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Transport for London Case Study

26th Mar, 2019


Transport for London (TfL) is the integrated transport authority responsible for meeting the Mayor of London’s strategy and commitments on transport in London. TFL runs the day-to-day operation of the Capital’s public transport network and manages London’s major roads network.


TfL appointed us in 2012 to test certain back office functions and identify potential approaches and the likely range of benefits. This resulted in the commissioning of a Strategic Sourcing Programme to deliver multi-million pound savings through improved sourcing arrangements for information services (including data centres, data transfer, telephony, end user computing and ERP) and certain back-office functions (HR, finance and commercial including procurement).

The success of the Strategic Sourcing Programme led to our consultants being utilised again in 2013 for an 18-month Commercial Transformation Programme for TfL’s commercial function, by introducing new ways of working, efficiencies and focusing the released resource on added-value activities.

Around this time Barclays’ sponsorship of TfL’s cycle hire scheme was coming to an end and TfL needed to determine its approach to competing the sponsorship rights and maximise the value received in return. Further trust was placed in our consultants, and they were commissioned again to support the Cycle Hire Sponsorship Rights Recompete and enable the benefits to be maximised.


Key responsibilities for the Strategic Sourcing Programme (Feb 2012 – Jun 2013) included:

  • Programme initiation and shaping including the identification and engagement of stakeholders.
  • Analysis of the IM portfolio and identification of opportunities to enhance sourcing.
  • Production of the approach, materials and delivery of Back Office market testing by publication of a PIN in the OJEU.
  • Planning and delivery of a supplier briefing event, involving a supplier questionnaire and assessment.
  • Production of final recommendations on the outsourcing/internal transformation approach.

Following market testing we provided advice on the IM procurement delivery programme and provided:

  • Review and assurance of the IM sourcing strategy, business case and sourcing delivery project.
  • Production of various IM documents including; strategy chart delivery plans for procurement, delivery resourcing model; deliverables matrix and templates; timetables, governance and structures; key commercial and procurement considerations including dependencies and phasing of the four inter-related procurements.

The approach to the Commercial Transformation Programme (June 13 to Dec 14), included:

  • Programme set-up, PID production, development of project plans and deliverables.
  • Production of the business case outline.
  • Facilitating senior workshops to establish scope, outputs and approaches.
  • Designing an activity analysis and analysing the outputs to identify operational efficiencies.
  • Initiating the implementation activity and planning to establish the new operational teams to improve the accuracy, availability and efficiency of management information.
  • Third-party partner contract specification, dealing with commercial resources and the approach to soft market test, pre-procurement.
  • Development of the tender documentation and commercial arrangements.
  • Development of new organisational models and job descriptions to increase efficiency.

Towards the end of Barclays’ sponsorship of TfL’s cycle hire scheme, an approach to competing the sponsorship rights and maximising value return was needed.  We worked with key stakeholders to recompete the cycle hire sponsorship rights (May 14 to Dec 14):

  • Identify the sponsorship packages of core rights and viable additional options to be offered to the market.
  • Develop offer documentation and structure responses to publish to the market.
  • Develop evaluation criteria, scoring guidance and the offer selection method.
  • Develop the competition process and timetable.
  • Identify the implementation and hand-over approach, indicative timetable and costs.