Supply Chain Guide Working together in partnership
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1 CASE STUDIES Plan Smart, Deliver Lean Supply Chain Guide Working together in partnership
2 Background to the ISA The Infrastructure Strategic Alliance (ISA) provides a site wide consistent approach to the delivery of infrastructure projects through engaging with capabilities in the supply chain and using supply chain knowledge to ensure latest techniques and technology are applied. In combination with innovation driven from within the alliance and a focus towards benefits realisation, the ISA and its supply chain partners will combine to provide world class solutions. The ISA consists of Sellafield Ltd, and Morgan Sindall and Arup in joint venture as its delivery partner for a 1.1 billion contract to provide essential infrastructure assets to the Sellafield site. The ISA provides Sellafield with the capability and capacity to deliver a growing programme of infrastructure projects required for an aging asset portfolio. The contract is primarily aimed at utility assets, such as the on-site provision and distribution of steam, electricity, water supply, compressed air, bulk chemical storage and distribution, civil infrastructure and other facilities including roads, bridges and car parks. In March of 2014, the ISA mobilised a Purchasing and Supply Chain team to act as an enabler to create, implement and maintain purchasing and supply chain governance, as well as undertake supply chain liaison. We are in the process of establishing our supply chain, and are actively looking for new blood to working with the delivery partners, and new to the nuclear industry. Key Facts Contact value: up to 1.1 billion Contract Length: potential 15 years (5+5+5) Contacts Andrew van Schaick ISA Supply Chain Manager M: Andrew Hoyle ISA Programme Buyer M: Chris Turner ISA Project Buyer M:
3 Background to the ISA As a fully integrated team, the ISA can deliver turnkey services (excluding maintenance and operations) and is primarily aimed at utility assets, such as the on-site provision and distribution of steam, electricity, water supply, compressed air, bulk chemical storage and distribution, civil infrastructure and other facilities including roads, bridges and car parks. The scope of work also includes non-utility assets such as analytical services facilities, transport systems including road and rail, flask maintenance plants and emergency management systems. The ISA is striving to achieve the below business case objectives: Infrastructure asset risk reduction Increase the certainty of project delivery Enhance emergent work capability 40% schedule acceleration 25% cost reduction
4 Supply Chain Alignment The ISA operates in accordance with mutual trust and collaboration principals and operates on an open book basis with a joint approach to risk and opportunity. We are looking to engage with a strong performing, competitive and innovative supply chain. The ISA is continually striving to influence, shape and implement a shift in supply chain culture to create a norm where clear scopes, assigned deliverables and accountabilities are established per contracted scope. The ISA is more than happy to support SME s and those organisations who feel they can take a greater role in the supply chain. Our published Purchasing Plan outlines the strategy, principles and processes for ISA procurement. This is a part of our Collaborative Management Plan, which defines the governance framework within which all purchasing and supply chain management is delivered within the ISA. The plan has taken into account feedback received from the supply chain about the experience of working with the ISA to date. ISA Supply Chain Direct Spends (Dec 2012-Mar 2015) Overall ISA scope delivered: 123.4m ISA Supply Chain Spend: 57.5m ISA Supply Chain Britain s Energy Coast Business Cluster Member Spend: 31.7m
5 ISA Make Buy and Procurement Plan The ISA has a defined risk prioritised work programme, and selection and engagement of the most appropriate delivery route for each project will be subject to qualitative best athlete decision making via the ISA Make Buy process. Delivery options include: ISA Delivery Routes Make Sellafield Ltd Buy ISA Delivery Partner Buy Sellafield Ltd Supply Chain Buy ISA Delivery Partner Supply Chain The ISA will publish quarterly Sub-Contract Procurement Plans via the Sellafield Ltd website detailing all work package opportunities that requires delivery support from the supply chain. Initial review of the Financial Year 15/16 Sub-Contract Procurement Plan highlights the following areas of demand: 1) Site Surveying 2) Aggregates 3) Electrical Installation 4) Muckaway and Asbestos Removal 5) Scaffolding and Access 6) Substations and Switchgear 7) Pipefitting / Mechanical Installation 8) Fabrication To note, the ISA can support delivery from across Sellafield Ltd for work aligned to the scope of the ISA. 16.7m of Supply Chain spend delivered through SME s (Dec 12 Mar 15) 360 suppliers engaged with to date 200 SME s engaged with from the Supply Chain 66 Cumbrian SME organisations engaged
6 Supply Chain Development The ISA utilises a secure and openly accessible external web platform server for supply chain management, called I-Portal. This system captures supplier data, order history and two way feedback reports. It is mandatory for ISA to provide feedback to sub-contractors on a project basis based on Perfect Delivery and 100% Safe. ISA encourages to share frank feedback to the ISA per project too. The ISA will issue access to the Builders Profile Pre-Qualification system if, following initial discussion, there is a mutual agreement for the supplier to support the ISA. Support will be provided to the supply chain organisation in completing the Builders Profile Pre-Qualification Process. Following approval on Builders Profile is opens up the Sub-Contractor to all the organisations that use the system The ISA is adopting the Morgan Sindall PLC approach to Supply Chain Strategy. New Entrants Approved Preferred Supply Chain Classification New Entrant ISA Description ISA has developed Supply Chain list to large extent since initiation. However. opportunities remain for innovative organisations where there is mutual fit. Where appropriate, Supply Chain can join back-up list to replace those organisations that drop off from Approved status. Approved Organisations that consistently achieve performance scores > 50% based on I-Portal feedback and submit strong tender submissions Preferred Organisations that consistently achieve performance scores > 60% based on I-Portal feedback and regularly submit strong tender submissions.
7 Perfect Delivery Our Ethos We strive to be the best; an team that goes the extra mile for our customers and the local communities within which we work. That means we take pride in seeking new ways to improve what we do, acting with professionalism, honesty and transparency to deliver each and every project ahead of our customers expectations. Perfect Delivery underpins our vision to be the best in the industry through delivering exceptional customer service. We have adopted Perfect Delivery from our delivery partner, Morgan Sindall, and see it as a vision for the future. To provide focus to our philosophy, we have identified five tangible measures which we call our Customer Commitments. These commitments are applicable to all our customers both internally and externally, and it s equally important our supply chain recognise their importance, and strive to achieve these.
8 Creating Careers in Cumbria Morgan Sindall and Arup, as joint venture partners, in partnership with Copeland Borough Council delivered a Creating Careers in Cumbria scheme to provide 31 long term unemployed individuals a route back into employment. Over 8 weeks, candidates received support and guidance activities such as help with CV writing and interview techniques. 15 of the candidates secured five-week work experience placements within the ISA contract. The nine who have secured the jobs are drawn from a mixture of those who received training and those who completed the work experience programme. Nine of the individuals who completed the programme, were offered jobs within the Infrastructure Strategic Alliance, and a further seven have also secured employment within the ISA supply chain, three of which within the nuclear industry. Pat Graham, Director of Economic Growth at Copeland Borough Council, said: The results of this pilot scheme speak for themselves and we have been absolutely delighted to work with Morgan Sindall and Arup, as well as our local partners, to bring this scheme through the pilot with such a success. It remains our key priority to help people in our community into work, and the more that we can support the local supply chain to access local talent and develop our own people, the better for all concerned. Morgan Sindall and Arup are running this programme again, and would like to extend the invitation to the supply chain for their involvement going forward. If you would like more details, please contact isasupplychain@morgansindall.com
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