Key and Critical Suppliers

Transcription

1 Key and Critical Suppliers Why you really should care Ron Gorham NDA Head of Supply Chain optimisation and SME Champion

2 Agenda Background and context NDA Roundtable discussion and feedback NDA s approach to Strategic/Key suppliers Roundtable discussion and feedback NDA s approach to Critical suppliers Conclusions, final Q&A and close

3 The Nuclear Decommissioning Authority (NDA) Non Department Public Body established in April 2005 Strategic Authority tasked with dealing with the UK civil public sector Nuclear legacy 220 NDA staff responsible for an Estate with circa 18,500 employees Funded by HMG and the revenue from our commercial assets (declining) Annual funding of ~ 3.3Bn The NDA Estate comprises 17 Sites spread across 4 Site Licence Companies (SLC s), and 7 subsidiaries, with 60+ years of history Significant Supply Chain spend managed by our Site Licence Companies Nuclear Provision 164bn (discounted)

4 The UK Nuclear Sector has relied upon the Supply Chain since the very start, and still does Magnox Calder Hall 1956 Dounreay WAGR Construction THORP Fuel pond Windscale Piles 4

5 Today, tomorrow and until 2333! End-state: de-licensing circa /10/2017

6 Supply Chain Spend Total supply chain spend 2015/16: 1.76bn

7 Structural arrangements

8 The legacy (our Site Licence Companies) Dounreay LLWR Sellafield Magnox

9 Direct Rail Services Ltd DRS is the first choice provider for specialist transport solutions Key sectors: Nuclear supporting NDA mission Infrastructure support (Network Rail) Intermodal primary rail operator for Tesco Train Operating Company Support Coverage: 100 locomotives fully maintained in house - including 44 x Class 68 /88 locomotives 430 staff based across the UK Three fully equipped maintenance facilities Crewe Carlisle Motherwell 15,000 trains per annum over 3,000,000 miles

10 Why might you want to care about Key or Critical Suppliers? 10 min round table discussion Feedback to the group 10

11 NDA Supply Chain Hierarchy NDA Key Supplier Management Programme CO Partnering Programme Strategic Suppliers Critical Suppliers Statutory Providers/ National Infrastructure and/or Licensed Providers Managed by Site Delivery Teams with NDA oversight Important Suppliers Generic Suppliers 2016/17: 1.76bn spend 20 Suppliers 56% spend 98% UK Companies 71% UK Parents

12 KSM our approach Ethos Build Trust Share learning Release value Process Quarterly cycle Set-up discussions Managers brief execs on process 1. Pre-meeting Agree agenda & dashboard 5. Agree outcome report 2. Brief Execs Key both managers 4. Exec de-brief 3. Execs meet managers and execs (separately) both execs

13 Outcomes Exec comments: Raised awareness Worth it Nice discussion Very open and up for change Not too much [supplier] positioning Key Trends NDA estate is a significant Gov. spend with suppliers. Process immediately established an open, honest, trusting and useful discussion. Hard to keep discussion strategic. We don t constructively ask for enough from the suppliers. NDA Estate is a diverse non-aligned client. Overarching Objectives: Delivering value beyond the contract Client of choice

14 What are the potential key attributes for a Critical Supplier? 10 min round table discussion Feedback to the group 14

15 Critical Suppliers (Risk) OFFICIAL OFFICIAL

16 Initial conclusions Strategic/Key Initial discussions focused on us listening to market, process supported by only two metrics Some companies are struggling to have strategic rather than tactical discussions Will take time to harvest new opportunities In the process of developing an Estate performance model Critical First Estate baseline, which will continue to evolve Fairly robust at T2 level, but T3 and below still largely invisible We don t appear to have a Brexit risk Emerging risks at a named individual not a company level Mitigations need more focus and actively managed Generic A very number of suppliers are both Strategic and Critical We share a few of our Strategic Suppliers with other Departments (MOD) There is the potential for some Critical Suppliers to impact other Departments This work supports our SME and UK Growth programmes Need to move into Estate wide Performance Management

17 Any remaining Questions?