Inbound Logistics and Warehousing Programme Scope and Deliverables March 2013
14 March 2013
1
Programme Drivers – The ‘Why’ • Enhanced security arrangements at Sellafield require longer duration searches and checks across multiple access points • A long-term view on warehousing requirements is needed to inform decisions on suitability of current facilities and will also support how best to address resilience issues • Identify opportunities to co-ordinate deliveries and logistics to reduce cost
14 March 2013
2
Who does it affect? • The scope of the changes includes all residents at Sellafield (Sellafield Ltd, contractor organisations and tenants such as the National Nuclear Laboratory, Nuclear Decommissioning Authority and Civil Nuclear Constabulary) as well as Sellafield Ltd satellite offices in West Cumbria • Currently the scale of goods and materials deliveries direct to the Sellafield Site is approximately 1,000 deliveries per week • There are over 1,200 active Tier 2 suppliers to Sellafield Ltd, many of these rely on their own supply chain for direct delivery of goods to the Sellafield Site
14 March 2013
3
How does it work now ? • In general, deliveries arriving at Sellafield are un-planned • The majority of deliveries are by road (very limited use of rail) • Suppliers are located throughout the UK, with clusters around traditional manufacturing / engineering areas (such as the Midlands, Manchester area, North East) in addition to our Cumbria supply base • These goods/materials are either delivered • • • • • •
Directly to one or more customers To one or more ‘local’ on-site stores To a contractor compound (on-site or off-site) To a project specific compound (on-site or off-site) To on-site general Store To off-site Sellafield Ltd Store (Lillyhall)
14 March 2013
4
Current On-Site Logistics – Distribution
14 March 2013
5
Future Local Distribution Rationalised #
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14 March 2013
6
Distribution & Storage Option Zones Carlisle
Workington
Local Distribution & Storage
Penrith
Copeland
Sellafield
Barrow
14 March 2013
7
Preferred Model Supply
Region
Region
Sellafield
Sellafield
(NW or Midlands)
(Cumbria)
(Perimeter)
(On-Site)
EX WORKS
MANAGED LOGISTICS PIC/Laydown Distribution
Road/Rail/Sea
System Tracking
Local Delivery Buffer Storage
Inventory
Road/Rail
Security
Near Site Search
QC Receipt
Security
Control
Road/Rail Site Distribution Central PIC
Work Packaging O&M
Buffer Storage
Construction
Projects
Work Packaging
System Tracking
System Tracking Inventory
Long Term Store
Control
System Tracking PIC/Laydown Road/Rail/Sea
Road/Rail Construction
Security
Road/Rail
Batch Plant System Tracking
System Tracking Cumbria
Site Local
Site Fence
14 March 2013
8
In-Bound Distribution Vision Rail Access Rail Unload
Security
Delivery Management System
Batch Plant High Security Area Search Security
Sellafield Perimeter Fence
Distribution
Plant Issuing Centre
Security
Returns Storage
Bond & Tag
Plant Issuing Centre
Secure Route On Site Store
On Site Distribution
Near Site Search Security
Site Perimeter
HSA
14 March 2013
9
What does it mean for Suppliers (Phased Introduction) •
All Sellafield Site (including non SL tenants) and Sellafield Ltd off site deliveries will need to be pre-booked in advance via Delivery Management System (web access)
•
Increased emphasis on load consolidation and delivery to designated distribution points to reduce gross deliveries to the Sellafield Site
•
Tag and Bond principle to be introduced (to reduce need for multiple security searches)
•
Vehicles arriving outside of booking slots or with incorrect documentation will be not be granted access
•
All Commercial vehicles accessing the designated security points will be searched using enhanced search techniques
•
Goods and materials not for use on the Sellafield Site will be not be permitted on site
•
Increased emphasis on use of rail (bulk and other materials)
•
Changes to the way on-site supplier lay-down space is managed (phased)
•
Suppliers will have the option of using a nominated transport services provided by an SL Logistics partner
14 March 2013
10
Scope To be Delivered • Implement improved Delivery Management (time, location, system control) • Co-ordinate logistics routes and types (supply to delivery) to reduce costs and waste and support programme delivery – including road to rail strategy • Size and refurbish or replace existing SL buffer and long-term Distribution and Storage warehouse facilities • Provide consolidation route and consistent process for supplier integration and project materials • Co-ordinate, rationalise and control central and local stock management (standardised processes and systems)
14 March 2013
11
Summary of Proposed Programme Phasing 2013
2013/14
2014/15
2015
Strategy Validation
Control Tower & Delivery Management
Rail Investment
Distribution Operations
(3 Months) External Studies
Proposals to be presented for approval
Security, Distribution and Storage Investment (Interim/Final) IT Architecture
Proposed timetable and deliverables
14 March 2013
12
Next Steps (To Summer 2013) • Approval of Programme Business Case & Strategy (SL and NDA) Complete • Formal Establishment of the Programme Team - Complete • Stakeholder Plan (Define and Commence Execution) & Engagement – In Progress • Complete Options Analyses (Strategy, Distribution, Rail and IT) DHL and DRS • Engage Business and Key Suppliers (Development) • Logistics & Delivery Management Scope & OJEU Competition
