Supply Chain Partnerships. A Presentation for Sellafield World Quality Day Presented by Martin McKay NDA Quality Manager v1. What we will Cover. An Introduction to the NDA The Quality Principle What Are Supply Chain Partnerships Why Do It – Advantages & Disadvantages Quality Implications
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A Presentation for Sellafield World Quality Day
Presented by Martin McKay NDA Quality Manager
Dounreay Site Restoration Ltd (DSRL)
PBO: UKAEA Ltd
Low Level Waste Repository Ltd (LLWR)
PBO: UKNWM Ltd
Approx £1.3bn was spent in the Supply Chain in 2008/09
Supply Chain Partnerships have been linked to quality for a long time as identified within the Quality principles
Principle 8 - Mutually Beneficial Supplier Relationships
An organization and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability to create value for both parties.
Applying the principles of mutually beneficial supplier relationships typically leads to:
Source International Standards Organisation (ISO)
Two or more organisations working collaboratively can leverage significant advantages in terms of efficiency, profitability and the creation of added-value solutions.
The definition used within the NDA is
A supply chain partnership can be defined as an approach with an attitude or management ethos , (towards selected suppliers) of openness, effective communication, close collaboration and co-operation, trust, honesty, transparency, sharing and mutual benefit
(attributed to Chartered Institute of Purchasing & Supply)
Today it is supply chain competing against supply chain, not individual firm against firm in business world today.
So it makes sense for firms to collaborate so as to maximise the ‘strength’ of the supply chain.
There are four basic ways to assure business function completion
The characteristics of partnerships
Characteristics of partnership types
Economic justification for partnerships
The Benefits of Supply Chain Partnership
The Strategic Forum for Construction evidences the results of the integration as:
Aside from the benefits mentioned previously, the specific benefits from a Quality perspective include:
In 2005 Anglian Water formed the @one alliance to deliver its AMP4 programme (Asset Management Plan 4).
The alliance was formed of contractors and consultants in the water industry, all selected for there skills and performance but also importantly their previous partnering performance. The alliance will operate from 2005 to 2010.
All parties involved provided resources dedicated to the alliance, to bring about an effective delivery team to develop and deliver solutions to the £1.4Bn programme of upgrades and improvements to the Anglian Water Infrastructure
The Alliance itself was set up to deliver more for less to ensure that there was a genuine joined up approach to delivery of AMP4 and to ensure that all aspects of delivery considered safety, environment, sustainability, quality and efficiency.
The alliance also set up an integrated procurement team including staff from all the participants, the role of this team was to reduce the procurement costs of AMP 4 by up to 5% of a £750m spend.
The collaborative procurement was not just economies of scale but also smart procurement, each partner looking at all aspects of the spend and also developing a procurement plan for AMP 4.
The integrated procurement team established partnerships with all parts of the supply chain from aggregates to plant hire to process plant, sharing the forward procurement plan with the suppliers.
The efficiencies were not all based on lower costs of materials but also on ensuring delivery to programme, better quality, and innovative solutions, as well as offering whole programme supply as opposed to the previous arrangements where by each project was procured separately.
(At this time all other water companies were running AMP4 programmes)
To date the results of the integrated procurement and alliance approach has delivered significant savings and efficiencies to the Anglian water AMP 4 programme, exceed initial expectations.
Anglian Water has recently released its tender for the AMP 5 programme of £2.5bn of work from 2010 to 2015, but may extend the contracts of those working on AMP4 as the performance of AMP4 has been excellent.
The AMP5 programme will use the same approach whoever is appointed to the alliance.
The Approach taken
Achievements and benefits
These significant achievements are underpinned by closer partnership. Companies and disciplines have united to achieve tangible and significant progress through highly successful and innovative liaisons.
The NDA Supply Chain Charter has recently been released and is available for consultation via the NDA website
The NDA Supply Chain development Charter was released in May 2009, Available on the NDA website