Inbound Logistics and Warehousing Programme Control Tower Project Sellafield Ltd. Industry Briefing Day

NO MARKING REQUIRED 8 November 20132

Inbound Logistics and Warehousing Programme

Control Tower Project

Sellafield Ltd.

Industry Briefing Day


Welcome – Safety and Domestic Arrangements

Paul Stuart – Head of Supply Chain

• Review of Today’s Agenda

• Safety Message: Road Safety in Cumbria – John Sidney


Today’s Agenda

09:15 Welcome, Domestic Arrangements Paul StuartIntroduction to Industry Briefing Day

Safety and Overview of Sellafield Ltd John Sidney

Overview of Inbound Logistics & Warehousing Paul Shawcross Programme and Project 1 Control Tower

Partnering with a Logistics Service Provider & Pat Mills Delivery Management System

Security and Distribution Centre Neil Braine

Questions & Answers All

10:30 Comfort Break 10:45 Commercial - Method of Contract/PQQ/Timescales Steve Kennedy

Transport Data & Socio Economic Considerations John Sidney

Questions & Answers AllSummary & Next Steps Paul Stuart

11:30 Close


Safety & Overview of Sellafield Ltd

John Sidney

Head of Supply Chain Strategy


Safety Share : Road Safety by Design


Sellafield – Europe’s largest, most complex nuclear site

Over 250 nuclear facilities on

2 square miles

Operated for over 60 years

Budget FY 2013/14 @£1.8bn

Employs over 10,000 people

• Figure equates to almost 30 per cent of Copeland workforce


Overview of Inbound Logistics & Warehousing Programme


Paul ShawcrossProgramme Manager


Drivers

1) Security

2) Commercial

3) Resilience

Security

Resilience

Commercial

IL&W


Visits to several UK Sites similar to Sellafield• London Heathrow Terminal 5, Construction

• Heysham - Morecambe Bay Gas On-shore warehousing & distribution centre for Offshore platforms

• Olympic Village Construction & Operations in highly congested areas / DMS

• Network Rail Milton Keynes – Operations & Deliveries

• TESCO Rugby – Multi-modal Distribution Warehousing with Road & Rail

• LLWR Examination of rail deliveries

• JCB Fradley – Large scale component Logistics, Warehousing & issue

• Jaguar JIT process for manufacturing

• AWE Construction in high security areas

• ATOS Delivery Management System used in Olympic Village deliveries

• Security & trace detection Goods and personnel screening

• Contractors and Supply Chain Conversations with 100’s of Sellafield Supply Chain entities

• Lambert Smith Hampton Studied the practical use of Lillyhall as base for work


INBOUND LOGISTICS& WAREHOUSING

PROGRAMME

SECURITY &DISTRIBUTION

CENTRE (PROJECT 2)

MATERIALMANAGEMENT(PROJECT 3)

CONTROL TOWER(PROJECT 1)

Partner w/Logistics Service

Provider

Implementation ofDelivery

Management System(DMS) for

Commercial Vehicles

Design & Retrofitof SL LillyhallWarehouseNorth Bay

Provision of Securityand Warehouse

Equipment &Commissioning

Locating andConstruction of SL

Transit Centre

Consideration ofSL Long Term

Distribution Centre

Implementation ofMaterial Control

Process

Implementation ofMaterial Status

Report for MajorProjects

Implementation of SLSAP Interface

Implementation ofImproved Inventory

ManagementProcess

Improvement of SLRail Siding & Offload

Capabilities


Partnering with a Logistics Service Provider

Delivery Management System (DMS)

Pat Mills

Major Projects/Logistics Lead


Major Components of Control Tower ProjectCONTROL TOWER

(PROJECT 1)

Partner w/Logistics Service

Provider

Implementation ofDelivery

Management System(DMS) for

Commercial Vehicles

Design & Retrofitof SL LillyhallWarehouseNorth Bay

Provision of Securityand Warehouse

Equipment &Commissioning


Current process for delivery to Sellafield Ltd (SL)

• Limited visibility of goods and materials transiting onto site• 10 delivery locations on SL estate • No delivery management system at Sellafield • Security process at Main Gate and Warehousing process is solid • 100% of goods transiting through SL Main Gate are searched • Clashes between HGV/LGV transport and personnel accessing Main

Gate

• Delays in moving materials/plant onto site• Additional charges from supply chain for wait times• Most procurement packages terms are “Delivered”

Results in the following scenario:


Average morning at Sellafield Main Gate


Logistics Services for Sellafield:

Primary Services:

– Partner with SL Inbound Logistics and Warehousing and Security personnel to staff the new SL Control Tower.

– Design and Retrofit of the SL Lillyhall Warehouse – Provision & implementation of a Delivery Management System– Specification, purchase and commissioning of security equipment

and warehousing equipmentSecondary Services:

• Provision of Lorries, vans and conveyance to forward materials from S&DC to Sellafield Sites – NON - NUCLEAR

• Provision of Tagging and Bonding process for forwarded goods• Warehouse Management System - receipt and control of materials whilst in

LSP custody during process• Receiving and interim–receiving of goods. Cross-docking of daily loads

received from the Supply Chain, security screening, consolidation of those loads and freight forwarding to SL Sites.


Logistics Services for Sellafield:Secondary Services (continued):

– Eventual Ex-Works collections of SL Supply Chain goods with delivery either to the S&DC or to SL sites. (Beginning in 2nd year of contract)

– Provision of standard Freight Forwarding services

– Arrangement of heavy lift or heavy haul transport as required

– Provision of Transportation Metrics (KPIs) to Sellafield IL&W

– Provision of Packaging and Preservation capability

– Relationship with British International Freight Association

– Ability to bring UK and International Best Practices to Sellafield

– Identification of methods for cost reductions for transportation in SL & Contractor Supply Chain

– Daily/weekly/monthly reporting to SL


• DMS will be the booking agent for all commercial vehicle access to the Sellafield Ltd facilities in west Cumbria.

• The Control Tower concept and DMS gives visibility of inbound transits and information on shipments.

• 40% of deliveries are expected to deliver to the Security & Distribution Centre (transferable loads)

• Transferable loads will be cross-docked, screened, consolidated, tagged, bonded and forwarded to site

• 60% of deliveries are expected to arrive at the Sellafield site Main Gate (non-transferable loads) mostly for Projects

• Non-transferable loads will transit directly to the Main Gate or eventually through the SL Transit Centre

Control Tower

Delivery Management System


• The DMS will enable commercial goods and materials to be delivered according to information provided from the Supply Chain.– Estimated 70,000 commercial deliveries per year

– 6 primary locations and 4 others.

– Potentially 15 concurrent deliveries

– ~ 25 delivery points within Sellafield site.

• Representatives from each Contractor or Supply Chain tier 2 organisation will require training in the use of the DMS .

• Unscheduled deliveries will be refused access to the Sellafield site or the S&DC (though some flexibility allowed)

WHO, WHAT, WHEN. WHERE, WHY &

HOW? BOOKING - DAY/TIME

Delivery Management System


Security & Distribution Centre

Neil Braine

Control Tower, Project Manager


Sellafield Lillyhall Warehouse – November 2013


Security & Distribution Centre

• Design, Refurbish & Operate

• Existing facility at Lillyhall 45,000ft²

– Services

• Unloading • Goods Receipting• Goods Tracking• Security Screening Activities• Consolidating Outbound Loads• Freight forwarding to Sellafield

sites

– Key Features

• Delivery Bays• Unloading / Lay Down Areas• Warehouse Equipment• Security Screening Equipment • Bonded Area• Secure Out Despatch Bays


Illustration of Security & Distribution Centre


Project Lifecycle

ProjectLifecycle

SanctionGate

SanctionGate

ProjectClose Out

Review

Concept Design

Construction

Commission

Operations


• Questions & Answers

• Break (Back in 15 minutes)


Inbound Logistics and Warehousing Programme


8 November 2013

Sellafield Ltd.

Industry Briefing Day


Contractual Engagement

Steve Kennedy

Contract Officer


Contractual Engagement

• Commercial Strategy

• Competition Timescales

• Pre-Qualification Questionnaire


Commercial Strategy

• One Contract: Single Logistics Service Provider

• Duration – four years operational

• OJEU Restricted process

• Method of Contracting

• Estimated Contract Value


Competition Timescales

Activity Date

PQQ Issued November 2013

PQQ Return December 2013

PQQ Results Announced January 2014

ITT Issued February 2014

Industry Sessions March 2014

ITT Return April 2014

Contract Award July 2014


How to do Business with Sellafield

Complete Tender Management (CTM)

• CTM will be the primary communication tool.

• The PQQ must be submitted via CTM, (two hard copies must also be provided).

• Sub contractor opportunities (Tier 3 & 4)

• Further information available at www.sellafieldsites.com/suppliers

http://www.sellafieldsites.com/suppliers


Pre-Qualification Questionnaire

Selection Criteria:

• General Information• Finance & Insurance• Health & Safety• Quality• Security• Design• Past Performance & Experience• Current Capability & Resource• Environment• Socioeconomics


Transportation Data &

Socio Economic Considerations

John Sidney

Head of Supply Chain Strategy


Transportation Data Traffic count data for Sellafield site from April - August 2012

Daily transitsonto site

Vehicle Type Main Gate WAMAC Gate North Gate Calder GateDaily

Site Total

Cars 2370 530 1640 770 5310

Buses 280 0 20 0 300

Light Vans 480 10 60 140 690

HGV 190 0 0 10 200

TOTAL 3320 540 1720 920 6500

Weekly average for HGVs = 1000 and for LGVs = 3450.


Transportation DataFebruary & March 2013

Breakdown Totals (Survey over 10 day period)

0

100

200

300

400

500

600

13/1

7/20

tH

GV

Tip

per

Arti

c/26

-44

t HG

V

3.5/

7.5t

Fla

tbed

Tan

ker

Pla

nt/E

quip

Ski

p

Tra

nsit

Low

load

er

Pic

k up

Min

i bus

Oth

er

3.5 / 7.5 Ton trucks

< 20 Ton HGV’s

Artic 26/44 Ton HGV’s

Tippers

Flatbeds

Tanker trucks

Low Loader

Plant & Equipment Skip trucks

Skip trucks

Transit trucks (white vans)

Transit Trucks (White Vans)

Pick up Trucks

Mini Buses

Other

(30% less than previous data)


Major Projects and Eqpt supply Forecast spend profiles

0

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

£ M

illi

on

0

50

100

150

200

250

300

nu

mb

er

of

ord

ers

order placement P&E supply Project costs

Sellafield – Current Best Estimate


Sellafield and Our Community

We employ almost 25% of our local community

We rely on each other to enable safe and effective operation of

the site

Our suppliers are integral to the success of the relationship

When you work with Sellafield we expect you to support our operational effectiveness now

and for the future

We employ almost 25% of our local community

We rely on each other to enable safe and effective operation of

the site

Our suppliers are integral to the success of the relationship

When you work with Sellafield we expect you to support our operational effectiveness now

and for the future


UK Government - Small & Medium sized Enterprise Agenda

Sellafield Ltd participates in the SME reporting programme led

by Cabinet Office

We produce a quarterly report to NDA on direct SME spend, and periodic survey reports of SME spend by our Tier 2 contractors

There is an expectation that our subcontractors support us in this

process

It is important that SMEs can compete on a level playing field

and that all reasonable opportunities are available to

them

Sellafield Ltd participates in the SME reporting programme led

by Cabinet Office

We produce a quarterly report to NDA on direct SME spend, and periodic survey reports of SME spend by our Tier 2 contractors

There is an expectation that our subcontractors support us in this

process

It is important that SMEs can compete on a level playing field

and that all reasonable opportunities are available to

them

Sellafield Ltd Total Supply Chain Spend – In £m’s (2012/13 Figures)


• Questions & Answers

• Comments


Summary & Next Steps

Thank you for attending

Documents

Inbound Logistics and Warehousing Programme Control Tower Project Sellafield Ltd. Industry Briefing Day