Sellafield launches new strategy as it looks to save £1bn by 2020

More than 450 people representing companies and organisations across the UK gathered at Energus in Lillyhall for the first Sellafield Directors’ Forum and the unveiling of a strategy that sets out a more transparent way of engaging with supply chain companies.

The new strategy sets out key targets, including accelerating risk and hazard reduction by 25 per cent, delivering annual cost savings of 10 per cent and £1bn of lifetime cost savings by 2020 – when reprocessing at the site is set to be completed. It also outlines several initiatives designed to break down barriers for businesses already working on Sellafield-related contracts, along with those looking to access work for the first time.

Sellafield’s supply chain director, Martin Chown, said the event marked a completely new approach to how it works with companies by giving business direct access to those managing the major projects taking place on the complex site.

He said: “It is a fundamentally different approach to the way Sellafield has done business in the past. We’re heavily reliant on our supply chain and we want to make sure they work with us to access the business that we have in the best possible way.

“Today we’re talking to the supply chain directly about what we need, how we need it and when we need it so they can go away with real business opportunities and work out for themselves how they can engage with us and what work they can deliver.”

Mr Chown told delegates during his opening speech that a new collaborative approach would take time to establish, but the ultimate aim was to meet tough targets and create a resilient supply chain that supports the region’s economy.

He added: “We want business to feel that they are an extension of Sellafield and are a real part of the site mission, and not just working with us."

Senior supply chain manager Emma Jayne Gooch said she hoped the new approach would encourage more innovation to help solve complex problems at the site. She added that there would be six-month updates on the strategy and how it was performing.

John Grainger, stakeholder relations director for Britain’s Energy Coast Business Cluster, which has more than 300 members ranging from major international players through to locally-grown SMEs, said: “This could be a new dawn between Sellafield and the supply chain. A real opportunity to get local companies to secure more work with Sellafield."

The half-day event included workshops on the strategy, showcases of major activities on the site, such as the box encapsulation plant and silos maintenance projects. There was also a presentation from the Dounreay LINC programme, which was set up to encourage SMEs across the UK to collaborate to deliver innovative solutions to help with the clean-up of the Scottish site.

What does success look like?

The Sellafield supply chain strategy sets out 13 indicators for success:

· A clear robust procurement plan;

· Greater transparency and early engagement;

· Open and honest dialogue;

· Tenders and evaluations undertaken in a timely manner in line with the programme;

· Recognition that an effective supply chain is an extension of our own organisation and the need to shift from our more traditional master slave type relationships;

· A supply chain that enjoys and values working with Sellafield Ltd in a truly collaborative nature;

· Improved forecasting of work to be put through contracts/frameworks to allow the supply chain to invest, mobilise and add value;

· A clear forecast of work to allow supply chain to invest locally and establish a local presence where appropriate;

· Removal of barriers to entry, allowing SMEs to engage direct with innovative solutions and breakthrough technologies;

· A clear route where the supply chain can showcase products, services and new thinking/ideas;

· A safe environment where the supply chain can communicate problems it is experiencing without judgment;

· A supply chain without a singular reliance on Sellafield Ltd, but which understands that it needs to adapt and diversify its business in the creation of longer term value with the support of Sellafield Ltd;

· Working in partnership with the supply chain on joint ventures utilising the collective expertise, unique capabilities and know-how.