The Challenge The Partnership - Unipart Rail
CASE STUDY: SUPPLY CHAIN SOLUTIONS
Working with Carillion Rail to solve the Productivity Puzzle
The Challenge
The Partnership
East London Line Maintenance Project - Delivering the Ten-Year Asset Investment Requirements Plan for London Overground Infrastructure.
In line with the joint strategic drive for collaborative working, Unipart Rail and Carillion Rail have been working together to progress through the ‘Customer Engagement Pyramid’ and make the journey to ‘perfect fit’.
Carillion Rail are contracted to deliver a Maintenance renewal investment programme required to meet statutory obligations, sustain present capability, maintain the performance of the railway and provide identified asset initiatives. At the core of this programme Carillion Rail will renew selected signalling equipment across the East London Line with responsibility for the Design and Project management stage all the way through to Install and Test.
As part of this journey we have jointly reviewed our “value” add propositions with the objectives of delivering significant productivity improvements for Carillion Rail. We have made a significant start by working with Carillion Rail to support signalling material supply for the Maintenance Renewals Programme for East London Line and London Overground for Transport for London (TfL). This contract is underpinned by an existing Carillion Rail / Unipart Rail preferred supplier trading agreement, which determines both product pricing and business trading conditions. TfL needed both price certainty and confidence in product warranty from Carillion Rail.
S E RVI N G TH E WO R LD ’ S R A I LWAYS
The Solution A joint workshop was held to review innovative ways of material management and supply that would benefit Carillion Rail and their renewals programme for TfL. The following measures were applied: •
Consolidated single contract matching purchase order
Placing full responsibility on Unipart Rail for the management of all materials from assets to consumables has benefitted the Carillion Rail order process by instantly delivering a huge reduction in transactional process requirements and simplified financial controls. •
Allocation of a Unipart Rail logistics & signalling specialist
Work closely with the Carillion Rail team to develop the material requirements and renewal plan. •
Remote Warehouse training
Enabling the Carillion Rail team full access to Remote Warehouse, Unipart Rail’s web based material management system. The system provides the Engineering team with instant access to the material planning and delivery profiles together with material visibility across stocking locations & bespoke project reporting. •
Creation of a Virtual Warehouse
Ensuring Carillion Rail have 100% material visibility at the touch of a button and providing the engineers access to pre-load agreed material schedules to be ‘called-off’ to meet individual installations within the renewals programme. The Virtual Warehouse solution provides a secure storage facility for high value assets, which are consolidated for Just In Time (JIT) delivery to the specified worksite. •
Consolidated deliveries & kitting
Where appropriate materials are delivered as single installation ready ‘kits’, picked and packed to the exact requirements for each specific ‘job’. All kits are delivered on a pallet, clearly labelled and identified by job number (or by a customer specified reference) with all the components needed to complete the installation. •
Agreed delivery schedules & transport
Managed on a one-to-one basis directly between the Unipart Rail logistics contact and the Carillion Rail team, ensuring that materials are delivered JIT to the Carillion Rail renewals programme.
The Service Virtual Warehousing removes the need for Carillion Rail to have a physical warehouse for this project. It provides all the control and reporting mechanisms needed for the renewal plan without the cost, management and risk of having to hold materials on-site. Virtual Warehousing supports our Corporate Responsibility (CR) philosophy by reducing the environmental impact of our operations through the streamlining of deliveries, reduction of packaging and removal of unnecessary waste. By choosing the Virtual Warehouse solution Carillion Rail have been able to protect product warranty across all components as the warranty only commences upon delivery to site, ready for installation. Traditional delivery methods have meant in the past that warranty has expired between the time of purchase and the point of installation. The Carillion Rail team have worked closely with the Unipart Rail team to specify unique adaptations to Remote Warehouse to ensure that the Unipart Rail solution is a perfect fit to Carillion Rail’s material managment processes. Using the Unipart Rail system the Carillion Rail Management team have enhanced control of their material requirements and a real time understanding of any issues in the supply chain. Access to Remote Warehouse is available from any internet enabled device and provides users 100% control and visibility of all materials across multiple locations. Instant access to transactional information by part number, date, user, job/cost reference number results in significant time and cost savings further down the transaction process. Access is managed on an individual basis and users can be issued with specific levels of control. The system uses images as well as part numbers and product descriptions to help identify components quicky and easily, this is a very useful tool for stores personnel who may not be familiar with such a wide range of products. The introduction of “Installation Ready” Renewals Kitting has realised a number of productivity improvements. The Carillion Rail installation team is now focussed on completing the job and not spending important man hours looking for missing components. The risk of overrun is protected as all components are to hand and the pressure is removed from stores personnel who may not have the necessary knowledge to correctly pick and pack the required parts from their own stock. Fixed product and kit pricing is underpinned by the Carillion Rail / Unipart Rail preferred supplier trading agreement giving Carillion Rail peace of mind that they can deliver the renewals programme on budget with the ability to ‘call-off’ materials, this provides confidence in material availability to meet the engineering programme without slippages. One to one support from the single logistics contact provides Carillion Rail with the peace of mind and confidence that their requirements are fully understood and will be delivered to the schedule, right first time. All transactional and warranty documents are consolidated into a single piece flow. The result of this being much tighter and simplified financial controlling for Carillion Rail.
The Results The Carillion Rail team have identified annual savings of £120,000 per annum. £3,600
The solution also offers: •
100% budgetary control
•
100% compliance
•
100% material control & visibility
•
100% materials - right first time
•
80% reduction in material handling costs
•
80% reduction in transactional activity
•
25% efficiency gains by the installation teams
•
Satisfied client
£12,000 £24,480
£52,000
£36,800
Unipart Rail efficiencies have also been achieved in the following areas: •
End to end account management, generating a cost saving of £5,000 through reduced transactions and account query management
•
Logistics, consolidated deliveries, reduced packaging, waste reduction & reduced carbon footprint
The Feedback Mark Williams - Senior Buyer commented: “London Overground needed to commit their budget in advance of the programme delivery. We couldn’t simply place orders for materials and store them in our warehouse due to warranty issues. The Virtual Warehouse system provided by Unipart Rail means that warranty doesn’t commence until the product was ‘called off’. The product visibility that Virtual Warehouse provides provided us with the reassurance of material availability. This has created a significant cost saving for us as spares in our existing warehouse have become obsolete or in need of test and re-date”. Copyright © Unipart Rail. April 2016
Neil Wade - Signalling Manager commented: “The kitting service provided by Unipart Rail has generated time savings in picking alone of up to 12 hours per renewal shift. The reassurance of having the complete kits available in a single pre-packed and clearly labelled pallet allows our engineers to focus on completing the task in hand and not sourcing missing parts. The removal of risk associated with missing parts is invaluable”.
Unipart Rail (Infrastructure) Gresty Road, Crewe, Cheshire CW2 6EH Tel: +44 (0)1270 847 600 Fax: +44 (0)1270 847 601 email: [email protected]
Visit www.unipartrail.com for details of our Worldwide Regional Offices
Working with Carillion Rail to solve the Productivity Puzzle
The Challenge
The Partnership
East London Line Maintenance Project - Delivering the Ten-Year Asset Investment Requirements Plan for London Overground Infrastructure.
In line with the joint strategic drive for collaborative working, Unipart Rail and Carillion Rail have been working together to progress through the ‘Customer Engagement Pyramid’ and make the journey to ‘perfect fit’.
Carillion Rail are contracted to deliver a Maintenance renewal investment programme required to meet statutory obligations, sustain present capability, maintain the performance of the railway and provide identified asset initiatives. At the core of this programme Carillion Rail will renew selected signalling equipment across the East London Line with responsibility for the Design and Project management stage all the way through to Install and Test.
As part of this journey we have jointly reviewed our “value” add propositions with the objectives of delivering significant productivity improvements for Carillion Rail. We have made a significant start by working with Carillion Rail to support signalling material supply for the Maintenance Renewals Programme for East London Line and London Overground for Transport for London (TfL). This contract is underpinned by an existing Carillion Rail / Unipart Rail preferred supplier trading agreement, which determines both product pricing and business trading conditions. TfL needed both price certainty and confidence in product warranty from Carillion Rail.
S E RVI N G TH E WO R LD ’ S R A I LWAYS
The Solution A joint workshop was held to review innovative ways of material management and supply that would benefit Carillion Rail and their renewals programme for TfL. The following measures were applied: •
Consolidated single contract matching purchase order
Placing full responsibility on Unipart Rail for the management of all materials from assets to consumables has benefitted the Carillion Rail order process by instantly delivering a huge reduction in transactional process requirements and simplified financial controls. •
Allocation of a Unipart Rail logistics & signalling specialist
Work closely with the Carillion Rail team to develop the material requirements and renewal plan. •
Remote Warehouse training
Enabling the Carillion Rail team full access to Remote Warehouse, Unipart Rail’s web based material management system. The system provides the Engineering team with instant access to the material planning and delivery profiles together with material visibility across stocking locations & bespoke project reporting. •
Creation of a Virtual Warehouse
Ensuring Carillion Rail have 100% material visibility at the touch of a button and providing the engineers access to pre-load agreed material schedules to be ‘called-off’ to meet individual installations within the renewals programme. The Virtual Warehouse solution provides a secure storage facility for high value assets, which are consolidated for Just In Time (JIT) delivery to the specified worksite. •
Consolidated deliveries & kitting
Where appropriate materials are delivered as single installation ready ‘kits’, picked and packed to the exact requirements for each specific ‘job’. All kits are delivered on a pallet, clearly labelled and identified by job number (or by a customer specified reference) with all the components needed to complete the installation. •
Agreed delivery schedules & transport
Managed on a one-to-one basis directly between the Unipart Rail logistics contact and the Carillion Rail team, ensuring that materials are delivered JIT to the Carillion Rail renewals programme.
The Service Virtual Warehousing removes the need for Carillion Rail to have a physical warehouse for this project. It provides all the control and reporting mechanisms needed for the renewal plan without the cost, management and risk of having to hold materials on-site. Virtual Warehousing supports our Corporate Responsibility (CR) philosophy by reducing the environmental impact of our operations through the streamlining of deliveries, reduction of packaging and removal of unnecessary waste. By choosing the Virtual Warehouse solution Carillion Rail have been able to protect product warranty across all components as the warranty only commences upon delivery to site, ready for installation. Traditional delivery methods have meant in the past that warranty has expired between the time of purchase and the point of installation. The Carillion Rail team have worked closely with the Unipart Rail team to specify unique adaptations to Remote Warehouse to ensure that the Unipart Rail solution is a perfect fit to Carillion Rail’s material managment processes. Using the Unipart Rail system the Carillion Rail Management team have enhanced control of their material requirements and a real time understanding of any issues in the supply chain. Access to Remote Warehouse is available from any internet enabled device and provides users 100% control and visibility of all materials across multiple locations. Instant access to transactional information by part number, date, user, job/cost reference number results in significant time and cost savings further down the transaction process. Access is managed on an individual basis and users can be issued with specific levels of control. The system uses images as well as part numbers and product descriptions to help identify components quicky and easily, this is a very useful tool for stores personnel who may not be familiar with such a wide range of products. The introduction of “Installation Ready” Renewals Kitting has realised a number of productivity improvements. The Carillion Rail installation team is now focussed on completing the job and not spending important man hours looking for missing components. The risk of overrun is protected as all components are to hand and the pressure is removed from stores personnel who may not have the necessary knowledge to correctly pick and pack the required parts from their own stock. Fixed product and kit pricing is underpinned by the Carillion Rail / Unipart Rail preferred supplier trading agreement giving Carillion Rail peace of mind that they can deliver the renewals programme on budget with the ability to ‘call-off’ materials, this provides confidence in material availability to meet the engineering programme without slippages. One to one support from the single logistics contact provides Carillion Rail with the peace of mind and confidence that their requirements are fully understood and will be delivered to the schedule, right first time. All transactional and warranty documents are consolidated into a single piece flow. The result of this being much tighter and simplified financial controlling for Carillion Rail.
The Results The Carillion Rail team have identified annual savings of £120,000 per annum. £3,600
The solution also offers: •
100% budgetary control
•
100% compliance
•
100% material control & visibility
•
100% materials - right first time
•
80% reduction in material handling costs
•
80% reduction in transactional activity
•
25% efficiency gains by the installation teams
•
Satisfied client
£12,000 £24,480
£52,000
£36,800
Unipart Rail efficiencies have also been achieved in the following areas: •
End to end account management, generating a cost saving of £5,000 through reduced transactions and account query management
•
Logistics, consolidated deliveries, reduced packaging, waste reduction & reduced carbon footprint
The Feedback Mark Williams - Senior Buyer commented: “London Overground needed to commit their budget in advance of the programme delivery. We couldn’t simply place orders for materials and store them in our warehouse due to warranty issues. The Virtual Warehouse system provided by Unipart Rail means that warranty doesn’t commence until the product was ‘called off’. The product visibility that Virtual Warehouse provides provided us with the reassurance of material availability. This has created a significant cost saving for us as spares in our existing warehouse have become obsolete or in need of test and re-date”. Copyright © Unipart Rail. April 2016
Neil Wade - Signalling Manager commented: “The kitting service provided by Unipart Rail has generated time savings in picking alone of up to 12 hours per renewal shift. The reassurance of having the complete kits available in a single pre-packed and clearly labelled pallet allows our engineers to focus on completing the task in hand and not sourcing missing parts. The removal of risk associated with missing parts is invaluable”.
Unipart Rail (Infrastructure) Gresty Road, Crewe, Cheshire CW2 6EH Tel: +44 (0)1270 847 600 Fax: +44 (0)1270 847 601 email: [email protected]
Visit www.unipartrail.com for details of our Worldwide Regional Offices
