Supply chain synergy for Network Rail
There's always a better way...
“This new implementation will provide a more efficient, controlled and transparent supply chain operation, helping to create a better service to the frontline where it can really make an impact on achieving ourobjectives for the railways in Great Britain.” Stephen Armstrong, Head of Sourcing Policy and Governance, Network Rail.
About Network Rail
Network Rail owns and operates Britain’s rail infrastructure, including 20,000 miles of track, 9,000 level crossings, 750 tunnels, 2,500 stations, 1,000 signal boxes and 40,000 viaducts and bridges. Three million customers a day depend on Network Rail to deliver its vision of a safe, reliable and efficient railway, fit for the 21st century.
Network Rail sought Logica’s help to deliver integrated systems and processes, the management of its materials supply chains, to provide the right materials at the right time and right price, and to minimise any disruption to the smooth running of the railway.
The challenge
Network Rail was operating a wide range of systems and processes across its materials supply chains, with limited co-ordination. These covered product management, inventory planning,purchasing, transportation, goods receipting, stock control and paying suppliers.
There were separate systems for heavy materials (such as railway sleepers and aggregates) and all other “non-heavy” materials. Some locations used separate spreadsheets and databases that were not linked to any central system and local systems and processes were not always fully documented.
The challenge was to design and then implement one integrated set of systems and processes for both heavy and non-heavy supply chains, and to provide Network Rail with a platform to deal with waste, inefficiencies and lack of usable information in these areas.
One of the major challenges was to gain agreement to a common approach across the company.
Our answer
Logica provided overall project management and a team of consultants which held the necessary mix of skills in Oracle solutions, supply chains and business experience. The consultants worked closely with counterparts in Network Rail, making the project a shared venture at all stages.
The new system is based on Oracle’s e-business suite and covers the supply chain from end to end. It gives Network Rail the ability to:
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Forecast, plan and schedule materials to meet future needs
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Request materials and immediately see their availability on-line
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Manage inventory with full visibility of stock levels and locations across the whole country
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Control purchases at all stages including ordering, transportation, delivery, supplier invoicing and payment
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Increase the re-distribution and use of surplus stock and recyclable items
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Automatically update financial and other systems
Commenting on the new system, senior consultant Mike Turner said, “A new classification system has been introduced so that every item and supplier now has one consistent description. There is a faster, more automated process for managing safety critical items, including virtually all materials used on the track and surroundings. The processes for repairs and recycling have been revised so that more materials can now be re-used.”
A success story
Project Synergy illustrates ‘client intimacy’ in practice. Mike continues, “We spent time visiting locations across the country, getting to know key people and developing a thorough knowledge of Network Rail’s existing systems. The trust and understanding developed during these visits was invaluable in the later stages of the project, which enabled the integration of systems, people and processes across the whole company.”
The new systems help staff to do their jobs better.
Network Rail now has a platform to further develop a reliable and cost effective supply chain in the future.
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