02/01/2002

European award success for Belfast gas project

Phoenix Natural Gas in Northern Ireland and their supply chain partners led by McNicholas Construction Services have won the European Supply Chain Excellence Award.

The award, in the Services and Utility sector organised by Logistics Europe and adjudicated by the Global Consultancy Group Accenture, was recently presented in London, to the Alliance Team of Phoenix Natural Gas, McNicholas Construction Services, Fusion Provida, Wavin and Fisher Francel.

The Award recognised the unique collaborative supply chain solution for delivering best in class performance in logistics costs and service levels in the Utility Sector. With the main material suppliers being based in Northern Ireland, England and France an Alliance was formed based upon the principles of partnering. This consists of a structured framework for collaboration, incorporating open book accounting between all parties, shared IT Systems and common Key Performance Indicators to measure continuous improvements in costs and service levels.

Ivan Bell, Phoenix's Director of Commercial Operations, said: "When Phoenix Natural Gas first began to construct a natural gas network in Belfast in 1996 we soon realised the importance of procurement and supply chain management as the majority of materials had to be imported and security of supply established.

“We also did not want to follow the normal procedure in the Utility Sector of free issue of materials to contractors. As a result the decision was taken to outsource both the procurement, supply chain management and the physical construction of the network to McNicholas Construction Services who have again been successful in retaining the contract for a second five-year term starting in July 2001. The principles of alliancing and the challenge to optimise cost and service levels were jointly put in place from the outset and have continued to sustain added value to our business.”

Jointly funded Supply Chain Manager Sean O’ Kane of Fusion Provida, said the results spoke for themselves as inventory halved saving £0.75 million. (SP)

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