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UKAEA opts for e-procurement

A Buck and Hickman product story
Edited by the Engineeringtalk editorial team Oct 10, 2005

Premier Farnell subsidiaries Farnell in One and BuckHickman InOne have won three supply framework agreements with UKAEA thanks to their ability to tailor e-procurement solutions.

Premier Farnell subsidiaries Farnell in One and BuckHickman InOne have won three supply framework agreements with UKAEA thanks to their ability to tailor e-procurement solutions using the organisation's SAP system.

The contracts cover high-volume low-value purchases across three procurement areas - electronic and electrical equipment supplied by Farnell InOne, and personal protective equipment (PPE) and tooling both supplied by BuckHickman InOne.

Using SAP and the tailored e-procurement catalogues allows UKAEA to monitor spend across different areas.

Reports can be produced covering departmental or an individual's spend, by product area or individual product.

The system allows managers to manage the purchasing process and framework agreements rather than getting involved in the details of individual low value items.

The agreements cover five UKAEA sites: Harwell, Dounreay, Cullham, Winfrith and Windscale.

Employees, generally engineers, can access product through e-procurement using punch out catalogues via UKAEA's SAP system, by printed catalogues supplied by Premier Farnell, by telephone or via the Internet.

Generally the preferred solution is to use the tailored punch out catalogues on UKAEA's SAP system.

These three online catalogues include all the products needed by UKAEA at the price negotiated by the organisation.

It details product description with photograph and shows product availability for delivery.

Typically an employee would access SAP using their password through their local PC and select a product catalogue.

They can then search by product or product type, check availability and place their orders in a shopping basket.

Once approved, the purchase order is e-mailed to Farnell InOne or BuckHickman InOne for fulfilment.

Using SAP an order's delivery status can be checked.

On receiving the order the employee checks the contents against an online tick box form on SAP.

Typically the order is delivered next day, with the Dounreay site, on the North coast of Scotland, receiving deliveries within 48 hours.

Premier Farnell administers all the catalogues with additions or removals decided on a regular basis through monthly meetings with the UKAEA Frameworks team.

In addition some consignment stock is held on the five sites, particularly for PPE equipment which may be needed immediately for a job.

This stock is paid for when it is used.

BuckHickman InOne is exploring whether a vendor managed inventory solution may be appropriate in some cases where it manages stock replenishment using barcode and inventory management software.

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