Photo of Andrew New, Magnox and Meg Coates.
The nuclear decommissioning sector is highly regulated and has come under increasing pressure in recent years to seek increased value both in terms of the efficiency and effectiveness of sourcing activity. The government is looking for tangible evidence of innovation across this activity. This solution addresses this with a bespoke card solution.
Head of Magnox Procurement and Supply Chain
Magnox Limited, owned by the Cavendish Fluor Partnership Limited, is the management and operations contractor responsible for safely managing 12 nuclear sites and one hydroelectric plant in the UK. Working for the sites’ owner, the Nuclear Decommissioning Authority (NDA), Magnox are responsible for managing the sites through their lifecycles, overseeing all aspects of decommissioning, defueling and electricity generation.
Although the procurement department of Magnox was already widely using payment cards, the typical high volume/low value transactions were spread over a number of different cards and provided no effectiveness in terms of source.
Moreover, the company was using multiple payment cards issued by different providers, which didn’t offer enough control over the spread of the purchasing. As a result, there was a lack of quality management and spend-analysis information to help identify cost efficient suppliers and take greater control. The team thought that there had to be a quicker way of securing the pathway with a recognised supplier that would offer greater control and security.
In addition, the team at Magnox also wanted to work more strategically so that they could obtain more data from the purchase cards, which would then help to shape the development of the purchasing function and inevitably make the process quicker. It also required help with negotiations, taking Magnox away from always being on the back foot and allowing them to be far more proactive in their approach.
A single provider was required. Magnox therefore engaged the services of their bank’s commercial cards team to help them make the innovative and critical transition from multiple payment cards, to a streamlined, automated single card transaction system.
Following a design phase where the company’s needs were outlined, the bank identified what issues the system should address and proposed a bespoke solution using their Approval2Buy web-based technology.
This new single card technology offered Magnox complete control and flexibility – all transactions must be pre-approved by a line manager or meet the spend criteria set by the business before purchase, making the overall process much slicker.