C. Garino SMB-SC, SMB-SC-SO Stores @ ILO Forum C. Garino SMB-SC, SMB-SC-SO Context (group, material flow, mandate) Stores purchase figures 2017 objectives

Mandate The Supply Chain Group (SMB-SC) provides CERN Departments and Users’ Community supply chain related operations, using the synergies between them to reach an optimal level of service and confidence. This includes material management, supply and warehousing of standard items, import / export / cross-trade, goods reception and expedition, long-term storage, internal distribution, internal removal, waste management and supply of VAT / fiscal / customs / export control advisory services. La logique de ce groupe est d’associer les différentes activités SC comme la logistique et les magasins CERN afin de créer la synergie entre ces operations pour délivrer un niveau de service et de confiance optminale à destination des départements et les utilisateurs.

Group Scope Shipping Fiscal/Customs/Export advise Goods reception Shipping: Management of all external movements of material, world-wide, which are for the account of the Organisation, or and the request of collaborating research institutes . Recherche du transport le plus adapté au meilleur cout (classique, hors gabarit ou dangereux). Application de la reglementation douaniere spécifique au CERN. Préparation des documents de transport. Fiscal/Customs/Export advise: conseils en TVA et questions douanières, mais aussi le règlement des questions d'ordre fiscale et surtout la gestion des controls d'exportation, les licences et permis d'exportation en conformité avec l'OCB, l'Ordonnance Fédérale sur le control des biens (biens à double-usage / usage civile et militaire) et la réglementation européenne (UE) Réception: Vérification de la documentation, rapprochement aux commandes officielles, contrôle quantitative. Emballage et expedition en conformité avec reglementations (transport dangereux, par avion) Distribution: à partir des réceptions et magasins CERN. 2 tournées par jour (petits colis). 1 tournée palette. >1t ou >3.7M: transport EN Stockage: 3600 radioactif. Manque de place pour les futurs projets du CERN Déchets: Conventionnel recyclable mais aussi collecte et traitement de déchets spéciaux. Internal distribution Long-term storage Waste management

Group Scope Material & Supply Management Demand Management Approvisionnement: Matériel standard (référencé avec usage long-terme pour organisation et avec specification technique propre au CERN. 16k articles). Contrats de fourniture selon règles d’achat du CERN. Demand management: traitement des demandes de matériel (ventes) via document EDH et catalogue en ligne Central Stores: Entreposage et preparation des commandes. Raw material: Stockage + machines servant au débitage ou découpes selon besoin. Central Stores Raw Materials Workshop

Material Flow Flux de marchandise. Raison de ce groupe. Chainage. Tout passe par les réceptions. Traitement de dossiers d’importation ou transport. Flux standard (appro magasins): contrôle qualité. Le reste est directement distribué. Stockage long-terme. Exportations. Déchets. Stores

Stores - Mandate CERN Stores is responsible to provide materials management for standard items (i.e. consistent references with recurrent demands and a long-term interest for the Organization). This includes: Identification and definition of standard items based on the needs of the CERN Community through a standardization process; A centralized front line capturing and processing demands of standard items. It also covers non-standard material request in technical areas such as raw materials if the treatment may leverage existing CERN Stores expertise; Stock management and replenishment via order management using a pre-defined contractual framework following procurement rules; Inbound, internal and outbound warehousing operations (reception, quality control, put-away, inventory, picking preparation). Their ultimate goal is to ensure an optimal order lead time in line with users’ expectations, traceability, and quality insurance for materials received at the Stores, especially providing added value in the quality control of Personal Protective Equipment. Prior to initiate any purchasing procedure, the end user shall verify whether their requirement is covered by CERN stores standard equipment, in which case the requirement shall be handled by the CERN stores.  The purchasing of the said items falls under the responsibility of the Purchasing Service Rationalize Supply Chain expenses Ensure standardization process Front line for material request demands supported by a natural and integrated interface with CERN Community Recognized specialist for supply management and stock management at CERN Ensure traceability, quality control and safety for material introduced at CERN Operate physical warehouses in Meyrin and Prévessin according to industry standards Always consider the long-term interest of the Organization; Follow a dedicated procedure taking into account safety, technical constraints, financial impacts, global coherence, long-term vision and environmental aspects; Obtain and maintain CERN technical specifications together with technical expert community; Classify standard items. Develop a network and animate a community of experts and top users per technical domain; Integrate supplier catalogue when relevant (punchouts); Publish standard items on an online catalogue; Operate a straightforward solution to receive material request through an EDH application; Proactively capture user demands; Analyse, route and treat all demands concerning material which is or can become standard; Manage non-standard demands in specific technical domains (ex: raw material): feasibility analysis with relevant suppliers according to technical constraints and financial envelope, definition of technical specifications together with users and experts, initiation and follow-up of the purchasing process with a procurement officer. Control and reduce costs related to supply chain operations; Ensure an activity-based cost follow-up; Leverage virtual stocks (EDI, direct delivery and punchouts) when appropriate, taking into account indirect costs on other operations within CERN supply chain; Simplify procurement process for final users; Automate and rationalize purchase order, receipt and invoicing process with suppliers; Align industrial support to the needs of the activity; Control and anticipate stock level. Measure and limit impacts on CERN balance sheet; Define and follow-up KPIs; Define obsolescence strategy per item category. Inspect and control all material passing through the material flow controlled by CERN Stores; Increase identification of defects before distributing the materials across CERN; Register sensitive material in relevant databases, e.g. laptops, desktops, Personal Protective Equipment (PPE), chemical agents; Keep certificates and technical documents attached to each entry of sensitive material on CERN sites; Recall, control and maintain class 3 PPEs. Establish and maintain contracts supporting standard items in coordination with Procurement Office; Set up and maintain stock management parameters for a 95% level of service; Define and maintain requirements for an ERP solution according to industry best practices; Replenish the stock and treat direct delivery orders on a daily basis leveraging software solutions (Ex: automated purchase order collaboration with CERN supplier); Identify and develop consignation stocks. Offer interfaces and reporting to local stock managers at CERN or external suppliers (Vendor Managed Inventory); Capture and integrate demand forecasts. Establish a flexible industrial support contract with pre-defined SLAs according to industry best practices; Define operational procedures for all supply chain operations directly linked to Stores activities; Manage cycle inventories according to ABC classification; Integrate smoothly with other supply chain operations such as goods reception, internal distribution and transport for a competitive supply chain at CERN; Operate the raw material workshop; Organize space area and maintain equipment allocated to warehousing operations.

Stores Key figures 16k referenced items ~100k demand lines / year 15k+ purchase order lines / year for ~19M CHF 6.5 FTEs CERN + 11 FTEs Industrial Support Standard Material Warehouses [b.119: 1200 m2, b.128: 470 m2] Raw Materials Workshop [b.129: 2300 m2]

Stores Purchase – Per Category Increase over the last 3 years (absolute & relative)

Stores Purchase – Per Country China for electronic components

Stores Purchase – Per Item Family

2017 Stores Objectives Data quality improvement (update purchasing texts, technical specification reference, translation, CERN catalogue) for 1/3rd of referenced items Monitor level of service to achieve 95% Increase contractual support from 30% to 40% Increase purchase to poorly and very poorly balanced countries from 52% to 55% of total purchase Prepare contracts for LS2 Join the future CERN E-Procurement platform Technical specifications, safety document, standardization document and certificates in EDMS (traceability)

How ? Resources SMB/Stores: 7 supply managers 2017: +0.9 FTE dedicated resource assigned to quality improvement and LS2 contract preparation +1 FTE for sourcing and qualification of new firms in poorly /very-poorly balanced countries & contract advice (Jyri Pajunen) IPT/Procurement office: 0.5 FTE dedicated to Stores strategic purchase 0.8 FTE assigned to Stores general purchase 2017: Training of 2 procurement officers to punctually help increasing the contractual support

How ? LS2 Procurement strategy - POW Stores contracts > 200k

How ? Organization Strong cooperation with Procurement Office to increase contractual support Each contract request & PE is tracked in a tool. Board visualization, documents, communication. Backlog for future blanket contracts

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