BAA urges delivery rethink

Contractors need to work more closely with materials suppliers over "just in time" delivery and cut down on wastage, said BAA facilities strategy manager Chris Ctori last week.
Speaking at the launch of a Department of Trade & Industry-backed survey on the Heathrow Consolidation Centre (HCC), Ctori said: "Contractors don't understand their own
supply chain."
Wilson James runs a 2,000m2 distribution centre for BAA at Heathrow, with an external "laydown" centre one mile away.
The HCC operates as a delivery depot for materials firms. Contractors must give 24 hours notice for deliveries from their suppliers, and 48 hours to take materials away. Ctori said the firm imposes a penalty on contractors to give notice of deliveries.
John Brooks, senior project manager of construction management company Mace said the HCC greatly reduced delivery costs. Offload time at the Heathrow centre costs firms £6 per delivery, compared with £23 when materials were delivered directly to contractors working at the airport, and £36 to contractors working in central London.
Rogers said the HCC led to a more efficient use of materials. "We have to eliminate waste on-site. Huge amounts of materials are damaged before they're used."
Wilson James director Gary Sullivan agreed: "The real savings are in quality. We spent a huge amount in putting things right." He added that contractors could avoid over-ordering materials when using logistics centres.
Stanhope chairman Peter Rogers said there is an increasing need for suppliers and contractors to use logistics centres to avoid city centre congestion. "Most projects are linked to a community and more restrictions are being put on us. We're going to have to build more effectively and more efficiently in less time."
Ctori said logistics centres could see manufacturers cutting costs for contractors. "There's no incentive at the moment for suppliers to bring those savings forward. If they can get the logistics right, they're at a competitive advantage."
Sullivan said he would like to see centres like the HCC serving major cities. "The dream I have is to have four distribution centres around the M25."