Efficiency bulletins were ubiquitous. That era is thankfully behind us, but it taught us adaptability. This is a trait we need now more than ever, especially with a new focus to meet significant forecasted increases in energy demand from artificial intelligence and data center growth. Nuclear is standing strong and is now foundational to the energy strategy.
The blue pill, or the red?
In 1999, The Matrix was a cultural phenomenon at the theaters. For many power station folks I meet, supply chain gives a very similar feel to that movie—opaque and like it’s some kind of (programming) language incomprehensible to the uninitiated.
But it doesn’t have to be that way. Let’s bring supply chain into the conversation—early and often. Supply chain personnel want to engage: Invite us into the initial discussions of a project or challenge us as a trusted partner with a seat at the table. Together we will streamline processes and remove obstacles before they occur. Today, when parts arrive at a receiving dock and there is no stock code to receive the material (or purchase order, for that matter), resolution requires numerous teams working out of process to get the parts received and ready for issue. And if it’s an NQA-1 part. . . .
But all this drama can be avoided. When supply chain is engaged from the start, we demonstrate value in many other ways, such as through improved service and labor contract terms, clear milestones and deliverables, preferred pricing through negotiated bid events, life-cycle management, and development of longer-term strategic alliances/partnerships with our key suppliers.
The untapped resource
Your friendly neighborhood supply chain professional likely is a member of NSCSL (Nuclear Supply Chain Strategic Leadership), which is our industry’s community of practice with several subject matter experts. While NITSL (Nuclear Information Technology Strategic Leadership) and NUOG (Nuclear Utility Obsolescence Group) are better known and resourced for the information technology and obsolescence groups, respectively, NSCSL is the historical “run silent, run deep” type of group. Envision supply chain leaders from almost every utility, a powerful group with monthly calls and annual conferences supporting proficiency through our unique teaching and learning forums where we learn from each other, share innovative tools, benchmark opportunities, call out “watermelon metrics” to reveal reality, and provide immediate support when emergent issues arise.
In a recent victory, NSCSL coordinated an aligned industry approach to the storage letter (or “good guy” letter) required when utilities sell each other material as part of the purchase order’s document package. Paragon, which brokers many of these inter-utility transfers/sales, had observed documentation variations that often slowed the process and added extra work to resolve. Discussions at the annual RAPID Conference hosted by Curtiss-Wright along with utility-specific examples enabled NSCSL to align as an industry and develop a new common, uniform storage letter. The result? An 85 percent reduction in receipt delays.
Looking ahead
With all the buzz around small modular reactors and advanced or next-generation reactors, supply chain professionals are an essential and strategic resource for navigating today’s complex commercial challenges. The AP1000 builds in the U.S. taught us that overlooking recommended critical spares and first-time preventative maintenance items can be costly, especially when components become obsolete before ever being ordered, let alone installed. And in today’s digital environment, obsolescence can happen at a rapid pace.
We must integrate inventory stocking policy strategies into the design process and ensure our EPC (engineering, procurement, and construction) contracts outline clear deliverables with safety and first-time quality anchored in milestones—with actual consequences should they be missed. Inventory levels must be optimized for long-term support. Not every component or piece part exists as a spare on a warehouse shelf, as there are considerable costs to an engineered part. So, we rely on our suppliers for just-in-time delivery of commodity material and other parts. Early last year, the combined inventory value of North America’s nuclear fleet was over $7 billion. Annual taxes and insurance are then a continued operations and maintenance expense to manage.
Building the future together
The nuclear industry is entering a new era, one defined not just by innovation, but through collaboration. Success will depend on breaking down silos and engaging every discipline right from the start. Supply chain is no longer just a support function; we are a strategic partner. When engaged early, we will help build the resilient infrastructure needed to power the future.
It’s an incredibly exciting time to be in nuclear, so let’s shift the paradigm and add a seat to the table. The future of nuclear is bright—and it’s one we will build better, together. See you out there!
Chad Wolf, CSCP, is the STARS Alliance supply chain manager (on loan from Arizona Public Service/Palo Verde) and current NSCSL chair.
