Procurement Team Generates £72m Savings for SABMiller

Beyond purchasing the goods, services and resources required by their company, procurement managers have other important tasks too such as:

Working towards improving the bottom line 

Delivering savings whenever possible

And, this is exactly what the global brewer SABMiller's team has accomplished, with the company managing to curb £72 million expenses by way of streamlining the organisation's procurement, HR functions as well as finance. It set up the supply chain and distribution management system besides establishing a global procurement arm named 'Trinity' in order to buy materials that are used by the various departments of the group. 

“Margins have risen modestly despite higher input costs, as a result of our cost reduction and procurement initiatives supplemented by a positive contribution from the acquisitions and business combinations concluded in the second half of last year," commented Graham Mackay, SABMiller' executive chair.

In the meantime, a Wales based public sector procurement group was also recognised for its prudent spending powers. Value Wales (that works for the Welsh government) grabbed the Civil Service Awards 2012's for procurement after improving access to public sector jobs for the unemployed in the country, reported Supplymanagement.com.

The Value Wales'  head of policy, Mr Gunther Kostyra exclaimed, "It's really wonderful that all the work the Value Wales policy team does on a daily basis to help improve economic regeneration in Wales is now recognised at a UK level. "We first piloted the community benefits approach in 2003 and seeing it grow into the cornerstone of Welsh government procurement policy is really rewarding."

Department of Energy and Climate Change's green deal procurement and service delivery team was also nominated for the accolade. The company has acquired an energy saving advice call centre that's responsible for generating a huge saving of £40 million over the past 3 years.

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Hellmann UK Enters A New Partnership with H. Essers

In recent developments, Hellmann Workdwide Logistics UK- the leading logistics provider announced a new road-freight-partnership with H. Essers . Notably, H. Essers is the leading groupage logistics company in Belgium.

This partnership is reportedly in accordance with the standards of SA (System Alliance). The partnership will link Belgium with the UK's industrial regions and boast a 48 hour door-to-door service. When asked about the partnership, Guido Van Dessel- H. Essers general manager said, "This partnership represents a way for both companies to further improve the scope and range of their customer service. We are one of Belgium's leading freight forwarding companies, while Hellmann brings an equivalent level of expertise and resource in regards to the UK."

The partnership received applauds from  Matthew Marriott- Hellmann UK commercial director. Mr Marriott said, "H. Essers is one of the most renowned and respected logistics providers in Europe and has a similar background to Hellmann due to being a family-run business. We are delighted to have announced this partnership.”

"We are committed to consolidating and improving the quality of our services across Europe, and this new partnership is a really positive step for both companies. The daily shuttle means that we can offer a 48-hour door-to-door groupage service - something I'm sure customers on both sides of the channel will really appreciate," he added.

"We recognise that the eastern regions we can now service have an ever increasing demand for logistics provision, reflecting the growth of regional economic markets and industries," added Mr Marriott.

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Report: European Logistics Market Will Not Perform Well This Year

According to the latest reports, performance of the European Logistics market is likely to remain sluggish this year in comparison to that in year 2011.

 The BNP Paribas Real Estate Q2 2012 European logistics market survey revealed that the demand for logistics services has been weakening for quite some time in many European countries. This indicates an impending slowdown in the uptake and requirement of logistics supply partnerships. As a consequence of this, the industry is expected to experience a weak end to the year as the final year-end performance will plunge below the level of 2011. However, the report indicated a steady performance of the UK logistics market, as take-up reached 1.4 million sq m.

Notably, The Midlands grabbed a lion's share of that uptake, while the North-West contributed immensely in take-up. It is expected though the take-up will not exceed 2011 figures by year-end. In the meantime, the report indicates that the strong German economy will lead to a "VERY GOOD YEAR" for the nation.

Despite the fact that logistics market in the UK could not perform as well as in year 2012 as it did in previous year, the country continues to remain the prominent occupier market for warehouses above 5,000 sq m in Europe. According to the report, Frankfurt and Hamburg are the largest logistics markets in Germany.

The rest of Europe also witnessed some small growth whereas France saw an increase in the take-up during H1 2012 reaching 773,000 sq m. However, the Netherlands witnessed "stable but sluggish" performance, as per SHD Logistics reports. The Spanish market is languishing, indicates the report.

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Bombardier Hires the Recruitment Services of Cast UK

One of the leaders in transportation systems manufacturing, Bombardier is renowned throughout the UK as a reliable manufacturer of carriages, trams and locomotives. Notably, the company is also into aircraft making. As is the case with any manufacturing operation, the cost of raw material has played a pivotal role in the overall profitability of Bombardier as well. Therefore, when procuring the material, they ensure to employ only the experts who possess extensive experience in the field. Recently, there was a vacancy for a buyer, they consulted Cast UK and hired them as their procurement recruitment agency to help them find a few good initial candidates. 

On being asked about the job description for the post, Cast UK spokesman said, “The short-listed applicant would report to the purchasing manager. However, he/she will be expected to bear a good deal of responsibilities within his/her role to build expertise in the manufacturing and procurement sector. He/she will also be responsible for enhancing supplier relationships and continually ensuring reduction in manufacturing costs.”

“We have a large database and regular contact with people in the procurement sector, so we were sure that Bombardier would be happy with the shortlist. We took away the time-consuming part of searching for employees and allowed them to focus on choosing the most appropriate candidate from a small but experienced pool,” as per Wayne Brophy- founder and managing director of Cast UK. 

 Bombardier filled the vacancy with one of Cast UK’s suggested candidates, who had a background as a procurement professional for an international engineering company.  

Cast UK- an Overview 

Headquartered in Manchester, Cast UK has highly competent and experienced consultants dedicated to different parts of Great Britain and Northern Ireland. This leading procurement recruitment agency has earned a great reputation in the marketplace mainly because of the fact that Cast UK specialises in management and executive positions within the logistics, procurement and supply chain sectors. Furthermore, all their consultants are sourced from these sectors, too.

New Payment Agreement Could Prove Beneficial for Supply Chain Firms in Scotland

With a number of key players signing the new agreement, more payment protection will be provided to all those catering for the supply chain of construction industry in Scotland. It is noteworthy that Carillon, Babcock, Tata Steel and Balfour Beatty and many other businesses have already declared their support for the Supply Chain Finance initiative. 

This agreement is likely to accelerate the payment terms for suppliers. Operating under this payment agreement, the supplier firms will notify the bank when an invoice has been approved for payment so that the bank can offer it a 100% advance payment at minimal interest rate. This way the suppliers and others in supply chain management jobs will be able to maintain sufficient cash flow within smaller businesses. 

This initiative is being backed by Federation of Small Businesses. National chair John Walker noted that this payment agreement could improve the working capital for the SMEs and help the firms deal with the persistent problem of delayed payments.

 "The government is determined to back all those businesses who aspire to get ahead and take on more people,” as per David Cameron.  

About Cast UK 

Cast UK is one of the leading professional level supply chain recruitment agencies and most Trusted Supply Chain Consultant across the nation. Register with us today to grab the most lucrative supply chain management jobs!