Wednesday 19 December 2012

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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