Preussag looks for savings after takeover of Thomson

14 December 2000
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14 December 2000 | David Arminas

Purchasers at Thomson Travel Group (TTG) will seek savings by working closely with their German counterparts within the Preussag Group, which bought the UK company last summer.

TTG, which includes travel agencies Thomson Holidays and Lunn Poly, and Britannia Airways, has embarked on a purchasing integration project with parts of Preussag, said David Rowell, a group purchasing manager responsible for supply chain analysis and fuel at TTG.

Preussag, which includes German travel group TUI and airline Hapag-Lloyd, became one of the world's biggest travel companies when it bought TTG. Joint procurement working teams have been set up between TTG and TUI/Hapag-Lloyd to consider areas of collaboration, including aviation spend, and wider group opportunities such as IT systems.

Since the German takeover in the summer, the purchasing teams at TTG, TUI and Hapag-Lloyd have been in discussions about efficiencies, said Sue Jefferys, director of purchasing and supplier management at TTG. "It's early days yet and we are just now looking for synergies," said Jefferys.

The UK group held a conference late last month to encourage its 250 strategic suppliers to support the enlarged group and ensure that TTG will continue to build on its UK supplier relationships. Small firms in particular were reassured about continuity of contracts with TTG and were also told to look upon the opportunities to supply the wider group, Rowell said.

Althought the focus is more cost-related, the best prices and service levels will be deciding factors in supplying TTG, he noted.

SMdec2000

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