26 April 2001
Corporate travel consultancy Hogg Robinson is reorganising its procurement department, including adding more responsibilities for overseas operations, according to the company's new director of procurement.
"Hogg Robinson is expanding rapidly and we need to review our expenditure in all markets," Michael Speed told SM. "It will be purchasing at a new level."
Hogg Robinson sold off its high-street travel shops to Going Places several years ago and, after a management buyout last year, has focused on business clients. It now operates in 10 countries with 7,000 employees. Each national operation has its own suppliers for commodities including travel, computing and software, explained Speed, who was CIPS president in 1991.
Framework agreements will be set up, but there is not likely to be a major centralisation of procurement buying, he added. Spend with airlines is one of the first areas to be scrutinised.
"We want to consolidate and rationalise with fewer suppliers. The key will be supplier relations," he added.