15 February 2001
Train manufacturer Alstom is to extend trials of a supplier information portal in an effort to acheive savings of £1.25 million in the scheme's first 18 months.
Last October, the portal was set up with five key suppliers, in a bid to free purchasing staff from administrative work and allow them to focus on negotiations and sourcing suppliers.
Alstom, which has from an annual £30 million procurement budget, will increase the number of suppliers to 20 by the end of this month and hopes to have 80 per cent of suppliers - around 120 firms - online by the end of the year.
Savings will come from a reduction in stock inventory, increased negotiation power with suppliers and online exchange of data, said Ken Morris, Alstom's supplier development manager. "We can save at least £95,000 by having this information online," he added.