RBS targets further procurement savings

28 March 2001
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29 March 2001 | Liam O'Brien

Royal Bank of Scotland (RBS) is targeting more areas of purchasing for savings as it continues to reduce its £2 billion procurement budget.

A major review of purchasing in the wake of RBS's takeover of NatWest last year has netted substantial savings, including a 40 per cent cut on lift maintenance, Ed Smith, group purchasing operations director, told SM. Areas under scrutiny now include media services, stationery, information technology, security, cheque-book production and building services.

News of the post-merger savings comes shortly after the bank announced that it was to auction more than £70 million-worth of its purchasing with FreeMarkets, an online auctions operator.

RBS said the year-long move was a toe-in-the-water exercise, and would tackle spending on mobile phones and utilities.

Purchasing at the combined bank was expected to deliver annual savings of about £75 million, with a focus on reducing the number of suppliers.

RBS currently employs 100 purchasing staff, about two-thirds of the total employed by the banks before the merger. The losses have come mainly from redundancies and inter-departmental moves.

SMmar2001

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