Takeover spurs truck component economies

15 March 2001
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15 March 2001 | Liam O'Brien

Truck manufacturer ERF has succeeded in wresting a 10 per cent saving from its £100 million-plus procurement budget after its takeover by truck company MAN nine months ago.

In the wake of the acquisition, a 15-strong purchasing task force was set up under Klaus Wagner, ERF's procurement and finance chief. The team has been able to take advantage of the better terms obtained by MAN and its £1.5 billion purchasing spend.

Where an identical part could be supplied less expensively by a MAN contractor, ERF switched to MAN's supplier. It has made savings of 25 per cent on some components.

The team has also been able to upgrade specifications for its trucks, produced at its recently opened £28 million factory at Middlewich, Cheshire. These include replacing ERF's drum brakes with those made by MAN.

However, much of ERF's savings have been swallowed up by the rising value of the pound against the euro.

SMmar2001

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