06 September 2001
House builder Persimmon is to save more than £10 million a year on materials with the extra buying power it gained from acquiring rival Beazer in March.
Persimmon has identified annual savings of £7 million, or £1,000 per plot, on the construction of Beazer's homes and expects similar savings on its own properties.
Beazer's central purchasing department has been closed with the loss of around 40 buyers. Savings will be achieved in part by using Persimmon's devolved procurement structure, which gives responsibility to specialist buyers in the company's local units.
The procurement strategy is part of a bottom-line savings target of £33 million.