17 January 2002
The company that makes London taxis may extend e-auctions for fuel and office supplies after it saved 10 per cent on steel.
The savings by Coventry-based London Taxis International (LTI) beat expected targets of 3-5 per cent on the annual purchase of 2,500 tonnes of steel in an online auction late last year, Adrian Banks, its purchasing manager, told SM.
"Suppliers were nervous, but we had a two- to three-month planning stage," he said.
Consultant Group Supplies set up the two-hour auction. There were four bidders but the firm remained with incumbent supplier HE Perry Willenhall.
A new LTI taxi has just been launched and the company's procurement function is under pressure to keep costs down when tooling-up, Banks said.
The company makes about 3,000 taxis a year.
• Taxi maker Manganese Bronze will buy Chinese-made components for its UK cars as part of its licensing deal with Brilliance China Automotive Holdings. Brilliance will make the car in mainland China for the next 20 years.