Compass going global to cut costs

18 June 2003
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19 June 2003 | Robin Parker

The Compass Group is to extend its UK strategic purchasing model to all 97 of its global territories to help it cut spend by more than £40 million.

The catering group's model favours specialist buyers and the separation of product and distribution costs for all types of food and non-food spend.

Markets outside the UK account for 80 per cent of purchasing spend, but were seen as less mature in their approach to procurement until now.

Compass is recruiting for a European procurement team, and has appointed a divisional purchasing director for markets outside Europe and the US.

Chris Bucknall, executive director of commercial services at Compass, who is responsible for the global procurement function, told the group's annual shareholders' conference that purchasing will this year deliver £50 million of the £70 million savings targeted since Compass merged with the Granada group three years ago.

"The merger gave us the conviction to invest in purchasing on a worldwide basis," he said.

Compass plans to cut food costs in all territories by at least 1 per cent and all non-food costs by more than 10 per cent over the next 10 years, an expected £40 to £50 million per year.

SMjun2003

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