Barclays banks on central buying team to save £20m

3 August 2005
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04 August 2005 | Rebecca Ellinor

Barclays Group hopes a move to centralise its procurement function will save it an additional £20 million in the next 12 months.

Until now sourcing has been carried out separately for four areas - Barclays Global Investors; Barclaycard; Barclays Capital; and the Barclays retail and corporate banking division.

But under changes championed by Paul Idzik, chief operating officer, they have now been combined into a single global organisation.

If the reorganisation is successful, it could lead the way for the centralisation of functions such as HR, finance, property and legal services.

Kim Godwin, chief procurement officer (CPO), said: "If we do a good job, and we will, other functions may follow."

He is charged with saving more than £100 million in the next year, a 25 per cent increase on previous targets.

However, the reorganisation is likely to lead to some job losses, with the role of all current sourcing teams - made up of about 130 people - under review.

Godwin said this will lead to a change of role for some staff, the recruitment of new buyers and the loss of others.

"We're going back to basics and building from the ground up," he said.

"Where roles have not changed, we'll be dropping people straight into the new structure.

Where there are different roles, we'll use people's skills and experience wherever we can.

"It's too early to say how many people will be displaced, but this is about upgrading the capability of our business."

Godwin, who was previously group sourcing director, was promoted to CPO on 1 July.

John Durrell will lead the global technology sourcing team for Barclays Group. He previously held the post for Barclays Capital.

The restructuring programme should be completed in the next two months.

A new team in New York will take on some of the work currently done by staff in Europe and the Far East.

SMaug2005

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