Boots to boost buying power

1 November 2007
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01 November 2007 | Paul Snell

Collaborative purchasing could be one benefit of private equity firm KKR's takeover of Alliance Boots.

Buyers from Boots recently met with counterparts from Dutch retailer Maxeda to find ways buying power could be harnessed across KKR's portfolio of companies. The two firms have already agreed to collaborate on a sea freight deal.

Boots also intends to share its purchasing knowledge and experience with KKR's US firms, which include retailers Dollar General and Toys R Us.

Julian Coles, director of sourcing and purchasing at Boots, told SM that KKR's influence on procurement had been "very positive". The private equity firm was keen to look at what extra value Boots could get from procurement, he added.

"Private equity has a reputation for cost-cutting, but it is experienced in finding money to grow the business through investment," he said. Coles added that supplier payment terms would be examined because cash flow was now a higher priority for the firm.

  • Terra Firma, another private equity firm, has appointed the former procurement and logistics chief at ICI, Chris Roling, as chief operating officer at music group EMI.

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