13 March 2008
Construction firm Laing O'Rourke is to cut its suppliers from 2,000 to less than 500 in the coming year.
It hopes the move will improve relations with a smaller group of suppliers so it can drive competitiveness and improve standards of service. It also wants to target environmental issues in its supply base and reduce waste.
The firm will give suppliers the opportunity to get involved with projects at an early stage. It hopes they will influence design and the choice of materials and demonstrate their capabilities directly to the company's clients.
David Whatham, procurement director, said the construction industry is starting to realise the benefits of tighter management of the supply base, but explained selection is important. "We need to be consistent. We need to ensure the suppliers we select are the best fit for our ongoing business requirements.
"Through this we will have a greater opportunity to manage the supply base to ensure we have competitive supply conditions, greater certainty of project timing and excellent health and safety."