18 November 2008 | Paul Snell
Breakfast cereal producer Weetabix has outsourced its procurement for maintenance, repairs and operations (MRO) in a three-year deal.
The company, which also makes cereals Ready Brek and Alpen, wants to reduce the time engineers take sourcing products, improve compliance to purchasing processes and give greater visibility to how its maintenance budget is spent.
It has awarded the contract to ERIKS Integrated Solutions who will manage procurement and stores operations at the firm's site in Northamptonshire.
"We were looking to achieve best practice in this area; and for a more technical solution that allowed us to improve our position in terms of MRO procurement but one which also considered the manpower element," said Tony Lennon, head of purchasing at Weetabix.
He added that even though it was a small spend compared to the group's raw material procurement, it occupied a lot of time. He expects the deal to improve the company's position in the market with suppliers, reduce the amount of administration and acquisition costs.