1 December 2009 | Jake Kanter
Package holiday firm Thomas Cook has centralised its procurement department in a bid to cut costs.
The reorganisation was unveiled in the company’s financial results yesterday and forms part of a wider £113 million restructuring programme, which will help it achieve annual savings of £50 million.
Thomas Cook said centralised purchasing will boost group buying power for indirect and IT spend. It did not reveal how much it expects improved procurement to save.
Separately, the company has saved £205 million of a targeted £215 million, following its merger with MyTravel Group in 2007.
Thomas Cook posted better than expected results for the year ending 30 September, with revenue rising 6 per cent to £9.3 billion compared with 2008.