06 July 2009 | Allie Anderson
Severn Trent Water (STW) has teamed up with seven construction companies to form a collaborative procurement group.
The "buying club" brings together purchasers from STW's seven delivery partners for its proposed capital programme starting in 2010.
These include wastewater construction firm Biwater and builders Laing O'Rourke Imtech and Costain. It is hoped the group will help all parties cut costs and improve planning.
STW category manager Louise Handcock, who is leading the project, told SM: "By working together we can bulk buy shared commodities, resulting in a reduction in costs and an increase in efficiencies."
Early plans suggest the group will be able to influence 20 per cent of STW's £1.6 billion proposed capital spending project. It will be purchasing goods such as safety equipment.
"It's an improved way of working which reinforces our desire for close partnership with our contractors to create one supply chain," Handcock said.
It is also hoped the buying club will enable better planning and forecasting throughout the supply chain.
Andrew Stubley, operations manager at Biwater, said: "I can see the benefits the buying club will bring to the supply chain."
Karen Geoghegan, procurement manager at Laing O'Rourke Imtech, added: "It will help strengthen partnerships among the consultants, suppliers and sub-contractors, as well as help deliver projects to budget."