Aerospace collective signs collaborative purchasing deal

26 August 2011

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26 August 2011 | Angeline Albert

Small aerospace companies in North West England will cut their purchasing costs with a £1.3 million collaborative buying project.

Members of the Northwest Aerospace Alliance (NWAA) are pooling their spend to secure better deals on categories such as utilities, stationery, transport and environmental expertise. The NWAA has signed the first of these joint contracts – to cut the cost of parcels and pallet movements - with logistics firm TNT.

Merc Engineering UK and turbine blade manufacturer ELE AdvancedTechnologies have signed up to the deal, which other members can also take advantage of.

The next collaborative contracts to be arranged will be for consumables, including non-technical engineering workshop supplies, and personal protective equipment.

Jon Hoyle, commercial director at Merc, said: “Transport is the first service being rolled out to Merc and already we have been offered very significant savings. As costs are ever increasing, the aggregated procurement offered through the shared service’s team is a welcome support to Merc Engineering UK and will help us to remain competitive.”

The project is being run in partnership with logistics firm Unipart, and is the £1.3 million is funded by the Northwest Regional Development Agency and the European Regional DevelopmentFund. The NWAA was formed to give small aerospace firms in the region a competitive edge by developing shared services, skills and innovation.

Martin Harrison, finance director at ELE Technologies, said: “Like many manufacturing companies, ELE Advanced Technologies is always looking for opportunities to drive its costs down. The shared services project has given us leverage and cost savings that we could never achieve on our own. We look forward to collaborating with NWAA and Unipart on the next categories.”

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