30 March 2011 | Lindsay Clark
Thames Water’s head of procurement Simon Rutter will be one of a few buying
professionals to remain at the company following the outsource deal with Efficio.
Most staff will be transferred to the outsource provider under
the £500 million annual agreement, but Rutter will remain with core
responsibility for managing the new contract.
As reported by SM, Thames Water outsourced both direct and indirect spend to
Efficio in a five-year contract.
Ian Bolger, head of supply chain at Thames
Water, said Rutter would become a “linchpin” to ensure the outsourcing
arrangement, believed to be one of the largest of its kind signed in the UK,
was meeting the business’s needs.
“He will do a lot of the stakeholder
management internally, but our category managers are very business-facing too –
that’s their core job. A lot of them sit in the business teams in the areas
that they manage,” he added.
Efficio would employ most of the remaining
Thames Water procurement staff under TUPE arrangements, but they would remain within
the Thames Water headquarters, Bolger explained. “They will walk the corridors
and do all the normal things that we do to integrate with the business,” he
Following a transformation programme to
involve procurement in every aspect of the utility firm’s spending, the team
had a very busy business plan for the next five years, which made the
outsourcing deal necessary, Bolger explained. “We don’t have the flexibility
and agility within the existing resources to be able to support the business as
much as it needs,” he said.
Thames Water aims to treble its procurement
savings targets by outsourcing, Bolger revealed, but he would not say how much
these were, or the value of the deal with Efficio.
The water supplier previously
outsourced all its procurement and logistics to Accenture in 1995, before
bringing sourcing back in house in 2002.