05 October 2009 | Jake Kanter
Energy firm E.ON UK has asked its suppliers to cut costs and reduce carbon emissions. The call came from UK chief executive Paul Golby at a conference for 70 E.ON vendors last month.
Supply chain director Chris Lovatt told SM that working with suppliers to reduce costs was key to the firm securing future energy supplies and competitive prices for customers. He would not disclose E.ON's savings targets, saying this would "limit the size of its ambitions".
Lovatt said: "We want to challenge our suppliers and for them to challenge back, to help us identify and make changes to our operations, reduce costs and carbon while ensuring there is no adverse effect on our end customers, the environment or safety standards."
Vendors were also asked to measure and reduce their carbon footprints. E.ON has started work on cutting emissions by reorganising its delivery fleet to cover fewer miles. It is also replacing some business trips with video-conferencing.
Lovatt added that E.ON's global supply divisions want to become more aligned through sharing best practice so the company can secure better value from its ¤9 billion (£8.1 billion) annual spend.