procurement and operational cost improvement
After an extended period of growth driven primarily by acquisition, the Group looks to use our wider resources to both improve purchasing terms with our major supplier partners, as well as improve our operational efficiency.
At individual Profit Centre level various KPIs are measured to cover service levels including stock availability. However, during 2019 the Group is developing a number of additional measures to be able to compare efficiency levels accurately between Profit Centres, and these will include such KPIs as overall cost per pick, cost per delivery (both in overall quantum and as percentage of sales), and number of suppliers for both stock and expense supplies, with an overall view to support the various cost improvement initiatives being undertaken.
- Under the leadership of the Chief Operating Officer, coordination of all purchasing activities operated by Profit Centres within each division
- Under the leadership of the Chief Executive Officer, an operating cost review steering group has been established to identify and implement short, medium and long-term initiatives to improve operational efficiencies across the Group
- Coordination of engineering resources under a single leadership team for a newly established Services division