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O2 bucks trend with ambitious procurement expansion
Telecommunications giant Telefonica has handed O2 UK procurement a boost after announcing ambitious expansion plans.
The company is set to ramp up its procurement headcount by over a third in recognition of the value they have delivered to one of Europe’s biggest telecommunications businesses in recent years.
Under the plans, O2's procurement operation - which will expand from 37 to 51 people in the first stage of expansion - will be charged with influencing the company’s entire spend portfolio of £3.5 billion.
Speaking exclusively to Procurement Leaders, project leader Alastair Eadie, said that the reorganisation of the company’s procurement operation would help drive the cost savings and efficiencies needed in tougher economic times.
“This is a great story for UK procurement,” he says. “The board has recognised the great work that procurement has, and is doing. There’s a real desire to work more closely with Telefonica, and there’s a lot we can do in the direct space to drive syngeries in Europe and beyond.”
Procurement at O2 was previously organised on functional lines, with a category management team supported by a sourcing and commercial supplier management function.
In an effort to more clearly define lines of communication both internally and with Telefonica the oranisation will now be structured along core category lines with a technology sourcing team, a devices sourcing team – which will manage the group’s £900m handset procurement portfolio - and an upscaling marketing and procurement team.
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