Tuesday, February 09, 2010
Latest Procurement News
RELATED NEWS
- 'Black hole' widening in global defence budgets
08 Feb 10 - Defence procurement set to soar in emerging economies
01 Feb 10 - US HR buyers set for spending spree
01 Feb 10 - Analysis: The benefits of managing meetings spend
26 Jan 10 - Indian firms offered improved spend management
15 Jan 10 - Converteam improves global spend analysis
12 Jan 10
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KNOWLEDGE MANAGEMENT TAGS
"Spend Management"
Procurement synergies save Lloyds £34m
The forced merger of Lloyds Banking Group and HBOS has been making headlines this week for the spectacular £4bn loss that was announced earlier this week. But, if it wasn't for procurement, those losses would have been even worse.
According to the company's interim results, synergy savings by the procurement function resulted in £34m worth of savings in the six months to the end of June.
"Procurement is playing a key role in assisting the Group to achieve its integration synergy targets," the banking group's interim results statement said. "It has delivered £34 million of savings to the end of June through consolidating existing contracts, leveraging the spend of our enlarged group and removing duplication in the supply base."
Of course, this is just the beginning. The bank has identified savings from synergies and operating efficiencies of £1.5bn by the end of 2011 and £400m by the end of 2009.
"This will primarily be achieved by delivering the IT consolidation, a single and centralised operating model, along with excellent disciplined procurement and rationalised property portfolio," the bank said.
Procurement Tag - Spend Management
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