Friday, September 03, 2010
Latest Procurement News
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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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