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BAA moves its procurement online
Driving down those supply costs...

By Kate Hanaghan

Published: Thursday 15 November 2001

BAA, the world's largest airport operator with revenues of more than £2.2bn, is moving all of its suppliers to an online procurement system.

All 1,500 suppliers have agreed to swap fax for browser in a move to drive down BAA supply chain costs from current level of £1.2bn.

BAA will be using software from Burns e-Commerce Solutions. The companies would not disclose the value of the deal.

In 1999, BAA was spending on average £92 per purchase order. The UK average is between £65 and £95. By streamlining its supply chain it has now reduced those cost to £19.

Tony Douglas, group supply chain director, said: "We are one of the best kept secrets in managing a large and diverse supply chain. All 1,550 of our suppliers have committed to convert by mid next year."

Since August of last year, the only way BAA employees have been able to make a purchase is electronically via a procurement system.

Douglas added: "This deal is the final link in our procurement-to-pay process."

If you're into e-procurement, read:
BA job cuts: contractors call for 'militant' action
http://www.silicon.com/a456080
MRO revenues go through the roof
http://www.silicon.com/a48826
Devil's Advocate: Private networks are just so passé
http://www.silicon.com/a48675
Goodyear ready to burn rubber in online deal
http://www.silicon.com/a48529
Why Ford won't break the bank with B2B
http://www.silicon.com/a47015
Dazed and confused: Understanding the B2B monster
http://www.silicon.com/a46810

To buy related reports or event tickets, click:
Report: IT Expenditure Assessment - Who is spending what on IT and why?
http://www.silicon.com/goto-ecc-reita
Report: E-Marketplace and E-Procurement Services assessment
http://www.silicon.com/goto-ecc-mgmt-emar
Event: Business Intelligence 2002 - Managing effectively in times of economic uncertainty
http://www.silicon.com/goto-ecc-evbi