Carillion cuts supplier base
Construction services company Carillion, which is based in Wolverhampton, is cutting its supplier base from 25,000 to 5,000 to save £140m a year by 2013. Carillion's Step Up plan has already saved £42m and the group is now using electronic auctions for some products and services.
Carillion is also set to move to an electronic supplier invoicing system to save a further £86m in 2011, it has been revealed.
The company, which employs 50,000 across the world including 800 in Wolverhampton, spends £3.5bn with suppliers each year.
Carillion is reportedly ranking suppliers on percentage discounts offered on volume contracts.
Carillion is one of 34 “second tier” central government suppliers to have started discussions with the Cabinet Office about efficiency savings.
But the company is currently bidding for £1.7bn of local government contracts and looking at other deals worth £2.5bn.
