Global engineering and electronics company Siemens has been awarded the Buck & Hickman Supplier Relationship Award for its UK operating companies at the 2013 Brammer and Buck & Hickman Manufacturing Forum and Awards.
Emma Seddon, Paul Duncombe and Ian Vickerstaff of Siemens received the award from Brammer and Buck & Hickman managing director Ian Ritchie at the event held at the Concorde Runway Visitor Park in Manchester.
Siemens has many companies operating as separate entities in the UK, each of which previously sourced its own tools, consumables and PPE equipment. This resulted in numerous suppliers nationwide providing the same products, a costly way of operating which was not delivering best value for Siemens.
Buck & Hickman won a national contract through which it supported Siemens? global purchasing strategy by offering a single source of supply for all UK tools, consumables and PPE equipment. Meetings were held between Siemens and Buck & Hickman staff to discuss how Buck & Hickman could implement its value proposition and add value for Siemens.
For the first time in its UK history Siemens awarded a PPE, tools and consumables contract to one national supplier. Buck & Hickman is now the preferred single source supplier for all UK operations. Through implementing this contract, Buck & Hickman helped Siemens to deliver cost savings equal to 8.5% in 2013 and 7% the previous year and successfully reduced Siemens? supplier base. Siemens now purchases 94% of its 42,395 line items from 300 suppliers instead of 692.
The awards ceremony honours those companies with whom Brammer and Buck & Hickman have worked throughout the year. It presents an ideal opportunity to showcase examples of best practice, innovation and continuous improvement in maintenance spares procurement and management within the engineering sector.
?Buck & Hickman has successfully cut costs at Siemens by more than halving the number of suppliers it deals with in the UK,” comments Ritchie. “We recognised the need for preferred single source suppliers for all non-production factory supplies. This resulted in Buck & Hickman contributing to significant price reduction, cuts in consumption and numerous cost saving projects.?
