Aerospace buying scheme begins to take off
A SCHEME designed to help smaller companies supplying the aviation sector to cut procurement costs for everyday items is starting to take off.
The £1.3m Shared Services project, which is being run by the North West Aerospace Alliance, has signed its first two companies.
Funded by the North West Development Agency and the European Regional Development Fund and run in partnership with logistics firm Unipart, the project will allow NWAA members to work together to improve competitiveness by pooling their purchasing power and secure better deals on everything from utilities, stationery and transport to strategic services such as quality and environmental expertise.
The first two members are Merc Engineering of Barrowford and ELE Technologies of Colne,. The pair have signed up to the Transport Service, the first element of the Shared Services programme to be launched.
This element of the project leverages a deal with logistics giant TNT to reduce the cost for members, initially for UK parcels and pallet movements.
In September, the second element of the Shared Services will be launched, focusing on driving down costs on products such as non-technical engineering workshop supplies and personal protective equipment.
Jon Hoyle, commercial director at Merc Engineering, said: “Merc Engineering is delighted to be partnering with NWAA and Unipart on the Shared Services project. Transport is the first service being rolled out to Merc and already we have been offered very significant savings.
“We look forward to working with the Shared Services team shortly on the Consumables category. As costs are ever increasing, the aggregated procurement offered through the Shared Service’s team is a welcome support to Merc Engineering UK and will help us to remain competitive.”
Martin Harrison, finance director at ELE Technologies, said: “Like many manufacturing companies, ELE Advanced Technologies is always looking for opportunities to drive its costs down.
“The Shared Services project has given us leverage and cost savings that we could never achieve on our own. We look forward to collaborating with NWAA and Unipart on the next categories.”
Paula Stell, Shared Services manager for the NWAA, added: “We believe this programme is unique in the aerospace industry, and has the potential to generate significant savings for the companies involved.”
