Source : Procurement Leaders
The creation of a shared services centre at UK construction and engineering company Balfour Beatty has helped it to offset a decline in margins.
The centre, which employs 230 staff and provides back-office services to eight of the its operating companies which, together, accounts for 50% of its UK revenue, or £3bn.
While the creation of the group was focused on providing transactional accounting and payroll services, it has increasingly taken on procurement responsibility and was responsible for £300m of spend in 2011. Operational cost savings reached £15m, the company said in a statement.
"Our ongoing programmes to achieve cost efficiency and to recycle capital in our investments business were successful in 2011, and we plan to accelerate them,” said chief executive Ian Tyler.
“We have confidence that these programmes will underpin performance. This should ensure that we make progress in 2012.”