United to cut costs

Posted on 15 Nov 2010 by The Manufacturer

The North West Aerospace Alliance has signed a contract with logistics supplier Unipart to provide regional aerospace companies with cost-cutting shared services.

The £1.3 million two-year contract will officially start early next year, with NWAA members cooperating to improve their purchasing power and secure better deals.

The project will be supported by a purpose-made, ‘one-stop shop’ website, through which companies will be able to order goods online from a number of suppliers, increasing purchasing efficiency.

The contract is part of the work of the Aerospace Supply Chain Excellence Programme 2 (ASCE 2), launched last year by the NWAA with £6.5 million funding from the Northwest Regional Development Agency (NWDA) and the European Regional Development Fund (ERDF).

Setting five priorities (skills provision, innovation, commodity groups, extended enterprise, and shared services), ASCE 2 aims to secure a competitive base of world-class SMEs in the North West aerospace sector.

Paula Stell, shared services manager for the NWAA, said the project, which will be managed by Unipart, will help keep the North West supply chain world competitive.

“Large corporations or public sector bodies often share services, but we are bringing together separate companies all with common needs. The purchasing power of a group of companies will be far greater than a single member of the supply chain, and we expect there to be considerable cost savings available for those involved,” she said.

Graham Jackson, managing director of Unipart Rail-Manufacturing and Infrastructure, added: “The objective of the NWAA Shared Services Team is to drive excellence within the North West Aerospace Industry through the development of high performance procurement initiatives.”