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Johnson Matthey is sold on e-procurement

A Buck and Hickman product story
Edited by the Engineeringtalk editorial team Feb 12, 2004

BuckHickman InOne has delivered an e-procurement solution that enables Johnson Matthey sites to purchase up to 52,000 different industrial supplies for next day delivery via its branch network.

BuckHickman InOne has delivered an e-procurement solution that enables Johnson Matthey sites to purchase up to 52,000 different industrial supplies for next day delivery via its branch network.

The solution has reduced the cost of purchasing often low value items from an estimated GBP 25 per order to GBP 5 or less.

Online computer order points on the factory floor are used for purchasing and are subject to approval from supervisors who have a discretionary spending limit.

Any item over the spending limit is automatically referred upwards to the next authorisation level with links to the e-mail system to warn about approvals required and when orders have been placed.

Two sites use the Ariba hosted system.

Orders for the Royston site, home to four Johnson Matthey business units, are fulfilled from BuckHickman InOne's Luton branch, while the Dagenham branch fulfils orders for the company's Enfield site.

A punch out catalogue, which includes technical information and product photographs gives the workforce access to 2500 popular lines from BuckHickman InOne.

In addition there is a hosted catalogue, which simply lists a wider range of products.

All orders from the two sites for maintenance, repair and operations (MRO) supplies are ordered online via the Ariba system.

Comments senior buyer Howard Jarman: "Using the Ariba network has given us complete transparency in purchasing".

"Not only have we reduced the manpower and resource involved in buying often low cost items, but we also have access to far more information than before".

"Reports can break down spend by supplier, product, product group, manufacturing cell or even down to an individual's purchases".

"This information helps stock control and by eliminating the paper trail enables buyers for each business unit to focus more time on core business activities where they add maximum value".

"Before the system was implemented we had a stock inventory of GBP 5m on the Royston site alone, that has virtually been eliminated now to a level of just GBP 40,000.

This frees up space and cashflow".

BuckHickman InOne's national distribution centre automatically receives the online orders and picks and processes them for delivery to the local branch.

Each branch then makes a daily delivery to the Johnson Matthey site with the previous day's order.

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