Airline crisis sends BA after quick supply chain savings

The global crisis in the airline industry after the terrorist attacks on the US has forced British Airways to revamp its supply strategy to make immediate savings.

Only last year, the airline formed a strategic sourcing programme that aimed to reduce procurement spend by £177 million, or 5 per cent, by 2002. Central to the strategy was a division of supplies into 45 product categories, to be managed across the 150-strong buying team.

Jonathan Counsell, procurement strategic general manager, told SM that the events of 11...

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