British Steel has entered into a multi-million-pound partnership with IESA to revolutionise its engineering stores operations and purchasing processes.
The company has out-sourced its maintenance, repair and operating spares stores activities to IESA - global specialists in the procurement and management of indirect goods and materials.
IESA will now oversee tens of thousands of British Steel transactions a year in a move that will deliver both a modern and highly efficient service, and bring significant savings.
British Steel Deputy CEO Paul Martin said: “We’re continually improving our business and this partnership, with a specialist supplier like IESA, will bring major operational improvements.
“Given the sheer size of our company and the complexities of the steel manufacturing process, it’s vital we have a dynamic stores operation. The engineering stores cover more than 160,000 stock keeping units so the logistics behind it are immense and so are the benefits of a new, hi-tech system.
“Our new stores operation will help us become much more efficient while IESA’s expertise and buying power will enable us to make savings that can be reinvested in other parts of the business.”
The advanced stores system My MRO, which uses cloud-based technology, covers British Steel’s requirements for electrical and mechanical goods, custom made goods, drives and fluid power. It also relates to general consumables, paints & coatings, packaging goods and offsite repair of repairable goods. It does not include supplies like raw materials, workwear, fuel, oils and lubricants.
Under the terms of the agreement, 36 British Steel employees and contractors involved in the previous stores and associated operations in Scunthorpe, Teesside and Immingham have transferred to the employment of IESA.
IESA currently sources 1.1 million products, managing 145 stores at 213 locations across the world and CEO Glenn Timms said: “We’re delighted to be working with British Steel and to welcome the new employees to our business.
“Our approach incorporating efficient store operations, underpinned with the latest technology, is vital to many businesses like British Steel where timely repairs and maintenance are critical to the manufacturing process and we now work with more than eighty clients in this regard.
“We know that British Steel has already undergone significant changes and we’re proud to be delivering a market-leading service which will revolutionise the company’s engineering stores operations.”