Aluminium producer expects savings from purchasing system


Aluminium producer expects savings from purchasing system

Lindsay Clark

Anglesey Aluminium Metal aims to save between £50,000 and £60,000 a year with a new purchase-to-pay system from software suppliers Proactis.

The system has replaced a paper-based purchasing system at the aluminium producer, where staff had been filling out purchase request forms that would cascade through a management chain and eventually reach the purchasing department in a process that could take 11 days.

Now purchase orders could be placed on the same day they are raised in many instances, the company said.

Phil Bedford, senior accountant at Anglesey Aluminium Metal, said the software, which runs on existing PCs and required two new servers, would reduce the administrative burden and drive cost savings for the organisation by offering greater control and visibility over its indirect spend.

“Because we have complete visibility over all of our spend, our staff have become more accountable and maverick spend has been reduced,” he said. “Also, because they know the purchasing process is much more efficient they are less inclined to over order and waste money on ‘squirrel stocks’ where they keep extra stocks to avoid running out of essential items.”

Anglesey Aluminium was keen to keep costs down because the contract with its main electricity supplier ends in 2009 and it anticipates electricity charges higher than its current contract. Bedford said the Proactis software investment would contribute towards mitigating those cost increases.

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