“Aviation Equipment” holding has saved 86 million rubles in 2014 through procurement centralization

"We permanently conduct planning works on procurement process transfer to a specialized directorate”, said Maxim Kuzyuk, CEO of “Aviation Equipment” holding. “This approach has demonstrated its effectiveness at early phases and we plan conducting centralization further”.

Centralization enables consolidating orders from several companies and getting a better position in negotiations with suppliers at the expense of a larger volume. Costs of bidding procedures are reduced; in addition, market participants more willingly participate in tenders for bigger money that enables searching alternative suppliers. To improve quality and reliability of supplies, a special service has been created within the Procurement Directorate to search for alternative suppliers and develop them, taking into account the company’s objectives. Planned savings by the end of year should reach 118 million. In 2016, the Holding will centralize procurement for 4.1 billion from planned 10.1 billion and intends to save 125 million rubles.