New partnership will save British Steel tens of millions of pounds

By Scunthorpe Telegraph | Posted: 19 Dec 2017

A cost-saving measure will see the equipment and clothings stores on the Scunthorpe British Steel works out-sourced from January.

Back in profit British Steel reckons the transfer to the Warrington-based firm of Integrated Engineering Stores Associates (IESA) will save tens of millions of pounds, helping to improve cash flow.

ISEA which was founded in 1892 has seen annual turn-over increase from £1 million to £142 million in the past 12 years.

The company deals with 20,000 suppliers and its bulk buying power enables it to make savings.

The out-sourcing deal will also be introduced at the British Steel sites in Teesside and Skinningrove and will cover more than 160,000 stock keeping units.

British Steel chief executive Peter Brenscher told the company's on-site newspaper "Steel Matters": "We're continually improving our business and this partnership with a specialist supplier like ISEA 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.

"Our new stores operation will help us become much more efficient while ISEA's expertise and buying power will enable us to make savings that can be reinvested in other parts of the business."

Read more: Today's main headlines from Humberbusiness.com 



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