Better buying helps BT cut costs by £900 million

Telecoms giant BT is the latest firm to credit procurement for cutting costs during difficult economic conditions.

In the company’s second quarter results for the three months ended 30 September, BT said it was making good progress with cost reduction efforts, having already saved more than £900 million of its £1 billion target for 2009/10. It now expects to save at least £1.5 billion by the end of March next year.

BT reported a 6 month profit of £547 million: Cost reduction of £900 million p.a. has clearly had a massive impact on the company’s profitability. Cost reduction can significantly boost profitability, especially in the current climate – no matter how strong the firm.

Article by By Jake Kanter – Supply Management.com.