Group led excellence programmes are in place to target specific areas where we see an opportunity to rapidly make efficiency gains by ensuring common standards and ways of working across JM. A group led approach enables us to deploy best practice quickly and effectively across our operations.
Our focus on improvements, such as those delivered through our Manufacturing Excellence and Procurement Excellence programmes, are helping us adapt to new and changing markets. By expanding our programmes further, these long term investments across the group will bring many more benefits in the future.
Our global manufacturing operations create highly specified physical products for our customers. We manufacture efficiently and responsibly to drive economic and environmental performance and have programmes in place to optimise our manufacturing assets. In addition, we invest in our manufacturing capacity to meet customers’ future demand and have the ability to flex our cost base if our markets slow.
Manufacturing Excellence, which has been in place since 2012, encourages a continuous improvement culture to enhance the efficiency and long term profitability of our manufacturing operations. Progress is measured against ten criteria. The highest performing sites can work towards Silver, Gold or Platinum levels of status. Since 2012, over £100 million in savings have been delivered collectively by sites that have achieved those levels.
We have activated a Procurement Excellence programme with the goal of saving more than £60 million over the next three years.
Procurement is a key global activity and by managing it with a strategic and category led approach, significant savings can be achieved. Professionalising procurement within JM not only reduces cost, but it also means that we manage our suppliers better, which has many additional benefits, including reducing supply chain risk. We purchase state of the art equipment which meets the latest environmental, health and safety standards.