RAIL CONSULTANTS face a 15% drop in work after Railtrack announced a major reorganisation of its supply chains last week.
Railtrack head of supplier development Kristen Ross said the company would cut budgets for technical consultancy work as part of a plan to set up strategic supply groups with key suppliers in each sector. This would allow Railtrack to manage its supply base better and have a more consistent approach across its operations, he added.
'We have reduced our professional services budget at headquarters by 10% to 15%, ' said Ross. 'Because we do a lot of repeat business on a rolling basis, these need to be much more considered.'
The restructuring operation coincides with reorganisation within Railtrack. This will put major projects director Simon Murray in charge of Railtrack's entire infrastructure investment programme.
Below him will be contract and supply manager David Meek who moved from former operations director Chris Leah's division on Monday. Leah becomes safety and environment director (News last week). Major project general managers will also be answerable to Murray.
Murray will advertise externally for supply chain managers this week. A programme co-ordinator will also be appointed Railtrack's changes follow a survey of suppliers last year. Railtrack was shocked by the strength of the criticism, particularly regarding the inconsistent approach to suppliers. The restructuring aims to provide a common approach and to manage the use of suppliers better.
Ross revealed that Railtrack would hold a senior management conference with key suppliers in about two weeks.
Attendees will be expected to go back to their companies and develop complementary structures.