which are based on working more closely together as a group so that SIG's whole is greater than the sum of the parts.

  • Category management now embedded within SIG and is business as usual
  • Delivered £22.7m net cumulative savings from Strategic Initiatives to date, mainly sourced from procurement
  • Targeting additional £10m efficiencies in 2016 and further savings thereafter
  • Group Procurement Director appointed for the first time in the Group's history
  • Appointed new team with experience of construction sector and other industries
  • Reviewed current supply chain model
  • Two-step strategy with ultimate goal of delivering £50m savings
  • First step: move to regional hubs utilising existing network
  • Second step: roll out Regional Distribution Centres across the Group
  • Defined as products which are own label or where SIG controls the design, fabrication or component assembly
  • Typically higher margin than SIG's distribution businesses
  • Currently accounts for 18% of Group sales
  • Target to double that proportion as a percentage of sales by 2018
  • Air Handling and Offsite Construction are important growth drivers within this category