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1/16/2003



Rail News: Rail Industry Trends

Watco Cos. to centralize purchasing under five categories


Beginning Feb. 1, the Watco Cos. plans to implement a commodity-centralized purchasing plan under which five purchasing teams will buy materials in the following core categories: locomotives, rail cars, track, switching and general.


In the past, Watco divisions purchased materials for their individual areas and rarely communicated with other buyers purchasing similar materials, said Corporate Purchasing Manager Dave Gromer in the company's January newsletter.


As a result, Watco used many vendors, paid different prices and obtained varying levels of quality for the same materials.


"With the ability to improve our synergies between locations and divisions, [we'll] leverage our total spend with approved vendors, which will provide us with the quality we demand at a reasonable price," said Gromer.


Watco also plans to implement a uniform part-numbering system to make it easier for purchasers to order, maintain inventory, and track usage of the company's more commonly used items.



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