GBS Overview

In 2021, through our established central platform, we used our scale and agility to continue supporting every part of the Group. We used our expertise to deliver centralised services for procurement, finance and airport operations.

With our constant focus on delivering IAG’s Cost per Available Seat Kilometre (CASK) targets, we monitored, managed and simplified the supply chain; mitigated costs; and ensured the Group had a robust supply chain during a very challenging global environment. Our specialists delivered automation and innovation to drive industry-leading process improvements right across IAG.

We introduced the Integrated Support Centre leveraging new chatbot functionality and AI ticketing technology to better support employees and suppliers with their queries. The automation programme also accelerated to improve efficiencies in our financial processes leading to better performance and analytics.

We utilised our unique position as the hub of working capital activity for the Group, providing valuable insight and a constant overview.

2021 has been the year we defined and started to deliver on our four core transformation pillars:

  • Driving further synergies by leveraging the existing platform and onboarding additional services, including managing the critical Right to Fly services for British Airways and Iberia
  • Continuing the in-depth restructure of the Group's cost base to optimise unit costs; to partner with suppliers who share our values and ways of working; and to manage supplier performance
  • Delivering automation and analytics, while using our insights from around the Group to optimise the mix of onshore, nearshore and offshore work
  • Proactively monitoring any potential supplier risks to mitigate emerging issues, and leading on our supplier sustainability commitments

We continue to seek additional opportunities to leverage our established platform and deliver further synergies for the Group.

Key successes

GBS continues to bring notable successes Group-wide.

Key successes

In 2019, Group Procurement integrated the procurement platform into the new common finance system enabling enhanced streamlined processes and further synergies for the Group. These include simplification of the end-to-end supply chain from sourcing through to payments; a standardised workflow for all operating companies; and improved supplier spend analytics across the Group to identify potential savings. New digital tools have also been deployed to provide a more robust and automated approach to supplier relationship management. Non-fuel cost savings of more than €280 million were delivered across the Group in 2019.

In 2020 Group Procurement will continue to focus on streamlining the supply base to progress towards stability and effective Corporate Social Responsibility with the Group’s partners. It will continue to develop its key supplier relationships to deliver value to the Group.

GBS Finance continues to focus on the simplification, harmonisation and automation of processes to improve efficiency and constantly evaluates opportunities for further cost savings.