John Lewis Partnership plc annual report and accounts 2013

Business review Review of performance (continued)

Partnership Services and Corporate

 Partnership Services, which was established in 2009 as the Partnership’s business services division to support John Lewis and Waitrose, made a significant contribution to our efficiency over the year helping to deliver benefits through better procurement of not-for-resale goods and services, and working capital improvements.

Partnership Services continues to deliver efficiency savings

The cost of our process operations was held flat with productivity improvements offsetting inflation and growth in like-for-like transactions. The breadth of the processes managed by Partnership Services for both Partners and suppliers continued to increase last year to include more standardised procurement of not- for-resale goods and services, simpler electronic invoicing, more accurate expense management and travel management services for Partners.

The level of investment in a number of significant transformation programmes has increased by over £20m, which is the primary factor behind the year-on-year increase in Corporate costs. These programmes are principally within our Personnel, information technology and Partners’ Counsellor’s functions, and are designed to increase both the efficiency and effectiveness of our support functions, and are central to our move to build a more agile and adaptable organisation.

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