US firms extend procurement outsourcing deals

8 October 2007
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09 October 2007 | Paul Snell

Two US-based manufacturers have renewed their procurement outsourcing deals with ICG Commerce.

Tyre maker Goodyear and oil and gas equipment supplier Cameron have both extended their agreements with the provider.

Goodyear has renewed its contract with ICG for three more years to cover all indirect spend in its North American tyre business. The deal continues to provide sourcing, category management and purchase-to-pay processing for the firm.

The original deal signed between the two firms last year intended to save Goodyear $1 billion (£491 million) by 2008, and allow buyers to focus more on strategic direct spend (News, 2 March 2006). Outsourced spend included transportation and distribution, maintenance, repair and operations (MRO), packaging, energy, and marketing services.

Cameron's five-year extension will now cover all of the firm's indirect procurement and logistics spend. "We saw procurement outsourcing as the most cost effective solution to help us maximise savings," said Jill Efford, head of indirect procurement at Cameron.

ICG took over some parts of the firm's indirect procurement in 2004, focusing on MRO and services spend.

Both firms said the aim of the extensions was to create cost savings and become more efficient. The size of either deal was not disclosed.


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