Hertz outsources indirect purchasing

24 April 2008
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25 April 2008 | Paul Snell

Vehicle rental firm Hertz has outsourced its indirect procurement to ICG Commerce.

The company made the move to boost efficiency and make cost savings. Non-core spend categories covered by the deal include professional services, marketing, transport, IT, equipment, automotive and facilities.

Although the size of the deal was not revealed, the amount of spend ICG will manage is between $750 million and $1.25 billion (£380 million to £633 million).

The deal will also involve Genpact handling procurement processing, such as accounts payable and purchase-to-pay transactions, as part of the Indian company's partnership with ICG.

John Thomas, executive vice-president, global supply chain at Hertz, said in a statement: "Partnering with ICG Commerce enables us to drive savings across our indirect spend over the next five years while increasing our focus on direct expenses and other key supply chain opportunities."

Before joining Hertz in September 2007, Thomas was head of outsourcing at print and publishing company RR Donnelley.



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