Print group outsources £150m indirect spend

28 February 2008
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28 February 2008 | Paul Snell

De La Rue, the security printer and paper manufacturer, has outsourced its worldwide indirect procurement to 4C.

Under the deal, 4C will control an estimated £150 million of indirect spend in the UK, North America and Europe, including the purchase of IT, HR, telecoms, property and facilities management, marketing and print and logistics. The size of the deal was not disclosed.

Andrew Vaughan, group procurement and supply chain director at De La Rue, said: "This appointment will allow us to focus on our core competencies and deliver greater value to the company."

A team from 4C works full-time at the De La Rue offices on areas such as sourcing, category management and implementing new technology.

Andrew Loken, managing partner and head of 4C's outsourced procurement services practice, said the firm would draw upon its experience with other clients to help achieve better deals for De La Rue. "The most value comes from the knowledge share with clients and getting the right benchmarks," he added.

He also said that pooling spend with 4C's other clients, totalling about œ1 billion, would only be a limited benefit on a number of commodities. There are also plans to examine the demand side of the indirect operation and build relationships within the group.

In addition, De La Rue intends to see if any of the processes and reporting introduced on the indirect categories can be transferred to its direct spend, focusing on the similarities between the two categories rather than the differences.

SMfeb2008

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