3 December 2009 | Allie Anderson
United Biscuits has increased its annual outsourced procurement spend by 171 per cent to more than £170 million.
The move expands a deal signed in February with procurement outsourcing and consultancy firm 4C Associates (4CA). It will see 4CA manage more spend for the British multinational food manufacturer’s non-core categories including IT, telecoms, HR and professional services in the UK.
The outsourcing firm will also control more spend for logistics in the UK and Northern Europe on behalf of the giant, whose brands include McVitie’s, KP and Jacobs.
Kevin McGurk, operations services director at United Biscuits, said in a statement: “We decided to review our procurement contracts in the face of continued cost challenges in today’s climate and to ensure we had a good platform to increase our market share in a highly competitive market.”
He added that continuing to work with 4CA would deliver sustainable savings and improve service levels. “It is increasingly important for us to invest in our relationships with suppliers, while ensuring we can also achieve fiscal savings,” McGurk said.
Simon Smith, head of outsourcing at 4CA added: “The expansion of the scope of the relationship builds on the successful joint work we have completed during 2009 in spite of the challenging economic climate.”
As reported in SM, 4CA suffered a number of setbacks this year, including the resignation of managing partner Andrew Loken and reports that parent company Deutsche Post has been in discussions to sell its majority stake in the firm.