1 April 2010 | Helen Gilbert
Defence electronics firm Selex Galileo has outsourced its indirect procurement to Xchanging in a three-year contract worth £50 million.
Xchanging will manage an annual spend of about £17 million of the company’s UK operations. It will help the firm reduce costs in non-core purchasing by providing an improved procurement service and consolidating spend management.
It will be responsible for sourcing a number of categories including resourcing, learning and development, travel, protective clothing and office supplies, furniture, couriers and freight.
Nick Cramer, head of indirect procurement at Selex Galileo, said the outsourcing of certain non-core procurement categories is aligned with the overall strategy to improve purchasing across the business.
“Outsourcing procurement to a specialist such as Xchanging provides us with added drive and focus from industry-leading experts and also global best practice in procurement processes and technology,” he said. “Our goal is to spend smarter and constantly enhance procurement service and value.”
Richard Houghton, Xchanging’s chief financial officer, said: “Selex Galileo has an impressive global vision for greater collaboration across its spend. Xchanging will leverage its capabilities...to provide the best combination of people, processes and technology to deliver cost and efficiency benefits.”