US food giant outsources indirect spend

14 April 2010

14 April 2010 | Nick Martindale

Kraft Foods has outsourced its indirect procurement operations in North America to Capgemini in a long-term agreement.

The French-based consultancy revealed this week that it will handle all strategic sourcing and spend management of a wide range of purchasing categories in the region, using its new on-demand e-procurement system.

The deal is the first major contract win for Capgemini since its acquisition of procurement technology provider IBX in February, which saw the Swedish firm’s software-as-a-service e-procurement technology combined with Capgemini’s business process outsourcing platform.

Hubert Giraud, head of Capgemini’s business process outsourcing division, said: “This will deliver spend savings, processes improvement and change management to Kraft Foods. These services will streamline their procurement operations and support their goal of sustainable performance.”

In February Kraft Foods completed its takeover of Cadbury as it sought to consolidate its position in the UK confectionery market.

Other notable brands include Terry’s Chocolate Orange, Terry’s All Gold, Toblerone, Kenco coffee, Philadelphia and Dairylea.

Capgemini handles spend of more than €12 billion (£10.6 billion) from 10 centres across the world.

Supply Management predicted two months ago that the two would sign a deal together.

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