7 April 2010 | Lindsay Clark
Pallet company CHEP has awarded a five-year procurement outsourcing contract to Xchanging.
Under the deal, the business services company will manage an annual spend of £75 million on behalf of CHEP Europe. The contract includes sourcing of non-core categories and a large proportion of procure-to-pay activities.
Xchanging aims to reduce overall non-core costs by helping to integrate and standardise procurement processes for the pallet and container pooling services firm’s business across the UK, France, Germany and Spain. It also plans to consolidate spend management across CHEP’s European businesses.
Marcelo Di Benedetto, sourcing and quality director at CHEP Europe, said: “Outsourcing our non-core procurement to a specialist such as Xchanging will provide us access to industry-leading expertise and global best practice in procurement processes and technology. We expect a number of benefits including increased efficiency and reduced costs. Our goal is to spend smarter and get the best value from our supplier relationships.”
CHEP operates in 45 countries, serving customers in a range of sectors. Its global partners include Procter & Gamble, Sysco, Kraft, Nestlé, Ford and General Motors. The company has more than 7,500 employees.
Xchanging manages annual indirect spend of more than £1 billion on behalf of large corporations.