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21 July 2011 | Angeline Albert
PepsiCo is outsourcing some of its procurement operations in Australia to benefit from external expertise in buying office equipment and transport services.
The Australian arm of the food and drinks giant has given the Portland Group a three-year contract to manage the procurement of freight and local distribution services as well as office equipment and provide ongoing spend analysis services in those categories.
Michael Trinnie, procurement director ANZ for PepsiCo, said: “Partnering with Portland Group expands our procurement capabilities with resources, processes and systems that we expect will enable PepsiCo to achieve a substantial improvement in productivity over the next three years.”
Purchasing specialists at Portland will implement a category sourcing strategy for AUS$50 million (£33.2 million) of spend.
Sue Woodall, managing director of procurement services at Portland Group said: “Our team will work closely with PepsiCo’s procurement team and stakeholders to design and implement category sourcing and demand management strategies.”
Portland’s agreement with PepsiCo is one of a number of managed services contracts it has with the Australian arm of the company.
Gavin Solsky, Portland Group CEO, said: “This is further recognition that companies in Australia are following overseas trends to leverage external procurement services to drive ongoing, sustainable benefits for their organisations under longer-term engagement models.”