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23 August 2013 | Adam Leach
Global drinks manufacturer Diageo has signed a global procurement contract with procurement outsourcing provider Xchanging in a move designed to push out further inefficiencies from its supply chain.
Under the three-year deal, Xchanging will work as a ‘co-source’ partner in the maintenance, repair and operations category, covering its spend across Europe, Africa and North America. The support provided by Xchanging will be in addition to the internal procurement team at Diageo, which will not be affected as a result of the deal.
A spokeswoman for the drinks business told SM: “Under this agreement, Xchanging will work as extension to Diageo’s existing procurement teams and work in partnership on sourcing and process improvements. With a focus on streamlining and delivering value for Diageo, purchasing management and decision-making guidance will be provided by Diageo.”
Diageo, which owns many of the most well-known drinks brands in the world including Johnnie Walker, Smirnoff and Guinness, works with more than 3,000 suppliers.
In March the business announced a restructuring of its supply chain and procurement function to reflect a shift in market demand. The key aim of the reorganisation is to source half of its supplies from emerging markets such as China and Brazil.