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25 May 2013 | Kathryn Manning
Thomson Reuters has implemented a two-year procurement programme to keep on-track with growth targets.
In an interview published in the latest edition of Supply Business, Nicolas Passaquin, vice president, global sourcing, head of Asia Pacific and Europe, Middle East and Africa, explained how procurement is contributing to the company’s performance with the full support of its board.
“I am leading on the organisational development-side of a programme called ‘2015 Business Excellence’. Under that, we are asking questions such as ‘How do we develop our people? Are we providing the services from the right place? Should we be looking at lower cost locations?’ We want to be able to deliver more value, with value being defined as cost reduction, bringing innovation and free cash flow.”
Jim Smith, CEO of Thomson Reuters previously said the company was entering 2013 with greater confidence after facing last year’s “headwinds”.
The organisation, a global information source for businesses and professionals, posted revenue increases of 3 per cent for the full year, although operating profit decreased by 5 per cent. The year started with the tough decision to cut 2,500 jobs in its core – and biggest revenue generating division – finance and risk, to improve profitability.
However, Passaquin said that procurement at Thomson Reuters is now ready to grow. “There are just over 160 people in the sourcing organisation at the moment and we will probably see an increase in those numbers. We benchmarked recently and discovered that compared with our peer companies, we actually have fewer sourcing staff. We aim to teach them more skills so they can move away from the more traditional RFPs, competitive exercises and become more like business partners.”
☛ The full interview with Nicolas Passaquin on Thomson Reuters' two-year procurement programme is in the March edition of Supply Business.
Supply Business is an international supply review published quarterly aimed at CPOs and senior stakeholders including CFOs, COOs and CEOs with an interest in procurement and supply operations. The magazine and online access is available on subscription. To subscribe click here or call +44 (0)20 7324 2746.