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Procurement and technology services provider Xchanging has signed a three-year global contract with water supplier Severn Trent Services (STS).
The companies confirmed that Xchanging will be responsible for in excess of $100 million (£62.5 million) of indirect procurement spend.
The contract is for 13 indirect categories, and the key ones are IT and telecommunications, travel, facilities, freight/logistics, and transport and mobile quarry equipment.
The appointment marks Xchanging’s first contract in the utility sector. It will cover strategic sourcing, category and contract management services, and analytics across all of Severn Trent’s indirect procurement spend.
The contract will incorporate Xchanging's recent acquisition of MarketMaker4 in a $22 million (£13.75 million) deal.
Ian Dearnley, vice president of product management and global procurement at STS, added: “STS wanted to improve spend visibility and increase coordination in all areas of indirect spend.”