Xchanging and Optimum Procurement announce outsourcing contract wins

7 January 2015

Outsourcers Xchanging Procurement and Optimum Procurement Group have signed new deals to provide purchasing services to a logistics company and a facilities management provider respectively.

Xchanging Procurement has won a three-and-a-half year contract with Brambles to strengthen its procurement capabilities and drive spend efficiencies.

Serving consumer goods, dry grocery, fresh food, retail and general manufacturing supply chains in more than 50 countries, Brambles specialises in pooling unit-load equipment and the provision of associated services.

Its contract with Xchanging includes a co-sourcing agreement to help integrate and standardise procurement processes for indirect procurement in Brambles’ businesses across six global regions. For the last five years, Xchanging has provided procurement services to Brambles’ subsidiary CHEP Europe.

“Brambles has set out to improve strategic and tactical procurement globally,” said Pranil Vadgama, vice president, global procurement at Brambles. “An important factor in our decision to partner with Xchanging was its delivery model.”

Chirag Shah, executive director, Xchanging Procurement, added that the contract is a “significant win” for Xchanging.

Optimum Procurement Group has signed a five-year contract with OCS, during which it will manage more than 65 spend categories throughout OCS’s supply chain, including catering food and equipment, horticulture, temporary labour and utilities. The contract award follows OCS’ decision to outsource vehicle fleet management to Optimum in 2013.

It will focus on making incremental supply chain efficiencies through improved cost management, reduced supply chain risk and sustainable sourcing practices.

“The ability to embed a professional procurement capability that adds significant and sustainable value across OCS is an integral part of our commercial strategy,” said Peter Goodliffe, support services director at OCS.

“The initial phase of engagement has good momentum and we are already seeing added benefit beyond cost reduction in key areas such as supplier rationalisation and contract compliance.”

Peter Rushton, chief executive, Optimum Procurement Group added that the win “demonstrates the strength of our delivery credentials in the mid-market procurement services sector”.

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