Xchanging’s procurement processing platform to drive efficiencies and reduce costs in non-core procurement for SELEX Galileo
LONDON, 31 March 2010 SELEX Galileo, a leader in the defence electronics market has signed a three year contract with Xchanging plc (UK:XCH 194.30, -0.10, -0.05%) , one of the largest and fastest growing global business processors. The contract will see Xchanging manage an annual spend of circa GBP 17 million on behalf of SELEX Galileo’s UK business.
In providing an enhanced procurement service to SELEX Galileo operations in the UK, Xchanging will consolidate spend management and help reduce overall non-core procurement costs. As part of the contract Xchanging will be responsible for sourcing a number of spend categories including resourcing, learning and development, travel, protective clothing, office supplies, furniture, couriers and freight.
This contract enhances Xchanging’s position as the leading indirect procurement services provider to the defence industry.
Commenting on the deal, Nick Cramer, Head of Indirect Procurement, SELEX Galileo said, “Outsourcing of certain non-core procurement categories aligns with our strategy to improve procurement across the business. Outsourcing procurement to a specialist such as Xchanging provides us with added drive and focus from industry-leading experts and also global best practice in procurement processes and technology. Our goal is to spend smarter and constantly enhance procurement service and value.”
Richard Houghton, Chief Financial Officer, Xchanging added, “SELEX Galileo has an impressive global vision for greater collaboration across its spend. Xchanging will leverage its capabilities for SELEX Galileo Ltd to provide the best combination of people, processes and technology to deliver cost and efficiency benefits. This partnership will expand Xchanging’s procurement services presence. We are delighted to be the procurement processor of choice for SELEX Galileo Ltd.”
Xchanging manages annual indirect spend of over GBP 1 billion on behalf of large corporations and services multi-sector customers across a range of geographies and industries. With high-calibre procurement category experts and world- class technology, Xchanging offers a complete suite of services from sourcing-to- pay services for procurement. Xchanging has been recognised as a tier one Procurement Services provider globally by the Everest Research Institute.