News
Xchanging and Boots sign seven-year £400 million outsourcing contract
31 May 2005
LONDON , 31 May 2005 - Boots, the health and beauty retailer, has appointed Xchanging, the leading business processing services company, to manage part of their indirect spend. Xchanging will be responsible for elements of expenditure in travel, marketing, resourcing, facilities management and workplace services. The contract, which will run for seven years, will see Xchanging manage an annual spend of about £58m on Boots’ behalf.
Within this contracted spend, Xchanging will have exclusive responsibility for engaging and negotiating with suppliers, in order to drive through consistent processes and policies, and deliver a lower cost profile.
Julian Coles, Director of Boots Sourcing and Purchasing said, “We have partnered with Xchanging in order to benefit from their proven methodology and procurement skills, to deliver efficiencies that allow us to offer our customers even better value.”
Xchanging will also manage the transactional procurement activity, such as order raising and invoice processing within Boots Operational Processing Centre (OPC) in Nottingham. The OPC manages an annual £800 million worth of spend. The contract gives Boots a guaranteed price reduction over the life of the contract.
David Rich-Jones, Managing Director of Procurement Services at Xchanging , said, “We are delighted to be working with Boots. Our expertise and purchasing power will guarantee substantial and immediate benefits to Boots’ bottom-line. This partnership reinforces and broadens Xchanging’s position as a leading player in the procurement services marketplace.”
David King, Boots Head of OPC, said, “We selected Xchanging because of their capability, approach to relationships and their track record of success.”
Xchanging
Alistair Lamb
Head of Corporate Communications
34 Leadenhall Street
London , EC3A 1AX, UK
+44 (0) 7801 628699
alistair.lamb@xchanging.com
Media Relations
Ross Gow
Cubitt Consulting
30 Coleman Street
London, EC2R 5AL
+44 (0) 20 7367 5100
ross.gow@cubitt.com
About Boots
Boots is the UK’s leading health & beauty retailer and with about 1400 stores is one of the best known names in the UK. Boots employ 68,000 people, own world famous brands and sell their products in 130 countries. Their commitment to serving customers means they are constantly offering fantastic products, at great value, through expert people.