L'Oréal signs procurement services contract
To manage a significant portion of indirect spend on behalf of LOréal, making this the largest procurement contract by spend for Xchanging
To manage a significant portion of indirect spend on behalf of L’Oréal, making this the largest procurement contract by spend for Xchanging
As part of the contract, Xchanging said it will manage a significant amount of indirect procurement on behalf of L’Oréal across five countries, including the UK, France, Germany, Italy and Spain.
Xchanging will operate on a co-sourcing basis, working alongside L’Oréal’s purchasing team to streamline purchasing processes and improve overall quality and cost.
Making indirect service pay
The contract spans various categories of indirect spend including: information technology and telecommunications, facilities management, human resources, light transport and logistics supplies, travel, industrial supplies & services, utilities and laboratory supplies. Xchanging will also provide procurement management activities including reporting, supplier and contract management.
Denis Royer, Xchanging Procurement Services Europe managing director, said the contract had been won a rigorous competitive process. The division manages annual indirect spend of over €4 billion on behalf of large corporations and services customers across a range of industries globally.
L’Oréal has a presence in over 130 countries, with 67,500 employees world-wide. Its brand portfolio includes: L’Oréal Paris, Garnier, Maybelline, Soft Sheen Carson, Matrix, Redken, L’Oréal Professional, Kérastase, Vichy, Diesel, Inneov, La Roche-Posay, Lancôme, Biotherm, Khiel’s, Shu Uemura and Armani, Cacharel and Ralph Lauren fragrances. The company acquired The Body Shop in 2006.