Dallas and Philadelphia — January 9, 2007 — Kimberly-Clark Corp. has signed a five-year contract with procurement services provider ICG Commerce, outsourcing to the firm certain sourcing and supply management activities. Kimberly-Clark, a well-known producer of health and hygiene brands, said the move is part of its global competitive improvement initiatives, which were announced in July 2005. Other terms of the contract were not disclosed.
"This move will allow us to better direct our resources on innovation, brand-building and other capabilities that will drive long-term sustainable growth," said Ian Maginnis, Kimberly-Clark's vice president of Business Support Delivery. "By selecting ICG Commerce, Kimberly-Clark's sourcing and supply management staff will focus their expertise on such critical business purchases as raw materials and packaging supplies, while leveraging ICG Commerce's market knowledge, sourcing strategies and procurement experience to reduce costs and improve efficiency."
Under the contract, ICG Commerce will manage sourcing and vendors and process purchase orders for Kimberly-Clark's North American and European operations in the areas of maintenance, repair, operating supplies and contract services.
"Kimberly-Clark is clearly dedicated to enhancing its world-class operations and further improving its purchasing function," said Carl Guarino, CEO, ICG Commerce. "As a procurement outsourcing specialist, we will work closely with Kimberly-Clark to implement a program that will provide both process improvements and cost savings for the company."
Kimberly-Clark produces such brands as Kleenex, Scott and Huggies that are used by 1.3 billion people in more than 150 countries.
Additional Articles of Interest
- — Procurement business process outsourcing is a growing trend, but best practices for BPO success are still being written. For insights on how to ensure your BPO project meets its goals, read "Five Success Factors for Procurement Business Process Outsourcing," sidebar to the cover story "Rising to the Challenge of the Outsourced Supply Chain" in the October/November 2005 issue of Supply and Demand Chain Executive.
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- Has Procurement Outsourcing's Time Come?
- "Procurement Outsourcing Is Here to Stay"
- Procurement BPO: From "Baby Steps" to Boom
- Worldwide BPO Market to Reach $682.5 Billion by 2008 — IDC
— For more information on procurement business process outsourcing (BPO), see the following SDCExec.com articles:
— How are outsourcing and supply chain tasks such as purchasing and inventory management tied to "network-centric operations?" What is a network-centric operation? Read the SDCExec.com article "The Future of Supply Chain Management: Network-centric Operations and the Supply Chain" to find out.
— Is your company looking closely at procurement outsourcing, but doesn't quite know where to begin? These 10 steps are a good place to start for any finance professional who is studying this growing market. Read the article "Procurement Outsourcing: The 10 Things Finance Professionals Want to Know," an SDCExec.com exclusive.