Sourcing/Procurement News
Most Read
Most E-mailed
E-mail Article
Print Article
Greif Expands Procurement Outsourcing Relationship and Global Footprint with ICG Commerce
Industrial packaging specialist looks to procurement outsourcer to manage non-core spend in North America, Europe, Asia and Latin America as it continues drive for sustainable cost savings
Interview with Ron Brown, senior vice president of Global Sourcing & Supply Chain for Greif from ICG Commerce on Vimeo.
Philadelphia — December 15, 2009 — Industrial packaging specialist Greif, Inc. is set to continue its focus on driving sustainable cost savings as it inked a five-year contract expansion with ICG Commerce, the procurement outsourcing specialist, to manage all areas of non-core spend for Greif.
The new contract extends ICG Commerce's partnership with Greif, which began in 2004, and covers indirects, logistics, capital equipment and select direct materials across North America, Europe, Asia and Latin America.
"Procurement outsourcing continues to play a pivotal role in supporting Greif's growth and allowing us to remain agile in the changing economic landscape," said Ron Brown, senior vice president of global sourcing and supply chain for Greif. "In looking for new efficiencies and cost reductions, it was clear that fully engaging ICG Commerce on a global scale would drive greater control over Greif's expenditures."
Five years ago, Greif identified an opportunity to better leverage indirect spend being managed locally across more than 200 factories worldwide. Since then, ICG Commerce said it has helped Greif successfully reduce fragmentation and further expand the reach of the program to drive increased control over indirect expenditures.
The recent expansion marks a fourfold increase in the amount of spend ICG Commerce will help manage and increases the geographic scope to support all of Grief's global operations.
"With a vision of achieving world-class performance in spend management, we've recognized an opportunity to combine Greif's strong capability in procuring strategic, direct materials with ICG Commerce's indirect procurement expertise, market intelligence and infrastructure," Brown said. "Greif will continue to be world class in buying resin, steel and paper. For everything else, we will look to ICG Commerce to help drive sustainable savings across our global operations."
More manufacturers are leveraging procurement outsourcing as a way to drive measurable savings in under-resourced buying categories while continuing to focus internal efforts on optimizing direct supplies and raw materials purchases. Having already executed more traditional cost reduction approaches, manufacturing executives are looking to procurement outsourcing as the next generation of cost savings that can be reinvested in growth and expansion.
The new contract extends ICG Commerce's partnership with Greif, which began in 2004, and covers indirects, logistics, capital equipment and select direct materials across North America, Europe, Asia and Latin America.
"Procurement outsourcing continues to play a pivotal role in supporting Greif's growth and allowing us to remain agile in the changing economic landscape," said Ron Brown, senior vice president of global sourcing and supply chain for Greif. "In looking for new efficiencies and cost reductions, it was clear that fully engaging ICG Commerce on a global scale would drive greater control over Greif's expenditures."
Five years ago, Greif identified an opportunity to better leverage indirect spend being managed locally across more than 200 factories worldwide. Since then, ICG Commerce said it has helped Greif successfully reduce fragmentation and further expand the reach of the program to drive increased control over indirect expenditures.
The recent expansion marks a fourfold increase in the amount of spend ICG Commerce will help manage and increases the geographic scope to support all of Grief's global operations.
"With a vision of achieving world-class performance in spend management, we've recognized an opportunity to combine Greif's strong capability in procuring strategic, direct materials with ICG Commerce's indirect procurement expertise, market intelligence and infrastructure," Brown said. "Greif will continue to be world class in buying resin, steel and paper. For everything else, we will look to ICG Commerce to help drive sustainable savings across our global operations."
More manufacturers are leveraging procurement outsourcing as a way to drive measurable savings in under-resourced buying categories while continuing to focus internal efforts on optimizing direct supplies and raw materials purchases. Having already executed more traditional cost reduction approaches, manufacturing executives are looking to procurement outsourcing as the next generation of cost savings that can be reinvested in growth and expansion.
RSS Feeds
