Three European divisions of US consumer products and food giant Sara Lee have completed a deal that will see e-procurement purchasing worth US$800m outsourced to ICG Commerce. By electronically gathering up to 80% of the group’s purchasing in Europe, the deal is expected to reduce costs at the food manufacturer by securing the best prices and improving productivity.
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Sara Lee, which is already working with a similar model in the US, explained that the pan-European version would focus on the company’s Douwe Egberts coffee division, its meat operations and its branded apparel divisions.
The purchasing and outsourcing director for Sara Lee Europe, Frank van den Heuvel, explained that the main challenge of the new system is creating the electronic catalogue. Gathering and inputting all the relevant data about goods and services is an enormous task.
