Proxima increases annual client spend under management by $3 billion at the half year
New contracts in the United States account for more than $1.8 billion of spend under management, following opening of Chicago office in the first quarter. Growth in UK and continental Europe continues.
LONDON & CHICAGO, 25 June 2012: Proxima, the leading procurement services provider, today announces that it has secured several major new client assignments during the first half of 2012, including significant new arrangements in the US, and several contract renewals.
Together, these new contracts account for $3 billion of business expenditure, signifying the continuing increase in importance placed on cost management by large, international businesses.
These new assignments see Proxima’s teams engaged across a number of industry sectors, categories and geographies from the United States through continental Europe and Great Britain.
These new assignments include:
- Full outsource multi-year arrangements for two major North American companies, which sees Proxima manage approximately $1.8 billion of business expenditure;
- Outsource projects for three manufacturers, covering between three and five years, with combined annual costs of approximately $700 million. Proxima’s category teams covering professional services, marketing, IT, HR, logistics, and some core manufacturing costs will be engaged and will oversee activities in 10 countries;
- A two-year indirect procurement support programme for an international packaging company, through which Proxima will manage approximately $200 million of spend, across HR, travel, professional services, IT and marketing categories;
- Three contract extensions for full service procurement outsource engagements, where Proxima takes full responsibility for the on-going management of a total of approximately $250 million of costs.
Principle objectives across these contracts include driving savings and implementing controls to ensure the cost base that is achieved is held to market in the long term, and positively changing cultural attitudes towards cost management.
Clients consistently appointed Proxima on the strength of the company’s ability to provide deep and broad category expertise and experience and implement strategies quickly, so that the impact of new buying behaviors are felt from the first day of engagement. Proxima opened its first North American office in the first quarter of 2012, so this represents some rapid intake of spend under management.
Matthew Eatough, CEO of Proxima, said:
“I am delighted to be reporting on such strong early results from our move into North America as well as a great start to 2012 internationally. These exciting new projects for prestigious, international brands underline the value we unlock for our clients, and demonstrate the benefits of tailoring what we do to meet the needs of each individual business with which we work.”
“The continued growth in our client portfolio represents the increasing importance placed on cost management by many businesses, particularly when costs are being squeezed elsewhere in their organizations. Our approach is centred around an understanding of where and how costs are being managed throughout each business and the development of initiatives that directly support their overarching objectives."
Proxima’s client portfolio includes 3i, Activision Blizzard, BDO, BG Group, British Airways, Prudential, Universal Music and Wm Morrison Supermarkets. The company has recorded double digit percentage revenue growth over the past five years, principally as a result of the implementation of increasing volumes of longer term, outsourced solutions.
For additional comments, please contact:
Tom Lawrence / Chris Gayner
FTI Consulting, for Proxima