Boots signs £400m outsourcing deal

Health and beauty retailer Boots has signed a seven-year £400m deal to outsource part of its back-office operation.

Under the terms of the deal, announced today, services firm Xchanging will be responsible for elements of Boots’ expenditure in travel, marketing, resourcing, facilities management as well as workplace services.

The contract will see Xchanging manage an annual spend of about £58m on Boots’ behalf.

Xchanging will also manage the transactional procurement activity, such as order raising and invoice processing within Boots Operational Processing Centre in Nottingham.

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The OPC manages an annual £800m worth of spend. The contract gives Boots a guaranteed price reduction over the life of the contract.

Julian Coles, director of Boots sourcing and purchasing said: “We have partnered with Xchanging in order to benefit from its proven methodology and procurement skills, to deliver efficiencies that allow us to offer our customers even better value.”