Philadelphia, PA - April 21, 2008 - The Hertz Corporation (NYSE:HTZ - News) has signed a five-year contract with ICG Commerce, a leading procurement services provider, for procurement outsourcing services to support Hertz's broader efficiency improvement and reengineering efforts.
"Our objective is to be the lowest cost, highest quality, and most customer-focused company in the rental markets we serve. We are selecting service providers who will help us drive efficiency, quality and service improvements worldwide," said Mark P. Frissora, Hertz's Chairman and Chief Executive Officer.
John Thomas, Executive Vice President, Global Supply Chain at Hertz, added, "Partnering with ICG Commerce enables us to drive material savings across our indirect spend over the next five years, while increasing our focus on our direct expenses and other key supply chain opportunities."
Under the contract, ICG Commerce will provide comprehensive procurement outsourcing services for Hertz's North American and European operations. These services will help Hertz drive greater control over expenditures in buying categories including professional services, equipment and automotive, facilities, transportation, IT, benefits, and marketing.
"We chose the procurement specialist based on ICG Commerce's deep procurement expertise, strong track record of helping companies achieve aggressive bottom-line cost reductions and their understanding of our needs and goals," said John Thomas. "Working collaboratively with ICG Commerce allows us to more effectively deliver global, best-in-class procurement to support and grow our business."
In order to help Hertz achieve its procurement goals, ICG Commerce will provide access to a comprehensive infrastructure that supports sourcing, transaction management and category management across North America and Europe. ICG Commerce will leverage its partnership with Genpact (NYSE:G - News), drawing on the company's deep six-sigma experience and strong operational capabilities, to support procurement processing in Europe.
"We are proud to play a high-impact role in one of Hertz's key strategic initiatives," said Carl Guarino, Chief Executive Officer, ICG Commerce. "We look forward to working alongside Hertz to achieve their objectives and to demonstrate the significant value procurement outsourcing can bring to a company." |
