Avasant Acquires CEMEX Vendor Governance Captive
Avasant and CEMEX today announced the completion of Avasant’s acquisition of CEMEX’s Vendor Management Office operations in Monterrey, Mexico. The deal will initially involve CEMEX outsourcing its vendor contract management operations to Avasant, but the outsourced operations will ultimately expand to serve other Avasant clients as well.
This transaction expands Avasant’s existing Vendor Management as a Service (VMaaS) capabilities, adding to existing centers in Virginia, India, and Trinidad & Tobago, covering five time zones. The new center is expected to deliver $10 million to $25 million in services over seven years as Avasant centralizes Vendor Management from other regions to Monterrey.
“We are thrilled about taking our relationship with CEMEX to the next level,” said Avasant CEO, Kevin S. Parikh. “And, we are excited to support the Monterrey community and our new employees, with a full package of enhanced benefits and career opportunities.”
Vendor management refers to the final stage of the supplier life cycle, after the sourcing strategy is established, the supplier selected, the contract signed, and the services transitioned to the new service provider. The vendor management phase then governs the ongoing delivery of services under the contract, to ensure that all parties fulfill their commitments, measure the results, and take corrective action when needed.
Avasant’s VMaaS offering is powered by its AvaSense™ toolset, which is available on several platforms, including as a standalone SaaS system or as a ServiceNow™ add-on. This true SaaS platform gives vendor management professionals access to real time data, contract repositories, document management, dashboards, analytical tools, and process flows that enable effective management throughout the entire sourcing contract lifecycle.
According to Parikh, the deal is not just about cost savings for our customer. The objectives are to consolidate and optimize vendor management while improving customer/supplier relationships. It is also about implementing best practices for vendor management and increasing the career opportunities for all team members. Ultimately, the goal is to create a global center that better meets the growing demand for VMaaS services.
“Under Avasant management, we expect the Monterrey facility become a center of excellence for vendor governance to streamline and optimize all vendor services and provide expanded career paths for employees,” said CEMEX Maher Al-Haffar, CFO. “With over $80 million a year in business transformation services across over 100 suppliers globally, we need this center to ensure that the value from those deals is delivered.” The transition, which began in October 2021, is expected to be completed by the end of January 2022.
Avasant is a leading management consulting firm focused on translating the power of technology into realizable business strategies for the world’s largest corporations. Specializing in digital and IT transformation, sourcing advisory, global strategy, and governance services, Avasant prides itself on delivering high-value engagements through industry-focused innovation and flexible client-based solutions.
Our seasoned professionals have an average of 20 years of industry-honed expertise, having conducted 1000+ engagements in over 50 countries. Avasant’s next generation consulting and advisory methods have made it the top-ranked firm in its class, with recognition from numerous organizations, including: IIAR, Vault, NOA, IAOP, and Wall Street Journal.
Avasant’s engagement in the global market has inspired a strong commitment to community and purpose. Avasant Foundation supports technology and skill development programs to create employment opportunities for youth across Africa, Asia, the Caribbean and Latin America.
For more information, visit https://www.avasant.com.
CEMEX (NYSE: CX) is a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. CEMEX is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies. CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. For more information, please visit: www.cemex.com
For Avasant inquiries contact:
+ 1 868 7197681
For CEMEX inquires, contact:
+52 (81) 8259-6666