GERMANY. Wella has appointed Procter & Gamble (P&G)’s subsidiary in Switzerland as its purchasing agent. As part of the agreement (which is initially for five years), P&G will create a purchasing organisation comprised of resources from both companies.
From 1 July, Wella will source a major part of its raw materials, packaging materials and goods and services through this new P&G Global Purchasing Operation. Central purchasing activities at Wella’s head office in Darmstadt – and the purchasing section of its Cologne-based fragrance subsidiary Cosmopolitan Cosmetics – will be switched to the new division. However, the purchasing of primary products, materials and services for areas representing Wella’s core competencies is to remain in-house and will continue to be handled from Darmstadt.
Almost all the employees affected by the move will be offered continued employment at either P&G or Wella, according to the company.
In time, it is expected that the new organisation’s remit will be expanded to include Asia, Australia, North and Latin America.
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