Chain IQ is to take over UBS’s operational, tactical and strategic procurement as well as the majority of the staff employed in this area, and is to open itself up to additional client segments. As an independent, internationally active company based in Switzerland, Chain IQ offers comprehensive end-to-end procurement solutions for Swiss and international companies in the financial sector and other areas. Clients benefit from significant cost savings, which are achieved, among other things, through efficiency gains, economies of scale and the bundling of purchase volumes.
(Zurich) 15.11.2013 – Under a multi-year agreement concluded between Chain IQ and UBS, Chain IQ has been appointed to provide procurement services for UBS in a total of twelve countries. Chain IQ will take on the majority of the 210 employees who currently work in UBS’s Supply and Demand Management (SDM) unit. With the decision by UBS’s Group Executive Board to award Chain IQ the contract for its procurement activities, the bank is implementing its announcement made at the end of 2012 to transfer SDM into an independent unit, resulting in a new offering in the market for procurement solutions.
This UBS spin-off will start in the first quarter of 2014 and will commence full operational activities in the second half of the year. Chain IQ is based in Switzerland and has branches in London, New York and Singapore. Over time, it will adapt its geographical presence so that future clients can be provided with the best service. The nomination process for the post of the CEO has been completed; the name will be announced in the coming weeks. The nomination processes for the members of the executive board are currently underway. Chairman of the Board of Directors and lead investor of Chain IQ is entrepreneur Claudio Cisullo.
New market offering attracts considerable interest
Chain IQ provides an offering that is new to the market in this form. It combines both operational and strategic procurement processes, making them more professional; bundles purchase volumes in the consortium; and offers modular services, from individual services through to comprehensive end-to-end procurement solutions. This includes services in the sourcing areas of IT hardware and software, logistics, travel, workplace, facility management, marketing, insurance cover, professional services and real estate.
With its state-of-the-art P2P platform, which is used by the company to consolidate and manage its clients’ purchasing activities, Chain IQ offers a complete procurement outsourcing solution that is unique in the market. The company’s clear strengths also include its independence – it is owned by private investors – and its focus and specialization on professional strategic end-to-end purchasing.
The procurement services offered by Chain IQ accommodate the trend in the procurement sector for cost-optimized and professionalized purchasing in a consortium. The clients targeted by Chain IQ as consortium partners can expect to generate potential savings in the double- to three-digit million range. As such, the new offering has attracted considerable interest in the market, meaning Chain IQ has already been able to sign a number of letters of intent with interested clients. A number of other discussions with potential clients from various industries are already at advanced stages.
Claudio Cisullo, Chairman of the Board of Directors at Chain IQ: “With Chain IQ we have not just created a new company with an innovative offering, but we have created a new market. By completely outsourcing procurement, we are taking our clients to a new level of professionalism, efficiency gains and cost savings in purchasing, which allows them to focus on their core competencies. However, as an entrepreneur, I am particularly proud of the fact that we maintain staff, and their expertise, in Switzerland, the UK, the US and Singapore, and lead them into a new future.”