IBM and Coty sign five-year procurement deal

5 December 2005
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05 December 2005

Global beauty and fragrance firm Coty has outsourced its procurement function to IBM in a five-year contract.

Under the deal, IBM will provide purchasing expertise for the company, which has a portfolio of brands including Calvin Klein, Rimmel and Adidas, across North America and Europe.

The move is part of Coty's "Spiral of success" efficiency programme. It hopes IBM's knowledge, together with the economies of scale it can achieve, will deliver significant savings and free up capital it can reinvest into existing brands and acquisitions. The company has not yet revealed the size of the expected savings.

The deal means IBM will procure goods and services for Coty in areas of business services, travel, facilities management, technology and telecommunications, marketing and logistics.

IBM's procure-to-pay tool will also be integrated into Coty's existing systems. This enables staff to use the web for requisitions and allows users to monitor the status of orders and pay suppliers.

The project will apply in the UK, France, Germany, Netherlands, Austria, Belgium, Italy, Spain, Ireland, Portugal, Switzerland, Monaco, the US and Canada in the next 15 months.


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