Unilever outsources European procurement processes

Unilever has signed a deal for IBM to manage a key part of its European procurement.

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Unilever has signed a deal for IBM to manage a key part of its European procurement.

The two year agreement covers the purchase of goods and services not for sale, including office equipment and staff travel. It will address processes from making orders through to payment. The companies declined to disclose the value of the deal.

Unilever, which makes consumer goods including Marmite, Dove soap and Domestos bleach, said the deal would help it reduce costs, while improving governance and compliance.

The procurement processes will be managed from an IBM centre in Budapest, with software hosted in Bangalore. Unilever already uses the IBM procurement services and software outside Europe.

Meanwhile, Unilever is undergoing a major IT standardisation project around SAP. Earlier this month, the company revealed it had saved €1.1 billion (£960 million) in the last year through organisational efficiencies and improvements to its supply chain.

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