Coty Inc, a leading worldwide beauty company, announced that it has signed a 5-year contract with IBM for procurement services across 14 countries in North America and Europe.
This partnership is expected to deliver significant cost savings to Coty throughout the life of the contract by leveraging IBM's global economies of scale and optimizing Coty procurement processes.
This initiative is key to Coty's strategy of harmonizing its business processes globally and building on its “Spiral of Success” efficiency program, which aims to realize significant cost savings while optimizing business processes.
In recent years, Coty has rapidly developed its core businesses through organic growth and acquisitions. The cost savings from the procurement project are expected to further accelerate Coty's growth by freeing up capital to invest in existing brands and other acquisitions.
IBM will procure goods and services for Coty in areas such as business services, travel, facilities management, technology and telecommunications, marketing and logistics.
Core to the project is the implementation of IBM's complete Procure-To-Pay procurement solution, which will be integrated into Coty's systems. IBM's solution will enable web-based requisitioning, automated ordering, timely monitoring of order status and efficient supplier payment.
“This agreement with IBM will help enable Coty to transform its business and provide synergies across itsbrands while improving profitability,” says Bernd Beetz, Coty Inc. CEO. “We look forward to working with IBM, which has demonstrated a proven ability to deliver comprehensive procurement services that will benefit the Coty organization.”