IBM has entered into a long-term contract with Solectron Corp. of Milpitas, Calif., for indirect procurement services in 17 countries. Solectron is a worldwide provider of electronics manufacturing and integrated supply chain services. IBM will manage more than $1.2bn a year of indirect spend in such areas as temporary contract services, office equipment, utilities and telecommunications. Solectron will integrate IBM's complete Procure-To-Pay procurement solution with its internal systems and controls. IBM's solution will enable web-based requisitioning as well as efficient procurement and supplier payment.
"The savings we expect from this contract with IBM will contribute to both operational and process innovation and simplification, which improves services to our customers and suppliers," says Perry Mulligan, chief procurement officer at Solectron.
The hosted Procure-To-Pay environment and business operation is scheduled to go live in the autumn in North America and then be fully deployed globally by early spring 2007.
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