Solectron Signs Multi-Year Contract With IBM for Procurement Business Transformation Services

Solectron Signs Multi-Year Contract With IBM for Procurement Business Transformation Services

IBM today announced that it has signed a long-term contract with Solectron Corporation (NYSE: SLR), a leading provider of electronics manufacturing and integrated supply chain services, for indirect procurement services across 17 countries. Solectron is expected to realize significant savings throughout the life of the contract by leveraging IBM’s global economies of scale and by optimizing core procurement processes. The value of the contract is not being disclosed.

IBM will manage more than $1.2 billion per year of indirect spend in areas such as temporary contract services, office equipment, utilities, and telecommunications. Core to the project is the implementation of IBM’s complete Procure-To-Pay procurement solution that will be integrated with Solectron’s 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, Solectron. “IBM’s world-class expertise and experience in sourcing and procurement as well as its ability to serve us globally were keys in the development of our indirect procurement strategy.”

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