No surprise that the announcement should involve Australia’s largest company (and a nine-figure number).
IBM said it has expanded its existing seven-year supply chain deal with Telstra, an extension that would deliver $200 million in additional cost reduction benefits to the telecom giant.
Telstra procurement executive director Ian Wheatley said Phase One of the company’s supply chain project with IBM had been a success and the company was on target to save $500 million over seven years.
The next phase of the supply chain transformation program would focus on improving Telstra’s efficiency in ordering, managing and delivering telecommunication parts needed by technicians and engineers to perform network maintenance, fault repairs and activation of customer services.
“In the first phase of our supply chain transformation, we replaced four payment and ordering systems with IBM's out-of-the-box software,” Mr Wheatly said.
“In phase two of the program, IBM will provide a single end-to-end view of our inventory supply chain and enable us to deliver the right part, at the right place, at the right time – improving customer service and reducing costs. This is great news for our customers and shareholders,” he said.
Telstra says it has reduced its procurement costs by $159 million since September last year.
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