Royal FrieslandCampina Selects IBM to Manage Business Processes

New business process services agreement to increase company's competitiveness

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May 05, 2011, 09:00 ET

ARMONK, N.Y., May 5, 2011 /PRNewswire/ -- IBM (NYSE: IBM) and Royal FrieslandCampina, the fourth largest dairy company in the world, signed a five-year business process services agreement to enable the company to focus on its core competency and growth opportunity in the dairy industry.

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Following the merger at the end of 2008 of Friesland Foods and Campina, Royal FrieslandCampina is making its operations more efficient and transparent to achieve cost reduction and synergy and be able to gain market share in dairy-based beverages, infant & toddler nutrition, branded cheeses and functional dairy-based ingredients.

To achieve this, IBM Global Process Services (IBM GPS) and FrieslandCampina have worked together for the last six months on standardizing FrieslandCampina's worldwide business processes by implementing an SAP backbone, combined with an Internal Control Framework and Sales & Operations Planning that will provide the company with the information transparency needed to make rapid, fact-based decisions.

Under the new agreement, IBM will assist FrieslandCampina in further reducing cost by centralizing its global procurement process. IBM will run FrieslandCampina's overall Procurement operations end-to-end, including several sourcing activities for all non-product related procurement activities. This covers areas of information technology, marketing, services, facilities and supplies in Europe, North-America, Asia & Africa. As part of the project, IBM will improve and operate the purchasing process and introduce innovative procurement technology solutions from Ariba, a business partner of IBM's.

"After our merger in 2008, FrieslandCampina was seeking a business partner with global experience and a supplier network that could be leveraged to meet our purchasing requirements and synergy goals," said Kees Gielen, chief financial officer for Royal FrieslandCampina. "Working with IBM will help us to realize our global expansion plans, particularly in growth markets such as Asia and Africa."

"IBM's deep expertise in supply chain and procurement management as well as direct experience in managing more than US$50 billion of purchasing spend annually will help to give Royal FrieslandCampina a competitive edge going forward," said William van Rooij, consumer products leader for IBM Benelux.

Today's announcement with FrieslandCampina is another example of how IBM Global Services teams with its clients to solve business problems and help them capitalize on new opportunities. Clients today are looking to global process services providers like IBM for more than just cost cutting. Clients need help finding ways to better globalize their businesses and improve the efficiency and effectiveness of their processes to stimulate growth and prepare for the future. By tightly weaving together business insights from deep analytics, an industry-leading software portfolio, world-class technology research and operations expertise, IBM is redefining what it means to design, deploy and deliver process services on a global scale. As a result, IBM Global Services clients achieve faster return on investments while freeing up resources to focus on innovative projects.

About Royal FrieslandCampina

Headquartered in the Netherlands, Royal FrieslandCampina operates in 25 countries all over the globe. The products are sold in more than 100 countries. The dairy company employs 19,500 employees and has 14,800 member farmers in the Netherlands, Belgium and Germany. It produces dairy-based beverages, infant & toddler nutrition, cheese, butter, cream, desserts and functional dairy-based ingredients; all products that play an important role in people's nutrition and well-being. For more information about FrieslandCampina, please visit www.frieslandcampina.com

About IBM

For more information about IBM, please visit www.ibm.com/services

Media Contacts:

Jelmer Letterie
IBM Media Relations Netherlands
+31-(0)6-2043 3983
[email protected]

Bruce McConnel
IBM Media Relations
804-402-2229
[email protected]

SOURCE IBM