In advance of the IBM Smarter Commerce Global Summit in Nashville next week (see my last post for some background), IBM announced a major three-year agreement today with L’Oréal USA for expert procurement services using an advanced cloud analytics solution that will transform how L’Oréal USA buys from its network of North American suppliers.
With this agreement, L’Oréal USA will partner with IBM to undertake a complete transformation of the buying, compliance and management of its vendor and supply process, ultimately leading to lower costs and increased supplier value.
The company will tap a powerful portfolio of IBM procurement services, consulting and analytical expertise including a new analytics tool developed by IBM Research, as well as IBM SmartCloud commerce solutions. Together, these will help the marketing and procurement team at L’Oreal gain immediate and broad access to global data to make faster and more insightful decisions, while ensuring purchasing compliance.
The new services will enable the company to bring beauty products to consumers more quickly and efficiently.
L’Oréal USA, headquartered in New York, is a wholly-owned subsidiary of L’Oréal SA, the world’s leading beauty company. Over the years, L’Oréal USA has rapidly grown through both acquisitions, and its existing brands.
With the new market advancement, the company’s ecosystem of suppliers and vendors has grown exponentially. In order to continue to realize more savings from procurement, L’Oréal USA needed its procurement workforce compliant with its spending processes to attain the best buying advantage.
A Beautiful Combination Of Services, Research, and Cloud Analytics
IBM’s work with L’Oréal USA represents a unique combination of IBM research, services and software. L’Oréal is the first client to purchase IBM global procurement business process and technology services that include a new compliance analytics tool from IBM Research, integrated with strong spending analytics capabilities from the IBM SmartCloud procurement management software.
The IBM procurement management solution will provide spend analytics and program governance in support of all procurement sourcing activities. The IBM Research tool is designed to detect unusual buying problem areas across millions of buying transactions and optimize compliance by evaluating the impact of possible corrective actions to improve spend compliance.
This tool will be integrated with IBM software for Smarter Commerce spend analytics, that together forecast data on buyers’ compliance with procurement processes and ultimately help drive increased savings.
Background: IBM Cloud Computing
IBM has helped thousands of clients adopt cloud models and manages millions of cloud based transactions every day. IBM assists clients in areas as diverse as banking, communications, healthcare and government to build their own clouds or securely tap into IBM cloud-based business and infrastructure services.
IBM is unique in bringing together key cloud technologies, deep process knowledge, a broad portfolio of cloud solutions, and a network of global delivery centers. You can learn more about IBM’s cloud computing capabilities here.
As regards the IBM Smarter Commerce Global Summit in Nashville, you can begin monitoring the hashtags #smartercommerce and #IBMSmrtCommerce to keep pace with the market conversation leading up to, during, and after next week’s event.