Drinks company Diageo has signed two major outsourcing contracts to provide continued support for its IT infrastructure and develop a SAP-based supply chain system.
It has extended its commitment to existing supplier CSC, by signing a new IT outsourcing contract for five additional years of support for its IT infrastructure, worth an estimated value of $28 million (17.1 million).
Under the terms of the new agreement, CSC will continue to provide Diageo's locations in the UK and Ireland with applications support services across a portfolio of critical business applications and tools.
In addition it has signed the outsourcer up to design, develop and implement a new worldwide supply chain management solution based on SAP software to improve visibility of Diageo's product stocks worldwide, which include brands such as Johnnie Walker, Guinness and Smirnoff.
The SAP system will also enable the drinks company to improve its supply to demand ratio and help reduce costs throughout the supply chain process. This is part of a second deal, which is worth approximately $7 million (4.3 million) over the next four and a half years.
Donald Dempsey, Diageo global services director was keen to stress the strategic importance of the deals, as Diageo brands are sold in approximately 180 countries around the world, making the optimisation of its supply chain key.
"The continual relationship with CSC demonstrates the contribution they make in supporting Diageo's information systems strategy," he stated. "Their knowledge of our business processes makes them a valued partner in delivering our agenda."
Nick Wilson, president of CSC's operations in the UK, Nordics, Middle East and Africa added that the renewed commitment through this major, new global IT investment program was testament to the significant business benefits Diageo has received from its outsourcing work.
CSC first began supporting Diageo in 1995.
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