The International Business Machines (NYSE: IBM), has as of today, 6th October 2021, announced a five-year contractual agreement with Honda Motor Europe Ltd., to integrate and manage Honda’s finances and procurement operations across Europe.
The agreement is designed to deliver an integrated end-to-end service which can help Honda improve efficiency, reduce costs, standardise processes across its European operations.
As part of the contract, IBM is expected to ultimately lay a state-of-the-art foundation for Honda’s ‘Zero Touch’ vision.
Mr. Joe Crump, the General Manager, Business Administration, Honda Motor Europe stated that, the move to partner with IBM has become relevant due to Honda’s desire to attract more businesses.
“We [Honda] have a strategic need to transform our finance and procurement operations into the very best in the world and in so doing make Honda’s European operations a business that every dealer and supplier want to work with.”Mr. Joe Crump
According to Crump, “we [Honda] have a proven excellent working relationship with IBM, which has become a trusted partner”.
“I am confident that IBM will bring enormous expertise to help Honda make the changes needed to respond to the industry’s challenges and emerging opportunities.”Mr. Joe Crump
Considerations under the contract
On his part, Mr. Dave Miller, IBM Managing Director for the Honda Global Account, revealed that, IBM will come on board with its expertise to help Honda Motor Europe Ltd, achieve its goals.
“We [IBM] look forward to bringing our business process experience, technology and transformation methodologies to help Honda Motor Europe bring its ‘Zero Touch’ ambitions one step closer.”Mr. Dave Miller
Also, Dave stated that “we [IBM] plan to bring together people, processes and solutions into intelligent workflows through an optimised managed services approach”.
This, Mr. Miller disclosed, can enable Honda Motor Europe Ltd. to enhance its finance and purchasing operations and become the partner of choice to its network of dealers and suppliers.
Meanwhile, IBM, under the agreement, “plans to manage the Source-to-Pay, Record-to-Report and Order-to-Cash processes”.
Also, “the standardisation and simplification of the processes is designed to enable the application of the latest advances in automation, which can provide further cost and quality benefits”.
IBM disclosed that, it intends to establish an effective new single helpdesk with an integrated view of the entire finance and procurement functions, which can help to improve customer service.
IBM spin-off deal
Reports have it that, IBM is closing in on the completion of the US$19 billion spin-off deal of its Managed Infrastructure Services business.
IBM shareholders, reports disclose, will receive shares of the new company, Kyndryl, once the transaction is complete.
Earlier this year, IBM announced that ‘Kyndryl’ will be the name of the new independent company that will be created following the separation of its Managed Infrastructure Services business which is expected to be completed by the end of 2021.
Martin Schroeter, the Chief Executive Officer (CEO) of Kyndryl stated that “Kyndryl evokes the spirit of true partnership and growth”.
“Customers around the world will come to know Kyndryl as a brand that runs the vital systems at the heart of progress, and an independent company with the best global talent in the industry.”Martin Schroeter