Korea Exchange Bank, a foreign exchange bank, has signed a five-year strategic procurement outsourcing agreement with IBM. Under the terms of agreement, IBM will provide KEB a full range of enterprise strategic sourcing and procurement services, allowing the bank to focus on its core competency and competitiveness in the banking industry while achieving cost savings and improving industry compliance and internal control.
IBM has said that it will run KEB’s overall sourcing and procurement operations end-to-end, covering areas of information technology, marketing, services, facilities and supplies. As part of the project, IBM will establish and support the bank’s purchasing strategies, improve the purchasing process and systems, as well as manage strategic sourcing processes and relationship with suppliers. Additionally, IBM will also make purchasing decisions and settle payments.
The implementation of the procurement outsourcing project supports KEB’s Zero Waste Project, which is an employee-engaged management campaign aimed to optimize the cost structure and improve management efficiency. In addition to optimize the bank’s operational efficiency, KEB also wanted to yield cost savings through centralized and streamlined purchasing process conducted by IBM.
