By Lori Steele
This week, C-suite attendees representing all aspects of technology-fueled commerce will be convening at the IBM Smarter Commerce Global Summit in Nashville. Among the participants will be L’Oréal USA, with whom IBM is working on a three-year project for procurement services supported by an advanced cloud analytics solution to help transform the way L’Oréal USA buys from its large network of North American suppliers.
Over the years, L’Oréal USA has rapidly grown through both acquisitions and organically through 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.
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 new smarter commerce solutions will enable L’Oréal USA to bring beauty products to consumers more quickly and efficiently.
The payoff to sourcing critical business processes like procurement is innovation. According to the new IBM Center for Applied Insights study, “Why partnering strategies matter,” which involves more than 1,300 business and IT sourcing decision makers worldwide, organizations like L’Oréal USA that source broadly to drive innovation, are outperforming on a host of financial measures, including revenue (2x) and gross profit (5x) growth.
In other words, the formula for success is based on metrics that are tied to business outcomes, transformational scope and integrated governance.