IBM inks five-year agreement with Honda Motor Europe to run its finance and procurement operations

IBM and Honda Motor Europe announced a five-year agreement under which IBM plans to manage and run Honda’s finance and procurement operations across Europe.

The contract is designed to deliver integrated end-to-end service which can help Honda improve efficiency, reduce costs, standardise processes across its European operations and ultimately set it on course to a “Zero Touch” vision, IBM said in its statement.

This agreement comes at a time when the automotive industry is embarking on a radical transformation to a connected, autonomous, shared, and electrified world. The transformation investments required put even greater demands on back-office functions to improve efficiencies and be flexible to support the changing business demands, the statement said.

“We 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,” said Joe Crump, General Manager, Business Administration, Honda Motor Europe. “We have a proven excellent working relationship with IBM, which has become a trusted partner and I’m confident will bring enormous expertise to help us make the changes needed to respond to the industry’s challenges and emerging opportunities.”

“We 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,” said Dave Miller, IBM Managing Director for Honda Global Account. “We plan to bring together people, processes and solutions into intelligent workflows through an optimised managed services approach that can enable Honda Motor Europe to enhance its finance and purchasing operations and become the partner of choice to its network of dealers and suppliers.”

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