Olam International has recently inked a deal with SAP for a long-term relationship that will see the global agriculture business company improve its operations as it pursues expansion.
Olam International specialises in supply chain management of agricultural products and food ingredients across 65 countries worldwide.
Under the deal, which is expected to be completed by 2016, SAP will implement an enterprise-wide UDD (Unlimited During Deployment) licence agreement allowing Olam to deploy a wide range of SAP products and an unlimited number of user licences across the organisation.
SAP's rollout is part of Olam's IT strategy which was developed in 2010 to support Olam's expansion. Olam said it has already implemented SAP in Australia, Vietnam, and India, while implementations are ongoing in the US, Argentina, Indonesia, Nigeria, Cote d'Ivoire, Ghana and Gabon.
SAP's solutions and services have been identified as the best in the market that can support Olam's IT system that integrates the company's diverse global operations, which include upstream farming and plantations, core supply chain operations, midstream processing and downstream distribution. SAP said it can also benefit from Olam's experience given Olam's unique business models and processes.
"SAP is fully aligned to our strategic goals and is a critical enabler for us to succeed as a major diversified business at the forefront of the global agri-complex," said Ashok Hegde, managing director & global head, Risk Management & Information Systems, Olam. "It supports our pursuit for systems excellence in both our existing and acquired businesses, and in traditional as well as new value chain segments. This long-term partnership provides an essential platform from which we expect to drive operational excellence and growth," added Hegde.
SAP said that with the solutions and services it is implementing for Olam, the agri-business company can analyse its operational data in real time.
"In this regard, SAP helps Olam gain valuable insights for strategic decision-making as they operate in new value chains and maximise their efficiencies," said Colin Sampson, chief financial officer, SAP Asia Pacific Japan."
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