AKRON (March 29, 2004) — Goodyear Dunlop Tires Europe has signed a 10-year business transformation outsourcing agreement that is expected to save 50 million euros ($60.8 million) in the first two years, the company said.
The agreement partners Goodyear's European affiliate company with IBM on a procurement-to-payment program for indirect supplies. Goodyear said the deal represents another step in the company's cost-cutting efforts as part of its turnaround plan.
Goodyear Dunlop will retain its core purchasing competencies, but 50 to 80 Goodyear Dunlop employees will be transferred to IBM on a phased basis. The main savings will be achieved by leveraging IBM's procurement organization, which will negotiate on behalf of Goodyear Dunlop, the tire maker said.
In Western Europe the company's 2002 annual sales revenue was more than $3.3 billion, the company said.