The Korea Exchange Bank (KEB), the country's largest foreign exchange bank, has awarded IBM a five year strategic procurement outsourcing agreement.

Under the agreement signed in August 2009, IBM will provide to 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 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, the company 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. 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 optimise the cost structure and enhance management efficiency. In addition to optimise the bank's operational efficiency, KEB also wanted to yield cost savings through an advanced, centralised and streamlined purchasing process conducted by IBM.