On July 2006 Fazer Group signed a five-year agreement with IBX, Europe’s leading provider of services and solutions for efficient purchasing and started the implementation process during August 2006. Through the co-operation, Fazer is looking to increase the efficiency of its strategic sourcing process and achieve benefits in the form of lower purchase prices.

The new electronic sourcing process includes different areas of strategic purchasing; tendering, auctioning and category and supplier data management. The agreement also covers the implementation project of the new process and solution, technical support and consultancy throughout different project phases.

In addition to increased price-competitiveness, the solution will also help to enhance data management. All the information regarding sourcing projects is now stored in one place. This enables more efficient forms of data using. Furthermore, the new system improves the transparency throughout the company.

- In order to get eSourcing system to run efficiently, well functioning sourcing process must be in place. We have developed and implemented category management process as a strategic sourcing model throughout the whole Fazer Group, which is a good basis for electronic systems. We chose IBX’s solution after testing various different suppliers’ systems. The user-friendliness and versatility of the IBX system and access to local, Scandinavian support were critical as decisive factors, says Fazer’s Vice President, Sourcing, Anne Mykkänen.

- I firmly believe that the partnership between IBX and Fazer will generate cost savings and efficiency in the sourcing process. In previous projects with similar qualities, IBX has managed to generate savings of 5-30 percent lower purchase prices and 30-50 percent reduced in terms of the administrative time required for sourcing, comments IBX’s Country Manager Ari-Matti Purhonen.

Fazer’s associated company Cloetta Fazer has also developed their strategic planning and implementation of sourcing functions by adopting IBX’s e-sourcing solutions. Cloetta Fazer aims to increase the volume and efficiency of sourcing. In strategic sourcing the key issues are need assessment, market- and supplier analysis, category planning and goal definition

For more information, please contact:
Ari-Matti Purhonen, Country Manager, IBX Finland, tel. +358 (0)50 995 5995,
e-mail: ari-matti.purhonen@ibx.fi
Anne Mykkänen, VP, Sourcing, Fazer Group, tel. +358 (0)40 568 6939,
e-mail: anne.mykkanen@fazer.fi

About Fazer Group
Fazer Group originates from a family business founded in 1891. Today the Group offers meals, bakery products and confectionery and operates in a total of nine countries. Its operations are based on passion for customer, quality excellence and team spirit. The Group operates in three divisions, which are all committed to offering taste sensations: Fazer Amica, Fazer Bakeries and Candyking. Fazer Amica is a leading contract catering company in the Nordic and the Baltic countries, offering customers delicious food and tailor-made service solutions. The company operates in the Nordic countries, Estonia, Latvia and Russia. Fazer Bakeries offers fresh and tasty bakery products and operates in Finland, Sweden, Russia, Estonia, Latvia and Lithuania. Candyking is a pioneer and a market leader in the pick & mix confectionery business in the Nordic countries, the United Kingdom and the Baltic states. Fazer’s most important associated compan.y is Cloetta Fazer AB, which is the leading confectionery company in the Nordic countries. Fazer Group‘s turnover for 2006 was around one milliard euros. The Group employs ca. 15 000 people.