Coca-Cola Amatil signs SAP cloud deal with IBM

Coco-Cola Amatil (CCA) has signed a "multimillion dollar" agreement with IBM to move its SAP infrastructure for its South Pacific operation into the cloud.

Coca-Cola Amatil (CCA) has signed a five-year cloud deal with IBM, which will see the tech giant manage the company's SAP infrastructure that services its South Pacific operation.

While no specific value of the contract has been disclosed, the "multimillion dollar" agreement will streamline CCA's operations and processes across six countries, including Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa. It is projected to "drive significant operational costs out of the business".

CCA CIO Barry Simpson said using a common cloud platform across its business will standardise, automate and create a consistent level of efficiency across its operations.

Australia and Indonesia will be the first countries to adopt the IBM cloud platform to optimise and streamline CCA's order management and distribution processes.

Simpson said the decision to push Indonesia as one of the initial countries onto the cloud platform is part of the company's overall strategy to grow its market share in the country during 2014.

Under the agreement, IBM will also manage CCA's SAP infrastructure in a cloud environment hosted in IBM’s data centre in Sydney, which will eventually act as a cloud hub for the rest of CCA's South Pacific operations.

"CCA's plans to have Sydney serve as a cloud hub for its entire South Pacific footprint via IBM's cloud platform will bring enhanced operational efficiency to its entire organisation," said Grant Thomson, IBM cloud business leader.

"CCA will be able to leverage best-practice processes from its Australian operation and apply them to the rest of the South Pacific region."

Grant also said CCA plans to keep all of its IT operations in Australia to service its South Pacific operations and hopes to save "significant revenue".

CCA completed the move of 120 legacy systems in Australia and New Zealand onto a single SAP platform during the first half of 2012. The AU$65 million OAisys (One Amatil information system) project involved upgrading finance and human resources back-office systems, CCA's call centre, equipment service, warehousing, payroll, supply chain management, and demand planning systems.