Telstra and IBM supply chain agreement to deliver up to AU$200M in additional savings

December 6, 2007

1 Min Read

SYDNEY -- Telstra today announced an expansion of its seven-year supply chain agreement with IBM Australia (NYSE:IBM - News) that will deliver up to AU$200 million in additional cost reduction through further improvements in the company's supply chain management.

The next phase of Telstra's expanded supply chain transformation program will focus on improving Telstra's efficiency in ordering, managing and delivering telecommunication parts needed by its communications technicians and engineers to perform network maintenance, fault repairs and activation of customer services.

Telstra Procurement Executive Director Mr. Ian Wheatley said the phase one partnership with IBM has been a great success and is on track to deliver AU$500 million in reduced costs.

"We will now take what we've learned from phase one to drive further efficiencies in Telstra's logistics and inventory management and achieve a total supply chain cost reduction of AU$700 million over a seven-year period," he said.

Telstra Corp. Ltd. (ASX: TLS; NZK: TLS)

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