Retailer Boots renegotiates IT outsourcing contract with IBM

High street chemist Boots plans to renegotiate its contract with IT outsourcing partner IBM after completing technology renewal projects ahead of schedule.

The retailer has been working with the IT supplier over the past few years to upgrade in-store tills, introduce Chip-and-PIN payment systems and install financial, human resources and merchandising applications from software firm SAP.

The chemist has also introduced radio frequency technology at 125 of its busiest stores, so that staff can better monitor stock levels on shelves and in the stock room.

But after completing the bulk of the work ahead of schedule Boots now plans to restructure its contract with IBM.

'We are now at a point where we need a contract to reflect the steady state of work, which will focus more on maintenance of systems,' said a spokesman for Boots.

The decision follows a similar announcement made by the chemist last year where it decided to restructure a contract with IT partner Xansa.

Boots has also announced plans to overhaul its supply chain by building a £70m warehouse in Nottingham, which will rely on technology to automate many of the processes.

'Our proposed supply chain investment is based on proven technology delivering greater productivity and lower operating costs,' said Richard Baker, chief executive of Boots.

'This will allow us to compete even more effectively while delivering a better service to our stores,' he said.

What do you think? Email us at: mailto:feedback@computing.co.uk