PT Unilever Indonesia Tbk. Signed ETS Agreement with Unilever Europe Business Centre B.V
PT Unilever Indonesia Tbk is building a Purpose-Led, Future-Fit business. It has been successful in establishing strong brands across several consumer products categories in Indonesia and this has been driven by continued strengthening of capabilities over the years. A key capability that needs to be built for the future and which will be essential to continued success relates to digital/information technology. The Company intends to digitize its operations end-to-end in the coming years, whether these relate to Front-end Sales or Information & Analytics to support business decisions dynamically or to enable more efficient and intelligent Supply Chain operations. The objective behind digitization is to boost growth, drive process excellence, reduce risks and improve cost efficiencies.
In order to enable this, the Company has entered into a comprehensive Enterprise Technology Solution Service Agreement (“ETS Agreement”) with Unilever Europe Business Centre B.V (UEBC), a Unilever Group entity which will centrally provide or procure the relevant services in order to maximise synergies and efficiencies. Services in the ETS Agreement include, among others business and finance services, information and analytics services, supply services and new programmes/innovations services. The services will be charged based on actual expenses incurred by UEBC in providing the services (actual ETS Costs) with an additional 5% mark-up (with the exception of the Bought-in Costs, which will be charged at cost) .
This service plays an important role for the digitization plan that the Company has. By digitizing its operations end-to-end the Company will be able to make more dynamic business decisions and operate more efficiently with better intelligence. It is clear that synergy in technology among members of the Unilever Group is needed, as it will be more difficult and less profitable for the Company if it uses similar services that are separate from those used by the group or obtain similar services from unaffiliated parties outside the Unilever Group. Through the implementation of the transaction, the Company will be able to deliver process excellence and efficiencies in accordance with the corporate governance standard of the Unilever Group. The Company believes that investing in ETS is a concrete step to generate more value for all the stakeholders.
This Public Disclosure has been made in Business Indonesia and Investor Daily newspaper and also our website on the 28th September 2019.