ECCO and IBM Announce $12M, 5-Year Services Agreement

ECCO Sko A/S, the global shoemaker, and IBM (NYSE: IBM) today announced a 5-year services agreement for IBM to support the company's existing SAP R/3 environment and the implementation of a new ERP business solution with several new modules that will enable the company to continue its aggressive growth and global expansion strategy. The contract has the potential value of more than $12M.

As a leading brand manufacturer, ECCO has tanneries, shoe factories, selling companies and more than 500 own or franchise shops in 60 countries. The shoemaker has decided to implement a more flexible and modern version of SAP with several new modules including customer relationship management, supply chain management and supplier relationship management. IBM Global Business Services consultants will implement and manage the new modules, while also supporting ECCO's current SAP installation.

"As one of relatively few brand owners, ECCO insists on owning the entire value chain from product design and development to tanneries, factories and wholesaling. Moreover, we own about 100 shops and are closely integrated with the hundreds of outlets that are operated by partners all over the world," says Mikael Thinghuus, COO at ECCO. "IBM's expertise combined with SAP's integrated solution design will increase our flexibility and enable us to handle the continuous adjustments that are necessary in the supply chain. Also, it's our aim to increase the visibility of the supply chain metrics and performance."

"Having a better and more integrated view of the entire business allows ECCO to better predict product demand, understand the financial implications, and respond quickly to meet it," said Jens Hassel, vice president, IBM. "Working with IBM and SAP to quickly implement this solution, ECCO will now be positioned to be even more responsive to its customers needs while still meeting its growth objectives."

The contract was signed December 22, 2006.