IFS and Centric join forces to launch IFS Retail
IFS, the global enterprise applications company, and Centric, the Dutch IT services provider, have today announced a joint venture which is intended to create the industry’s most complete, integrated and cost-effective retail IT offering on the market.
IFS Retail will adopt the model of previous successful joint ventures, IFS Defence in the UK and IFS-UFIDA in PR China, with Centric taking a 50.1 per cent interest in the joint venture company. IFS Retail will be headquartered in Linköping, Sweden, and will use all existing IFS and Centric operations internationally.
Born from the existing partnership between IFS and Centric, IFS Retail will package Centric’s renowned point-of-sale, warehousing and logistics systems with IFS’ extended supply chain and business applications to provide retailers with a powerful, pre-integrated and fully flexible extended ERP solution. Customers will also be offered a common support and implementation strategy.
Incorporating IFS Applications with best-of-breed retail specific solutions from Centric into a single package will allow retailers to minimize the integration risks, high costs and lengthy implementation times typically associated with end-to-end retail projects.
IFS offers industry-specific solutions for retailers throughout their whole value chain; from planning, procurement, and distribution, through to store operations. IFS Applications provides support for all critical business processes in the industry, including master data management, automatic replenishment, bonuses and discounts, strategic HR and forecasting.
Capitalizing on Centric’s strength and presence across the central European market and IFS’ global geographical reach, the joint venture will open up additional opportunities to win market share, particularly within Scandinavia. IFS Retail will also benefit from operational efficiencies gained from complementary capabilities and expertise.
IFS Retail will build on previous joint customer successes, including Intertoys, Marskramer and Tuincentrum Overvecht. Existing IFS customers in the retail area are Stadium, Systembolaget, Reporter and Byggmax. Centric customers include Kingfisher, Hema, A.S. Watson, Hoogvliet, McGregor and Spar. As part of their existing relationship, IFS and Centric established a Centre of Excellence—in collaboration with customers of both companies—which focused solely on the success of the partnership. The joint venture will allow additional investment in strengthening and developing their joint solutions and will allow the company to take advantage of opportunities for organic growth.
“IFS and Centric have partnered together in the retail market for the past two years, with proven customer success and great cultural fit. The creation of IFS Retail cements this powerful partnership further, enabling both companies to work closer to provide retailers across the globe with solutions that combine best practice, over 30 years of domain expertise, market-leading applications and secure integration and implementation services,” said Alastair Sorbie, CEO of IFS.
“In today’s challenging economic climate, it is vital for retailers to enhance productivity while reducing costs,” added Karim Henkens, Managing Director Centric IT Solutions. “Following the creation of IFS Retail, the industry will experience complete and best-of-breed retail and business functionality, consultancy and service, without the hindrance of a risky and long integration process. We will continue to develop compelling solutions that will give our customers the flexibility to react quickly and cost-effectively to the challenging demands of the market.”
IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a fully-integrated, component-based extended ERP suite built on SOA technology. The company has more than 2,000 customers in 54 countries and focuses on seven main industries: aerospace & defense, utilities & telecom, manufacturing, process industries, automotive, retail & wholesale distribution, and construction contracting & service management. IFS has 2,600 employees and net revenue in 2007 was SKr 2.5 billion. IFS Applications is a trademark of Industrial and Financial Systems, IFS AB (publ). All other referenced company or product names are trademarks or registered trademarks of their respective owners.