The professional services company will also enable Volvo Cars to implement intelligent process automation for bringing in efficiency and support its ongoing digital transformation journey
A delivery centre of Cognizant in Chennai, India. (Credit: Cognizant/Wikimedia Commons)
Cognizant has renewed its contract with Volvo Cars to provide finance and accounting (F&A) and procurement services for the Swedish automobile manufacturer.
The contract has been renewed for three years and its value has not been disclosed by the parties.
It will cover Volvo Cars’ global accounts payable and accounts receivable, logistics services, and direct and indirect procurement.
Under the new agreement, Cognizant will help the Swedish carmaker to harmonise its finance and accounting and procurement processes. The US-based professional services company will also enable the latter to implement intelligent process automation (IPA) for bringing in efficiency and supporting its current digital transformation journey.
Cognizant said that Volvo Cars will be using best in class payment on time (POT), highly automated, contactless processing of invoices. Through ticketing tools provided by the US firm, the carmaker is expected to enable a quicker resolution to supplier and customer queries.
As a result, Volvo Cars will be able to decrease the cost of delivery of business process services and enhance overall business outcomes, said Cognizant.
Cognizant Nordics head Anne-Sofie Risåsen said: “The automotive industry has been undergoing continuous evolution as business models change and the shift to electric cars has become key to car makers’ goals of climate neutrality. We are proud to support Volvo Cars in its rapid growth across numerous markets.
“We now look forward to strengthening the already established global standard F&A and procurement processes as we increase our footholds in direct and indirect procurement.”
In 2011, Volvo Cars had selected Cognizant to provide it with a range of finance and accounting services. As part of that, the latter has been handling the entire value chain of Volvo Cars’ F&A, which includes accounts payables, receivables, accounting, fixed assets, periodic end closing, general ledger, and procurement services for production and non-production materials.