Accenture has signed an information technology (IT) transformation deal with Hostess Brands to deploy a new operating model and business processes.
The IT deal helped Hostess Brands to re-launch Twinkies, an iconic product in America, in less than three months.
Accenture claims that within the first two weeks of reintroducing Twinkies to the shelf Hostess Brands had five times more Twinkies on the market than during the same period last year.
Accenture did not reveal financial terms of the IT.
As per the multi-year agreement, Accenture designed, built, and implemented a new operating model, including a new distribution system and IT systems, across all aspects of the Hostess Brands enterprise, including the sales and marketing, merchandising, manufacturing, finance and order management functions.
The speed of the implementation enabled Hostess Brands to get their products onto store shelves in time for the back-to-school shopping season, a crucial period for U.S. retailers and brands.
“The speed and precision of the delivery was crucial, so that our products were available for the back-to-school sales period,” said Dean Metropoulos, CEO of Hostess Brands.
The scope of the IT deal include design and implementation of end-to-end front- and back-office processes, including finance, procurement, sales, transportation management and distribution functions.
Accenture also assisted in developing a new distribution system, moving from a direct store delivery (DSD) model to warehouse delivery, helping to improve efficiency and speed to market.
Creation of a new data center, hosted on Accenture’s private cloud, to manage all business applications and support functions was also part of the IT contract.
“Accenture has helped Hostess Brands go from a standing start to producing and shipping 100 million snack cakes during the first two weeks of the relaunch,” said Harin Shetty, a managing director in Accenture’s Consumer Goods & Services practice.