Procter & Gamble is moving up a gear in its SAP-based IT standardization program.

The household goods maker, which produces goods such as Gillette razors, Pampers nappies, Wella shampoo and Ariel washing powder, already uses SAP across its 80 countries of operation, but has signed a global enterprise agreement for an undisclosed amount to bring the two firms' collaboration closer.

Last week, P&G chief information officer Filippo Passerini told Computerworld UK that the company had dramatically improved its dialogue and long term business plans with IT suppliers, resulting in strong improvements in collaborative results.

The company has now said it will cut costs, drive growth in its business and innovate more as a result of the new agreement with SAP, which covers software, maintenance, software development and consulting.

It will also be able to more easily and quickly develop new SAP-based software and standardize it across the business, it said.

P&G uses SAP enterprise resource planning, supply chain and financial software. Other key applications include Oracle databases and customer relationship management software. It operates a European shared service center in Newcastle.

Passerini said the new agreement would "step-change innovation in business services and enhance the efficiency of our core business operations."