Cadburyis to slash its \u00a370 million annual costs of technology services, and improve processes, as it seeks to strengthen its position against a hostile takeover bid from Kraft.\nThe move is part of a raft of procurement and operational moves aimed at fending off Kraft\u2019s approach.\nCadbury today urged shareholders to reject the takeover bid, accusing Kraft of trying to buy the company \u201con the cheap\u201d. There was no benefit to the proposed takeover, even in operational terms, it insisted.\nCadbury is examining procurement costs as a key area for strengthening its business position. It identified IT support as a major target for change alongside spending on packaging and food ingredients.\nAt present, Cadbury buys technology support locally, but it wants to move away from this model and make more use of its global scale. A new procurement manager, appointed in July, will coordinate the changes.\nAndrew Bonfield, chief financial officer, today told investors that up to two-thirds of the company\u2019s spending, including IT, \u201cdoes not deliver the full benefits of effective procurement\u201d.\nThe company is targeting a 16 to 18 per cent overall operating margin by the end of 2013, and over five per cent annual revenue growth, aided by swift improvements to its buying habits. \u201cBy aggressively managing our activities, we believe procurement can deliver over half of our total savings within cost of goods sold,\u201d Bonfield said.\nThe confectionery giant is attempting to build a \u201cworld class\u201d global procurement operation, which will \u201cconsolidate our scale and deliver quick wins\u201d, he said.\nCadbury said it had completed extensive work to improve its supply chain and other key operations. It is aiming to be \u201cmore commercially aggressive in the way we work and make decisions\u201d.\nChanges to its supply chain and manufacturing, as well as to the company\u2019s overall structure, had made it \u201ca strategically advantaged, financially strong business\u201d, chief executive Todd Stitzer said.\nThe company is also working to improve the technology it uses, saying that, in addition to strengthening its brands, this would provide a \u201cgood foundation\u201d for revenue growth. Technology centres of excellence would help its speed and efficiency in product innovation, as well as time to market, it said. It is also targeting \u201cfaster, streamlined\u201d decision making.\nProcesses are also under the microscope. So far, process improvement efforts have normally taken place at a local level, such as at individual manufacturing plants, the company said. Now it is now targeting \u201ccontinuous improvement\u201d across the group.\nIn 2005, Cadbury began rolling out SAP enterprise resource planning software as part of a \u00a3500 million efficiency bid. But implementation problems held up the rollout, causing an excess of stock and costing the company dearly.\nAs Cadbury attempts to keep rival Kraft at bay, it is reported to be in discussions with Hershey, which it sees as a better match. Both Hershey and Kraft are also major users of SAP.