Drinks giant Diageo has signed two contracts with CSC, including a deal to design and roll out a SAP-based worldwide supply chain management system.

The four and a half year agreement has an estimated value of $7m (£4.31m). The supply chain system is intended to enhance visibility of Diageo's product stocks worldwide, help lower costs and improve the supply-demand ratio.

Diageo, whose brands include Johnnie Walker, Guinness and Smirnoff, has also extended its existing IT outsourcing contract with CSC for an additional five years. The extension has an estimated value of $28m (£17.24m).

Under the new agreement, CSC will provide Diageo's locations in the UK and Ireland with applications support services across a portfolio of critical business applications and tools.

"The continual relationship with CSC demonstrates the contribution they make in supporting Diageo's information systems strategy," said Donald Dempsey, global services director at Diageo. "Their knowledge of our business processes makes them a valued partner in delivering our agenda."

Diageo first outsourced to CSC in 1995.