Computer Sciences Corporation (NYSE:CSC) is giving companies the opportunity to reduce costs and enhance customer service through a new business model which incorporates advanced supply chain management.
In a new book entitled Business Process Management Applied Creating the Value Managed Enterprise, distributed by J Ross Publishing and written by CSC supply chain experts Chuck Poirier and Ian Walker, readers are shown how a traditional, functionally organised company can evolve, through collaboration with customers and suppliers, into an adept performer within a complex supply network.
The book outlines:
How process improvements can add value for any firm of any size in any business and shows the way to track the savings made to the profit and loss statement
How process thinking has developed to enable joined up companies to measure the value they are achieving together
How to evaluate a companys supply chain maturity where a company is today and how ready it is to take the next steps
Poirier and Walker make the case that a new business model is evolving, grounded in the principles of advanced supply chain management, augmented with lean techniques, quality assurance, and selective outsourcing. The result is a move towards optimising the end-to-end processes in a business network, reducing costs and inventories while enhancing customer service.
The book also demonstrates how taking advantage of the improvements, combined with customer intelligence and the sensible application of customer relationship management, results in increased revenues. They present a compelling formula for improving the bottom line through cost reduction and the top line through new sales.
Leading global brands such as Colgate-Palmolive, Dell, Procter & Gamble, SYSCO, Toyota, Hoffman-LaRoche, Nike and Wal-Mart have all used elements of this contemporary business model to realize benefits in the following areas:
Forecasting improvements of 10 to 50 %
Inventory cost reductions of 20 to 50 %
Warehousing cost reductions of 5 to 25 %
Transportation cost reductions of 5 to 15 %
Customer service improvements of 5 to 20 %
Revenue enhancement of 2 to 10%.
General, sales and administrative cost improvements of 3 to 5%
Other organizations which have already applied the strategies and which are case studied in the book include some of CSCs own clients Clarks, Zeneca, Airbus, BAE Systems, Thales, RACAL and Strachen & Henshaw.
Ian Walker, Associate Director in CSCs consulting practice, said: Documented evidence from a significant number of supply chain efforts across many industries has revealed that three to eight points of new profit can be added to a firms earnings before taxes.
Business Process Management Applied Creating the Value Managed Enterprise shows readers how to learn from the experiences of others and unlock those potential points of profit within their own business.
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