Global Logistics and Supply Chain Strategies - October 2008 - (Page 26)

ucts very quickly at our manufacturing operations in Asia and Central America. Jerry Leigh needed a solution to help us streamline production and improve communications with customers and trading partners around the world. e-SPS was the right answer for us.” Visit www.ngcsoftware.com. process orders and raise invoices efficiently.” Visit www.gxs.com. Hackett Study Offshoring Study Compares Captives and Business Process Outsourcing Globalization of key business processes in finance and other back office areas is expected to continue to see strong growth over the next three years, with companies increasing their use of offshore resources by more than 50 percent, according to results of a study by The Hackett Group, an advisory firm. Hackett’s 2008 Globalization Performance Study is one of the first to capture the same information from companies using leading business process outsourcers (BPOs) and those operating their own captive shared service centers in India and other low-cost labor markets. The study confirms that companies can generate fairly comparable cost savings with either globalization approach, with most companies driving cost reductions of 25 percent to 50 percent. But Hackett’s research also spotlights some stark differences between BPOs and captives. BPOs are able to ramp up twice as quickly as captives, and are twice as likely to exceed expectations for on-time service delivery levels. As a result of the faster ramp-up, BPOs also see much faster benefits realization, showing a five-year net present value that is more than 50 percent higher. BPOs fall far short in driving innovation, the study found. And while captives are significantly more successful, they still need improvement. According to Hackett, companies need to change the way they plan for, contract, and implement BPO services initiatives to improve performance in this key area. Hackett’s research also found that globalization remains a largely cost-driven process. While process improvement, the ability to focus on the core business, and quality were all cited as “Important” decision drivers, only cost was identified by the study group as being “Very Important.” Visit www.TheHackettGroup.com. U.K. Beef Company Implements GXS Solution to Enhance Order Management Anglo Beef Processors, said to be one of the largest beef companies in Europe, has deployed GXS Trading Grid to automate trading with its business customers. ABP works in a complex business environment with a high volume of customer orders and needed a reliable and flexible solution for its ongoing electronic trading requirements. The company needed a solution that could help it efficiently manage orders with accuracy and speed for quick dispatch to customers. ABP slaughters and processes in excess of 300,000 cattle per year in the U.K. and supplies many supermarkets there with their beef products, including premium ranges like Jamie Oliver, Royal Valley, Scotch Prime and Herdsman. In a typical day, the company might receive 10 orders from one of its supermarket customers, with each order containing around 100 different product SKUs. It is vital for ABP’s continued business success that these in-bound orders are filled quickly and dispatched within 24 hours. “The best thing about GXS Trading Grid is its absolute reliability,” says Richard Baran, group IT infrastructure manager at ABP. “It does not require constant maintenance which frees up a substantial amount of our time for other important projects. GXS Trading Grid is tightly integrated with our back end ERP system so we can IBM Creates RFID-Based Solution to Track LPG Containers for Indian Petroleum Refiner IBM is implementing an RFID-based container tracking solution for Hindustan Petroleum Corporation Limited (HPCL), a Fortune 500 company and a leading refining and marketing organization in India. The deal reportedly is one of the single largest implementations in India for RFID-based tracking solutions and involves infrastructure services, business consulting services and middleware solutions. IBM will design, deploy and integrate the RFID solution for tracking LPG cylinders from plant to the end consumer. The project is expected to cover 500,000 cylinders in the initial phase. HPCL intends to evaluate the technology and deploy the same in a phased 26 OCTOBER 2008 http://www.gxs.com http://www.ngcsoftware.com http://www.TheHackettGroup.com

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Global Logistics and Supply Chain Strategies - October 2008

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