Outsourcing your warehousing, distribution and other supply chain functions is not just about reducing costs and speeding up deliveries. Some companies use this outsourcing strategy to achieve a more dramatic impact on their competitive advantages.
Before Del Monte Foods decided to outsource its customer interaction management, the company held yearly sales meetings. Representatives received five-inch binders filled with information about products, clients, and company information. The system proved to be very ineffective because it was time consuming, and the information became out of date long before new binders were issued. \x0d\x0aThen Del Monte began using outsourced Marketing and Sales Effectiveness (MSE) tools from Proscape Technologies.
An enormous impact on a company’s profitability comes from its procurement or purchasing process. Some companies are starting to recognize the impact, but most — particularly midsize or small companies — still treat this important process as though it’s unimportant. But, like the fairytale Cinderella, someone needs to do the onerous chores around the castle. Particularly in lean times when an economy is slowing, executives must pay more attention to the possibility of saving millions of dollars in this area.
Nestle is Quick to Adopt EProcurement In the world of Web, companies have to be quick to survive. No one understands that better than Nestle S.A., the world’s largest food company. Today executives have come to realize their customers’ satisfaction — or dissatisfaction — was linked to the performance of their supply chain. Bernard Teiling, assistant vice president of business process integration for Nestle S.A., which is based in Vevey, Switzerland, says supply chain management (SCM) is both a source of competitive advantage and a lever for profit margin. Even though the complexity and the cost of SCM has continually increased over the last two decades, companies must be proficient in this process. If you are not good at SCM, someone else will be, says Teiling. Nestle defines SCM as the two-way management of the flow of goods, services and information from suppliers to manufacturers, wholesalers, distributors, stores — to the end user. SCM is especially critical for the food industry becaus
Heinz Makes Its New Provider Play Catch Up… Karie Willyerd was in a pickle. The general manager, executive and leadership development, for H.J. Heinz in Pittsburgh, Pennsylvania, had to present her succession suggestions to the CEO in January. She just signed an outsourcing agreement in December. Could the provider meet her inexorable deadline?
The study results provide valuable information and insights on global trends and developments in this important field, in terms of company experience, executive attitudes, satisfaction levels, strategic benefits, and usage by country and industry.
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