Research & Insight

Research & Insight

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Outsourcing Conveniently Aligns Retailer’s Operations with Competitive Business Strategies

Outsourcing Center, Kathleen Goolsby, Senior Writer

A few years ago, the typical 7-Eleven® store had a myriad of electronic devices that were not connected. For example, cash registers were not linked to the fuel pumps, which forced clerks to manually enter fuel sales into the registers, slowing the process and missing impulse sales. The situation prevented 7-Eleven from maximizing its profitability. Nor could the store managers effectively manage inventory; there was no way to know with certainty which items were moving well and which ones were simply taking up space. Shelf space in a small store is at such a premium that allowing five or 10 items to sit unsold for a week affects the bottom line.

Direct Route to Competitive Advantage

Outsourcing Center, Kathleen Goolsby, Senior Writer

One of the first value outcomes resulting from shifting ownership of Michelin North America’s logistics process to outsourcing provider, TNT North America, was a $70Million cash flow increase in just one day. The money was then invested in critical strategic objectives. That was just the start of several transformational initiatives the two successfully achieved.

The Trust Factor

Chelsea Yost, Business Writer

Hill Holliday, a marketing firm, wanted to outsource its employee time management. It liked the ASP solution. But first it had to make sure the provider it selected had financial stability.

No Dress Rehearsals

Outsourcing Center, Kathleen Goolsby, Senior Writer

What makes an outsourcing relationship work? A perfectly executed contract is NOT the answer. An outsourcing arrangement is a long-term relationship whose expectationss and attitudes must be realistic. Here’s how to do it right.

Colombian Risk

Outsourcing Center, Kathleen Goolsby, Senior Writer

BP’s motivations for outsourcing were classic, and Getronics has surpassed those needs. Even so, the highly effective risk/reward pricing scheme is a powerful influence on the remarkable success of this relationship.

Getting Hitched

Outsourcing Center, Kathleen Goolsby, Senior Writer

How can you minimize risks when selecting a fairly new company as your supplier? Here’s what BP and Bank of America did when they outsourcing their HR to Exult.

Cultivating a High Yield in Outsourcing

Outsourcing Center, Kathleen Goolsby, Senior Writer

The fourth largest steel company in the U.S., National Steel manufactures steel for the automotive, construction and tin container industries and has annual shipments of almost six million tons of flat rolled products. The company outsourced the housing and operation of its mainframe and data center services to IBM in November 1998 with a seven-year contract worth nearly $60 million. John Davis, CIO of National Steel, explains that they wanted to reallocate its human resources to solve National Steel problems, rather than technology problems. I wanted them working on solutions that would differentiate National Steel from other steel competitors, he says. The company has accomplished that and other goals, and their agreement has yielded far more than they asked for. But, after all, National Steel is no novice to outsourcing. In the 1980s, National Steel spun off its data center (which then became a part of ACS).

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