Wednesday, June 13, 2012

Not asking for help can be a problem

In every industry, growth and profitability are reliant on how a firm manages and allocates its resources.  Top and middle level managers are often the people responsible for ensuring that their particular firm remains competitive and profitable for its shareholders.  Sometimes the best resources a firm can attain comes from outside help.  Of course everyone has heard of outsourcing and how the use of it can make a company more profitable by having goods or services produced outside of the firm.  
Another way a firm can use outside sources is by acquiring new business models from companies who operate in the same types of industries.  This is exactly what Directv did in order to be able to meet customer    demands as well as sustain growth for the future.  Directv partnered with CSC in order to develop this new business model.  CSC is a global consulting group that helps companies develop technology-enabled solutions to help companies meet their specific goals and needs.  With the help of CSC, Directv was able to introduce a new business model regarding their supply chain that would lower costs and allow Directv to install and fulfill customer orders in a shorter response time.  According to Michael Bek, a senior manager in CSC's supply chain division,

                      "Directv's order fulfillment volume increased 300 percent with only a single-digit personnel increase. Recovery and repair costs dropped by more than 10 percent, and processing time for customer credits decreased by 85 percent. Directv also began redeploying refurbished hardware back into distribution channels, saving millions of dollars in deferred purchases of new hardware."

1 comment:

  1. I forgot to post my works cited....

    http://www.csc.com/communications_media_and_entertainment/success_stories/9388-directv_grows_after_supply_chain_makeover

    ReplyDelete