RESULTS ARE SIGNIFICANT

The careful sharing of data and knowledge, previously considered proprietary
or even sacrosanct, opens the way for the firm to work its relationships with
the most important and immediate supply chain neighbors � customers, distributors,
and suppliers � to find other hidden values within the extended
enterprise. Organizations willing to take the necessary steps with selected business
allies can reasonably expect to achieve the following results:
_ Shorter lead times and cycle times, often reduced by as much as 40 to
50%
_ Better, more accurate order entry and tracking, requiring far less
reconciliation
_ On-line visibility of raw materials, work in process, and finished goods
across the end-to-end supply chain � with the ability to divert goods
in transit
_ Less need for inventory and safety stocks, coupled with an increase in
inventory turns by as much as four to five times
_ Lower warehousing and transportation costs, resulting in a 5 to 10%
reduction in freight bills
_ New revenue opportunities, often in nontraditional areas
_ A reduction in general, selling, and administrative costs in the range of
5 to 10%
Using business process management (BPM) technology to facilitate this
careful sharing and to find the savings cited introduces a new avenue for process
improvement, typically at the point where most businesses are faced with diminishing
returns from their supply chain efforts.


Collaboration and technology are applied as the external cultural barriers are
subdued and together businesses improve processes and infrastructure in parallel,
as they seek the best possible cycle times for process execution, and the
means to generate new revenues, and better utilize collective assets, ensuring
that the best-able company performs the key process steps. Business process
transformation occurs then in an atmosphere where key customers and suppliers
are contributing directly to the process improvements that enhance performance
across the extended enterprise.