Superefficient Company

826 Words2 Pages

In the search of increasing profits, companies focus their efforts in streamlining their internal processes - reducing costs, optimizing daily operations, and improving product quality, becoming internally efficient. Although this is a successful approach to prove operational improvement, is halfway to build sustainable growth and to ensure customer satisfaction. Streamlining internal and cross-company processes, is the long-run win-win strategy that generates superefficiency.
Streamlining Internal and cross-company processes
When cross-company processes are not coordinated, a vast number of activities end up being duplicated. Moreover, when activities and data make the jump between companies, inconsistencies, errors, and misunderstandings routinely arise, leading to even more wasted work. In consequence, employees typically have to be assigned to manage the cumbersome interactions between companies. Streamlining cross-company processes is the next great frontier for reducing costs, enhancing quality, and speeding operations.
Geon, a leader in the plastics resins manufacture industry, established itself as the world's largest producer of polyvinyl compound (PVC), and in the 1990s, was a vertically integrated business. The following are Geon’s manufacture processes.
Phase 1:

Phase 2:

Phase 1: By integrating and simplifying its core business processes and installing an ERP system to support them, allowed information and transactions to flow more easily among different parts of the company. Overall productivity got a strong boost. Geon had control of all its supply chain, and this internal optimization worked as well as a cross-company one. Then, in 1999, recognizing that it did not have the sales volumes necessary to produce VC...

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...milestone, the greater the risk that the whole thing will unravel. The second principle is “communicate relentlessly.” Redesigning an intercompany process not only changes people’s jobs, it also changes how they think about and relate to other companies. Information sharing, openness, and trust need to replace information hoarding, suspicion, and downright hostility.

In conclusion, success today often hinges not only on finding customers, business partners and vital information in all its various forms, but in connecting with each of them, interacting and integrating each into the core systems that are central to a company success.
Streamlining cross-company processes is the right approach to exploit a company core competences to develop a competitive advantage in the market, and as a result increasing profits, overall customer satisfaction and sustainable growth.

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