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  • White Paper - Capturing the Business Value of Extended Enterprise Management | Archstone Consulting
    needs including organization trading partner and business process Applications are considered either sources or users of information with all information working through a central bus Once EEM is in place data can be taken from multiple applications and aggregated into an individual view for employees charged with supporting specific business processes One very effective way to drive EEM is for organizations to implement a Service Oriented Architecture SOA By focusing on the processes being supported SOAs allow businesses to establish a common integrated data model further enabling communication decision making and information sharing between tools Common standards driven by need and purpose rather than by single platform based applications make it easier for companies to manage their own applications and offers built in flexibility for making system wide changes Executives facing complexity in value chain issues and systems environments within their own organizations can leverage EEM to accomplish their business integration objectives This approach offers superior performance over the enterprise software platform approach in three areas Functionality Speed and Flexibility Cost Functionality Essentially EEM enables organizations to bridge internal organizations and business processes with external trading partners and third parties enabling businesses to better manage their complex value chain processes Using connectivity tools middleware portals workflow integration and others to collect manage and deliver information associated with specific processes companies are no longer dependent on enterprise packages to deliver vanilla versions to match unique or company specific process needs Instead these connectivity tools can be used in conjunction with SOAs to deploy information specifically customized to an individual worker s needs This opens the door to an entirely new way of delivering business capability supported by IT EEM requires organizations to shift their perspective from embracing software packages to embracing the full capabilities of information technology EEM allows businesses to shift from asking what is available in software packages to what is the first best option for fulfilling their business needs Speed Flexibility In addition to enabling first best options in support of business processes and strategic decision making the speed and flexibility that EEM allows ensures quick adaptation to the changing business environment of tomorrow New processes can be integrated and delivered very quickly typically in 30 90 day deployment cycles Leveraging a SOA new functionality can be implemented enterprise wide far faster than enterprise tools have previously allowed while improving information flexibility By looking at IT from the perspective of EEM an organization frees itself from being bound to major software package release schedules or its own confounding legacy information infrastructure Once an organization embraces these IT principles for EEM they find that the time necessary to deliver capabilities to the organization improves by a factor of 5 to 10 A major aerospace and defense firm found it could deploy complex multi party processes in 60 day cycles where previously capability was either unavailable or took 1 to 2 years This approach shifts IT emphasis from large multi year capital projects to a smaller more nimble or bite

    Original URL path: http://www.archstoneconsulting.com/services/it-strategy-opeations/white-papers/capturing-business-value.jsp (2016-04-24)
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  • White Paper - Optimizing IT Technology Refresh Policies | Archstone Consulting
    needed if these benefits are to be fully realized First Things First Analyze the IT Hardware Landscape Optimizing an IT hardware refresh policy starts with an analysis of the current IT hardware landscape There are 5 steps to the analysis and the effort is usually led by the IT engineering group First all IT hardware assets should be identified and reviewed The fixed asset system and other internal asset databases are the usual starting points However in most large enterprises this initial task can be extremely difficult especially within the distributed computing environment or a company with a decentralized IT procurement process When a central asset repository does not exist analysis teams often work with operational and application teams beginning with the most important applications to do a bottoms up discovery on the types and locations of hardware This initial inventory is then compared to IT purchasing data provided by the procurement team or even from the Accounts Payable voucher report from the Finance team When operational procurement and application teams cannot provide this information analysis teams often go directly to their hardware vendors and ask them to provide detailed purchase information One immediate benefit of this inventory is that teams often discover hardware that is no longer being used network switches in a storage room decommissioned servers still powered up on the data center floor but is still generating operating expenses in the form of hardware and software maintenance and power and cooling costs Clearing the books of the cost zombies is a valuable first step in for many IT organizations With the baseline inventory created each piece of hardware is then categorized by tower and technology platform e g server X86 server Sun storage SAN storage NAS In the best case scenario a configuration management database CMDB will have the hardware make and model information which can be easily mapped to each platform category In less ideal situations free form description fields will require both custom queries and manual work to assign the inventory to the correct categories The next step is to identify each piece of hardware as active or inactive Communication and management software can be used to identify if a hardware device is on the network most teams assume that if a device is not on the network it s probably not being used Operational tools can measure utilization But often the most useful method involves the telephone or e mail scrubbing the inventory with the application and operational teams to identify the active servers that they own The inventory and procurement data for all the assets are then merged producing an age baseline of IT hardware by platform determining the mean median and maximum age for each platform as well as the average life of retired assets This age baseline provides important data that shows not only the age of the current equipment but also the age of equipment that has been previously retired This data is important in developing a fact based understanding

    Original URL path: http://www.archstoneconsulting.com/services/it-strategy-opeations/white-papers/optimizing-it-technology.jsp (2016-04-24)
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  • Case Study - Assisting a Global Consumer Packaged Goods Company in Lowering Back Office Costs and Standardizing Processes through Business Process Outsourcing (BPO) | Archstone Consulting
    back office costs and standardizing its processes through Business Process Outsourcing BPO The Client A global consumer packaged goods company The Challenge Develop a back office service delivery model that will support the company s future growth strategy while lowering operating costs and increasing process efficiencies The service delivery model needed to account for organizational readiness process maturity and operational complexity The Solution Archstone Consulting worked with the client to develop alternative service delivery models for assessment These models included benefits analysis risks and financial business case scenarios Archstone s assessment of current back office operations and detailed business cases led to the recommendation of outsourcing selected processes of three back office functions Archstone continued to advise the client on the chosen solution worked extensively with the client to craft a Request for Proposal evaluate potential service providers and develop a detailed business case Furthermore Archstone played a key role in identifying the necessary retained organization and negotiated governing Service Level Agreements and Statements of Work between the client and selected service provider The Results As a result of Archstone s efforts the client experienced significant bottom line savings streamlined operations and increased process discipline were achieved for the client

    Original URL path: http://www.archstoneconsulting.com/services/shared-services-outsourcing-advisory/case-studies/lowering-back-office-costs.jsp (2016-04-24)
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  • Case Study - Supplier Relationship Management (SRM) Program for Fortune 100 Pharmaceutical Company | Archstone Consulting
    was challenged to improve relationships with strategic suppliers and contract manufacturers In the face of increasing market pressure over source materials the client asked for Archstone s support in improving overall visibility through their global supply chain especially from overseas suppliers The Client A leading U S based diversified pharmaceutical and Life Sciences company The Challenge Developing a comprehensive Supplier Relationship Management SRM program implemented across direct material supplier base Understanding key gaps challenges and opportunities in current SRM practices Aligning stakeholders in support of formal SRM program and vision and developing a customized SRM model incorporating processes tools and template The Solution To develop the SRM program Archstone first reviewed supplier feedback stakeholder requirements and existing resources to help define the stratification process and to strategically refocus resources Part of this approach included designing governance processes and a supplier development program as well as defining training requirements and a communication plan to support implementation The Results The multi wave pilot program was implemented across key CM s and raw material suppliers In particular under this new process the client was able to improve risk management results with a key strategic contract manufacturer identifying and resolving a potential quality problem

    Original URL path: http://www.archstoneconsulting.com/services/sourcing-procurement/case-studies/supplier-relationship-management.jsp (2016-04-24)
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  • Case Study - Driving Cost Reduction and Efficiencies for an Early Stage Biotechnology Company through Improved SRM and Sourcing Capabilities | Archstone Consulting
    The team lacked strategic sourcing experience and bandwidth to investigate savings opportunities Vendor awards for key categories had not been reviewed for many years and the Executive Director of Procurement had concerns about pricing competitiveness Few supplier management practices were in place vendor management of laboratory stockrooms was poor with disorganization and stock outs affecting scientist productivity Archstone provided a manager level resource to work closely with the Executive Director of Procurement and improve processes within the department The Client Biotechnology company The Challenge Identify areas for improvement within Procurement activities build the team s strategic capabilities and establish effective and efficient processes The Solution Archstone examined current spend collaborated with internal stakeholders developed sourcing strategies initiated and analyzed RFPs managed vendor communications and developed transition plans The categories sourced included lab lab equipment MRO office supplies shipping and IT hardware The Results Archstone identified and helped to establish partnerships with new vendors that could drive key benefits to the client both through savings opportunities and improved operational agreements In particular Archstone Identified potential savings of 9 in material costs plus rebates and improved SLAs with transition to a new lab supply vendor Developed a restructured agreement with a new

    Original URL path: http://www.archstoneconsulting.com/services/sourcing-procurement/case-studies/driving-cost-reduction.jsp (2016-04-24)
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  • Case Study - Achieving Cost Savings through Improved Procurement Capabilities | Archstone Consulting
    was a core competency and mature function for this enterprise procurement was not a key capability for most of the indirect spend e g DME Archstone Consulting conducted a review of the client s marketing procurement capabilities to identify areas for improved performance and cost savings The Client Global food products company The Challenge Implement the procurement business processes and tools for the Marketing and Packaging organizations This included improving management controls over procurement activities and realizing improvement opportunities The Solution Archstone s approach included a comprehensive assessment of the client s Marketing spend and procurement processes and capabilities This was followed by a focused Strategic Sourcing effort which included Sourcing Analysis and Execution Detailed analysis and categorization of the Marketing Spend Development of category strategies and procurement improvement plans Identification of high value target categories based on spend analysis business priorities historical sourcing activities marketplace changes Generate high level sourcing strategies and associated savings targets Process Analysis of processes and identify performance gaps Development of recommendations for process gap closure Governance Review existing compliance program policies and requirements documentation of current program results and remediation activities Develop recommendations for compliance program enhancements The Results After a thorough analysis of

    Original URL path: http://www.archstoneconsulting.com/services/sourcing-procurement/case-studies/achieving-cost-savings.jsp (2016-04-24)
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  • Case Study - Reducing Transportation Spend by 37% through Strategic Sourcing | Archstone Consulting
    climate an over the counter OTC consumer division of a global pharmaceutical company was interested in locking in transportation rates As the client had limited experience with sourcing transportation the company engaged Archstone to review their current transportation suppliers and identify opportunities for savings The Client OTC consumer division of a global pharmaceutical company The Challenge Reduce transportation costs through spend analysis and sourcing activities improve the client s North America Outbound Logistics spend analyze line haul carrier related accessories charge backs surcharges billing errors etc The Solution Archstone assessed the current transportation environment collecting data and developing a baseline and evaluating current and potential suppliers Working with the client Archstone evaluated sourcing opportunities by defining transportation requirements and evaluating opportunities highlighted in the spend analysis The team then supported the client throughout the lifecycle of the RFP process Creating the RFP with robust shipment history Conducting the bidding and evaluating the results based on savings models with multiple scenarios Negotiating with the suppliers and developing contracts routing guide Drive day to day execution of the process The Results As a result of Archstone s efforts the client was able to achieve a savings of 4 8M 37 of baseline

    Original URL path: http://www.archstoneconsulting.com/services/sourcing-procurement/case-studies/reducing-transportation-spend.jsp (2016-04-24)
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  • White Paper - Transportation Sourcing in Today's Environment: It's Not About You, It's About Them | Archstone Consulting
    different response tactics and strategies in bidding during Round 2 Looking at a summary of the responses by carrier we found 1 carrier improved every lane on which they bid in Round 1 30 of carriers improved between 50 and 100 of their Round 1 bids 55 of the carriers improved between 0 and 50 of their original bids 10 of the carriers did not improve any lanes One of these carriers was very aggressive in Round 1 and still won a number of lanes 1 carrier even chose to raise rates on 10 of lanes from their Round 1 bids and subsequently lost all business Feedback Round 1 Bid Ranking As we expected none of the carriers focused their Round 2 improvement efforts on lanes where they were identified as the Current Leading Bids Surprisingly however an equal amount of carriers 10 each focused their Round 2 improvements where their Round 1 bids were classified as Top 5 as they did for bids classified as Not in the Top 5 The feedback was clearly relevant to these 20 of the carriers but the carriers pursued improvement opportunities differently based on their company s objectives The balance of the carriers improved their Round 2 bids relatively equally across this category so while they may have found the feedback important on particular lanes they did not base their overall response strategy on the results of Round 1 bid ranking In total carriers who were already leading after Round 1 did not respond aggressively in either frequency or magnitude However for the 14 of carriers who were leading after Round 1 and still chose to improve their bid in Round 2 they did so at an average of 3 8 see Figure 3 which went directly into savings on the lane unless other carriers outbid them Carriers re bid lanes more frequently but for only moderate improvements when they were identified in the Top 5 Carriers who were Not in the Top 5 improved lanes at a moderate frequency but with higher magnitudes Feedback Round 1 Bid Closeness We also provided information on how close carriers were to the Round 1 leaders expecting that carriers who were closer to the leaders would be more aggressive than those who were further away However only 10 of carriers focused their efforts on lanes they were close to winning as identified by Within 10 of Leading Bid A greater number 25 of carriers put a majority of their improvement efforts in Round 2 on lanes where they were further away from the lead Interestingly carriers who were told that they were within 10 of the winning bid improved by an average of only 5 see Figure 4 This would not necessarily move the carrier into the lead for the lane but may have positioned them as a strong alternate carrier for the lane When carriers improved on lanes where they were not within 10 they did respond predictably in a more aggressive fashion Further investigation

    Original URL path: http://www.archstoneconsulting.com/services/sourcing-procurement/white-papers/transportation-sourcing-todays-environment/ (2016-04-24)
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