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With Accenture’s help, this global manufacturer of industrial products was able to transform its operations strategy.
The company is now on track to earn $1.2 billion over 10 years, and has already secured at least one massive new deal—a solid foundation on which to build a high-performance business.
Accenture and the company embarked on a global operations strategy development effort to improve its ability to compete in the new business environment. The initiative focused on expanding the company’s regional capacity in alignment with its growth strategy and increasing the company’s competitive advantage not only with key strategic customers, but also with traditional industry competitors.
To fulfill this strategy, Accenture worked with the company to add four green-field manufacturing centers, two engineering centers and five procurement offices, all in locations that made the most of the company’s best global growth opportunities.
Accenture also helped the company create new supplier capacities and configurations, hire new resources, develop and deliver training, execute product transitions, and start production in four key countries. To allow the company to more effectively confront the proliferation of low-cost competitors, we created distinct supply chain models for premium and commodity markets and helped the company outsource the production of low-end products.
With Accenture’s help, the company is on track to achieve up to $1.2 billion in earnings before interest and taxes over 10 years. This result includes a projected $500 million in new revenue enabled by the company’s new approach to price-sensitive and commodity products: 20 percent to 30 percent reductions in product costs and tax incentives negotiated by Accenture that cover 80 percent of the company’s new facility investments.
Because of its new strategy, the company has been able to make inroads into a critical global products market, which contributed to an additional five-year, $200-million contract in Asia. According to ongoing Accenture High Performance Business research, one of the characteristics of supply chain masters is their ability to incorporate supply chains into their business strategies.
Working with Accenture, the global industrial products company was able to create an operations strategy that effectively supports its overall business objectives, thus helping the company take major strides toward high performance.
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