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Related Experiment Videos

The superefficient company.

M Hammer1

  • 1Hammer and Company, Cambridge, Massachusetts, USA.

Harvard Business Review
|September 12, 2001
PubMed
Summary
This summary is machine-generated.

Streamlining cross-company business processes requires a four-stage approach: scoping, organizing, redesigning, and implementing. This collaboration enhances efficiency and reduces costs by improving data flow and coordination between organizations.

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Area of Science:

  • Business Process Management
  • Supply Chain Optimization
  • Inter-organizational Systems

Background:

  • Companies excel at internal efficiency but struggle with cross-company process coordination.
  • Inefficiencies in data exchange lead to errors, duplication of effort, and significant costs.

Purpose of the Study:

  • To outline a structured approach for streamlining cross-company business processes.
  • To provide a framework for improving collaboration and reducing operational waste between organizations.

Main Methods:

  • A four-stage methodology: scoping, organizing, redesigning, and implementing.
  • Case studies illustrating the application of the methodology in supply chain and product development.

Main Results:

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  • Successful integration of forecasting and fulfillment processes (Geon).
  • Coordinated logistics for cost-effective delivery (General Mills and Land O'Lakes).
  • Demonstrated reduction in inventories, working capital, and shipping times.

Conclusions:

  • Structured collaboration is key to overcoming cross-company inefficiencies.
  • Redesigned processes can lead to significant cost savings and improved operational performance.
  • This approach redefines traditional inter-company relationships and collaboration.