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Operational Excellence - Why You Need It

5/3/2013 4:13:55 AM Posted by Erin Carrather

We’re all on the quest to “get ahead.” Chances are your organization is constantly seeking new ways to improve your profitability significantly over the next two years or so. If you are looking to improve the quality of goods and services, reduce costs, increase speed, and enhance your flexibility, you need to be looking at new ways of operating. To achieve this competitive superiority, you need to enhance your operational methods. By starting a quest to reliably meet and exceed customer expectations with cost-effective processes, you’re on the right path to operational excellence, but still have a few factors to take into account.

It is crucial that your company makes a commitment to consistently deliver quality products or services to your customers at the right costs, in the right quantities, on the right dates, and at the right locations. But, sometimes this is easier said than done. Because there are various obstacles involved in gaining cost and operational efficiencies, you need strategies that deliver value collectively and allow you to be more competitive in your industry. There are many ways you can go about accomplishing these goals and taking planning, production, and customer care into consideration is the first step in a right direction towards ensuring business viability. Additionally, there are Key Performance Indicators (KPIs) that are important to keep in mind as you being to measure operational excellence and accelerate your business decisions:

  • Increased profitability and margin
  • Reduced operating costs and cycle times
  • Maximized cost savings
  • Heightened quality of products or services
  • Improved customer service ratings
  • Guaranteed compliance

By keeping these KPIs in the back of your mind, you are already on a good track to operational efficiency. Luckily, SAP Business One is focused to integrate related business processes across company boundaries while taking the above KPIs into consideration too. SAP Business One allows you to focus on end-to-end business processes, not the software’s components. By taking this approach, you can not only better support your company’s drive for operational excellence, but will be delighted with this new approach. The fact that there is a solution that can now support end to end industry processes with configurable process-oriented functionality makes a world of difference. It is this relationship between your business & SAP Business One that will eventually allow you to establish business process platforms while providing the foundation and flexibility you need to transform your business network. Stay tuned for next week’s blog where I will go into detail on these business processes and how, with the help of SAP Business One & Third Wave Business Systems, they can become a seamless part of your everyday business life.

Weiland, Rolf, "Achieving Operational Excellence. How SAP's Process Approach Arms You with the Tools You Need," SAPinsider Feature Article, www.WISpubs.com, July-August 2008, www.SAPinsideronline.com