ABSTRACT
Two examples of re-engineering of Logistics activities FORD: Ford operated under the old rule: we pay our suppliers after receipt of their invoice, and after matching it with the deliveries. The new rule says: we pay only based on the goods received and validated. Ford has reorganized its supplier’s payments. Old procedure: 14 data had to be matched New procedure: 3 data have to be matched Result: 75 % saving in personal costs
M.B.L., an insurance company: Reengineering of the new customer process: Old procedure: 5 to 25 days for handling (30 steps) New procedure: one manager with full responsibility (2 to 3 days) Results: elimination of 100 field office positions
BPM is the practice of improving the efficiency and effectiveness of any organization by automating the organization’s business processes. BPM used to be also known as Business Process
Reengineering (BPR). The idea of BPM is to bring processes, people and information together. Dynamic infrastructure requires separation of flows, business rules and services.
