Getting Ready for
the Recovery
Continued
One high-impact solution in this area is Oracle’s Agile product lifecycle management (PLM) applications, designed to minimize product costs and risks by involving designers and suppliers earlier in the product development process. “Many companies don’t realize that designers usually make the majority of all parts and supplier sourcing decisions, typically locking in up to 80 percent of a product’s costs very early in the product lifecycle,” explains Singh. “Using Agile PLM, you can engage designers earlier in the design process and have them leverage corporate sourcing strategies, downstream manufacturing plans, and supply chain constraints. Using a PLM solution such as Oracle’s Agile software can improve product margins at launch by 5 to 15 percent.”
Another ROI strategy to drive down the cost of goods sold is to lower logistics costs through transportation management solutions. With transportation costs accounting for half of all logistics spending, many companies are turning to technology to lower logistics costs before energy prices rise again. Solutions such as Oracle Transportation Management can save most companies 5 to 25 percent of their logistics costs, and typically pay for themselves in less than 12 months. Savings come from improvements in carrier bids, expedited shipment reductions, improved shipment execution, inventory reductions, and lower freight payment and billing transaction costs.
A Better Way to Reward Your Customers
At the Oracle CFO Forum, Colvin also spoke about the need for companies to rethink their approach to delivering value to customers during recessionary times. “The best companies realize that their customers face new problems, and provide them with new solutions that address those problems,” explained Colvin. He encouraged companies to think creatively about how they can redefine value for customers in today’s environment, such as offering consumers a slightly lesser experience at a lower price.
Redefining value for customers can also come in the form of strengthening bonds with your most loyal customers, who often account for the majority of profits during tough times. In his keynote, Singh cited Alaska Airlines as a great example of a company that is successfully leveraging technology to help redefine its value proposition to customers. The carrier, already a leader in customer satisfaction surveys, recently implemented Oracle’s Siebel Loyalty Manager solution to provide more-personalized service to its frequent fliers through multiple distribution channels, including mobile phones.
“Using Siebel Loyalty Management, frequent fliers on Alaska Airlines can get alerts on their mobile phones when service disruptions happen, or receive promotions based on personal information gathered from their profiles or travel history,” Singh explained. “Alaska Airlines is taking a proactive approach to increasing its market share during the downturn, using Siebel Loyalty Management solutions to improve the traveling experience of its customers.”
For More Information
Leadership Strategies for Success
Connecting with Citizens
Fine-tuning Oracle’s
Finance Organization
Smart Strategies to Prepare for the Recovery
Oracle Applications
Anne Ozzimo is senior director of applications product marketing at Oracle.
