2007 Articles
September 11, 2007
Managing Automation: "Avaya Inc.: High Achiever in Customer Mastery"
The broad initiative to understand the problem and change its processes gained Avaya recognition as a High Achiever in Customer Mastery in Managing Automation's 2007 Progressive Manufacturing awards competition.
To help Avaya get a handle of that level of planning, the team decided on Servigistics' Strategic Service Management Solution. They opted for that package over functionality delivered in ERP systems because of usability features and, more important, because Servigistics solved the problem of planning for the field, Boza says. Along with the software deployment, Avaya standardized inventory control processes throughout its organization, for the first time making metrics a core part of its regimen.
The Servigistics rollout went live in the United States in January 2004, with the global deployment expected to be finished by October 2007. Avaya also revamped its service structure, boosting the number of strategic stocking locations to cover the footprint of the United States while reducing the number of individual field offices and trucks by nearly 50%.
...
The results have been fairly dramatic. Avaya has bolstered its service levels for on-time delivery from a sub-standard 80% prior to the Servigistics rollout to a best-in-class level of 95%-plus in the United States. In addition, the company reduced its inventory by 35%, from $200 million to $130 million, while avoiding nearly $4 million in repair expenses.
The most telltale sign of the project's success is the feedback from customers — a totally different reaction than what Avaya was hearing four years ago. Recent customer focus groups and individual discussions with customers have shown positive improvements and satisfaction with Avaya's service levels. Moreover, at the annual user conference this year, there wasn't one question about parts availability. Says Boza: "Not that there isn't any room for improvement, but the message is loud and clear."