E-Z-GO 2001 Annual Report Download - page 15

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Textron Annual Report 13
As a coordinated network of globally strong businesses and powerful brands, Textron
has the potential to create significant shareholder value by accelerating our supply chain
management program and creating internal shared service organizations to increase our
efficiency and reduce costs. In 2001, we made significant progress toward realizing these
benefits and unleashing the pow er of the enterprise.
Supply Chain Management
Our new ly launched supply chain management program aim s to realize the benefits
of enterprise-w ide integration in the areas of procurem ent, logistics, manufacturing,
dem and forecasting and service/support. By effectively managing our entire supply chain,
we generate significant savings, achieve greater operational efficiency and im prove overall
customer satisfaction.
Initially, we are focusing where the opportunity is m ost apparent – strategic sourcing.
With annual production and non-production purchases totaling nearly $6 billion, we are
leveraging our buying pow er, developing low -cost, global supply sources and using
com petitive bidding events like reverse e-auctions to realize savings. For example, in 2001
we conducted several reverse auction events in w hich suppliers were invited to bid on
contracts for m achine components. During one event, 55 suppliers provided competitive
bids to eight Textron business units, resulting in more than $5 million in annual savings on
a com bined $25 million spend.
Our next step is to expand our efforts beyond strategic sourcing to include the entire
supply chain – from forecasting and manufacturing to distribution and field service/support.
of the enterprise.