Sunday, May 17, 2009

Chapter 9 Article: GXS/Verizon Business Tackle Supply Chain Automation


This week I chose an article that has to do with supply chain management going green with the help of GXS and Verizon Business. I did my summary on chapter 9 which talked about the importance of supply chain management and also the key role that technology plays in having a successful business. GXS is an award-winning Managed Services Company, which provides Business-to-Business e-Commerce services around the world. Verizon Business is a sector of the Verizon Communications, Inc. which was developed in 2006 to provide services specifically catered to business. They focus on IP communications and information technology products.

These two companies have joined forces in order to help companies become green in their supply chain management. The way they are doing this is by “ enabling businesses to securely and seamlessly convert manual, paper-based processes into automated electronic transactions among vendors, partners and customers, reducing the use of paper and making business transactions more efficient.” The cost of manual annual processes such as invoicing for a whole company can be cut by up to 60% when automated processes are implemented.

These days it is important for all companies to cut costs when able. Investing in the services from GXS and Verizon Business can save money as well as decrease a company’s carbon footprint. Customers may be more apt to do business with a company that is thinking green. Throughout the article facts are given about how much money and resources can be saved. Throughout the article there are lists of benefits that will occur when after switching to GXS and Verizon Business processes. These facts are valid assuming that one transaction represents two sheets of paper. Below are the savings that are generated by companies currently using GXS’ services;

-- 223 million pounds of CO2, the equivalent of taking 22,820 cars off the road for a year or reducing gasoline consumption by 42 million gallons each year;

-- 132 thousand tons of wood, saving the equivalent of 912,000 trees;

-- 1.5 trillion BTUs of total energy consumption, the equivalent of that consumed by 16,496 homes per year; and

--745 million gallons of water, the equivalent of filling 1129 swimming pools(1).

Without technology progress could not be made in any aspects of a business. With technology, creation and innovation can be achieved. The world is in dyer need of environmental solutions. The services provided by GXS and Verizon Business takes companies one-step closer to making the world a less polluted and more resourceful place.

Works Cited
RBCO Update. (October 1, 2008). GXS/Verizon Business Tackle Supply Chain Automation. Retrieved May 17, 2009, from http://www.accessmylibrary.com

1 comment:

  1. Improving supply chain efficiency is one of those happy intersections of good business and conservation. Excess inventory at any point in the supply chain is wasteful and results in either waste of excessive discounting. One of the best ways to tackle that problem is making information flow smoothly between partners, allowing them to manage information instead of inventory.

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