Chapter 4. The Financial Impacts of SCM—Finding the “Sweet Spot”
From 1991 to 1998, the world's largest information systems manufacturer, International Business Machines (IBM), underwent a radical restructuring that has affected every area of its business, especially its supply chain. Between 1991 and 1995, the company's primary business, manufacturing computer hardware and peripherals, suffered intensely. During this period, the company lost 15 billion dollars! (That's a lot of money, even for IBM.) Moreover, the company became so big that it forgot the two major concepts that had made it successful: customer focus and technology leadership.
Enter Louis Gerstner, the new CEO. Gerstner previously led R. J. Reynolds in the food industry, ...
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