Why ERM? Because over 60% of alliances don't deliver!

As more and more established organizations realize that they need to form tighter relationships with their customers, partners and suppliers, collaboration with other organizations' people, technology and operations become critical issues. This is not a comforting fact when one considers that over 60% of alliances fail to deliver anticipated results in an environment where firms are only as strong as their weakest partner.

On the other hand, a structured approach to integration and relationship management translates into better top and bottom lines all while reducing risk and maintaining service levels. To find out more, call us at 1-888-879-8440

Financial Performance Gains

• Strategic alliances have consistently produced a return on investment of nearly 17 percent among the top 2,000 companies in the world for nearly a decade. This return is 50 percent more than the average return on investment that the companies produced overall.
• The 25 companies most active in alliances achieved a 17.2 percent return on equity - 40 percent more than the average return on equity of the Fortune 500.
• The 25 companies least active in alliances lagged the Fortune 500, with an average return on equity of only 10.1 percent.
• Successful alliances recognize 20 percent profitability improvements, as compared to only 11 percent for the less successful companies.
• Revenue generation from highly successful alliances equates to 21 percent of overall firm sales, as compared to 14 percent for less successful alliances.

Source: Harbison, J.R., Pekar, P.jr., Viscio, A. and Moloney, D. (2000) The Allianced Enterprise: Breakout Strategy for the New Millennium, BoozAllen & Hamilton.

Operational Performance Gains

• Inventory levels reduced by as much as 50 percent.
  
• Inventory turns doubled.
  
• Stock outs reduced ninefold.
  
• On-time deliveries increased by as much as 40 percent.
  
• Cycle times decreased by as much as 27 percent overall.
  
• Supply chain costs reduced by as much as 20 percent.
  
• Revenues increased by as much as 17 percent.

Source: Gretchen Teagarden, Solomon Smith Barney, 2000