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Banta
Global Turnkey
2 . Background
2.1 Company Information
BGT Global Turnkey (BGT), part of the Banta Corporation,
was founded in 1995 following a takeover of BG Turnkey
Services. With worldwide headquarters in Cork, the company
employs 2,200 people across 11 sites around the globe.
The company serves as a global outsourcing partner to
many of the world's leading technology and medical products
companies and focuses in 5 main areas:
- Global
Product & Product Management
- E-Business
Solutions
- Supply
Chain Management
-
Product Configuration
- Fulfilment
and Distribution
Outsourcing,
the focus of this case, is an arrangement in which one
company provides services for another company that could
also be or usually have been provided in-house. This
trend is becoming more common in information technology
and other industries for services that have usually
been regarded as intrinsic to managing a business.
By way of example, BGT produces around 75% of the retail software
for one of the world’s largest software manufacturers. The
company sends information to BGT on the new product and provides
local language files and documentation. BGT then integrates all
the parts of the supply chain (by pulling together all the respective
parts required to produce the product – see diagram 2.1 below),
produces the product and ships it onto retailers for delivery to
the end customer.
By allowing BGT to handle this part of the process, the customer
can increase and decrease production far more easily than they could
if the process was handled in-house. Additionally, in this case,
it allows them to focus on what they do best – write software
– thus releasing them from undertaking activity that isn’t
a core competency.
In summary, as a global supply chain management partner, BGT manages
physical product flow and provides technology-enabled business and
information management solutions to meet the needs of its clients.
2.2 Market Information
Over the past few years, the terms outsourcing and supply chain
management have become second nature with many companies now offering
clients solutions to decrease cost of sales. Typically, the whole
supply chain could account for 60-80% of the cost of getting a product
to a customer – savings can therefore be made if the supply
chain is managed correctly.
BGT provides services to clients in 6 distinct markets:
- Hardware
-
Software
-
Networking and Telecoms
- Medical
Devices
- Pharmaceuticals
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