Transcribed image text: Case Study 2 Avaya (10%) Avaya is a global force in business collaboration and communications technology, and not so many years ago, was operating what, by its own executives' admission, was a worst-in-class supply chain. That situation arose as the result of multiple corporate acquisitions over a short space of time. The company was suffering from a range of supply chain maladies, including a long cash-to-cash cycle, an imbalance in supplier terms and conditions, excess inventory, and supply chain processes that were inefficient and wholly manual. The Supply Chain Cost Reduction Challenge: After Avaya purchased Nortel Enterprise Solutions in 2009, the freshly merged company found itself but loosely in control of an unstable and ineffective supply chain operation. Aside from having too many disparate and redundant processes, the company had multiple IT solutions, none of which provided a holistic view of the supply chain or supported focused analysis. The Path to Cost Reduction: Avaya's senior management team realized that its technology solutions, which varied from being inadequate to inappropriate, were causing many of its problems. The various acquisitions and mergers had transformed Avaya into a different kind of enterprise, and what it needed, rather than a replacement for all the discrete systems, was one solution to tie them all together. To that end, the company put its trust in cloud technology, which was relatively immature at the time, and migrated all processes onto one platform, which was designed to automate non-value-added activities and integrate those critical to proactive supply chain management, namely: • Point of sale analysis • Procurement analysis • Supplier communication • Supply and demand planning Inventory planning • Inbound and outbound logistics planning Of course, the technology was merely an enabler, and to transform its supply chain operation, Avaya embarked on a long-term, phased program to standardize processes, initiate a culture change, invest in top talent, and implement a system of rigorous benchmarking and KPI tracking. Supply Chain Cost Management Results: Avaya's program of transformation took place over a period of three to four years, between 2010 and 2014. The path to cost reduction was a long one, but ultimately successful. By making a conscious effort to lead the enterprise into a new way of thinking, change business culture, and unify technology under a single platform, Avaya has improved inventory turns by more than 200%, reduced cash tied up in stock by 94%, and cut its overall supply chain expenditure in half. This dramatic turnaround also required the company to switch from a preoccupation with improving what it was doing, to a process of questioning what it was doing and why. Question: In your opinion, has Avaya improved inventory turns? Explain your response as to why or why not