HARRISBURG, Pa. and ARMONK, N.Y., Jan. 21 /PRNewswire-FirstCall/ -- Worldwide industrial services company Harsco Corporation (NYSE: HSC) has selected IBM (NYSE: IBM) as its consulting partner for a business transformation initiative designed to create significant operating and cost efficiencies throughout Harsco's global supply chain, the companies announced today.
"The intelligent supply chain of the future aligns perfectly with our One Harsco objectives for creating long-term strategic advantage as a more globally integrated and optimized enterprise," said Harsco Chairman and CEO Salvatore D. Fazzolari. "Working with IBM gives us access to one of the premier leaders in this field. Moreover, when completed at the end of 2010, we expect this project to improve our Return on Invested Capital and also contribute to Harsco's Economic Value Added (EVA®) growth."
IBM will perform an analysis to determine where improvements in Harsco's supply chain can be made. IBM will then develop the roadmap for a fully integrated supply chain that encompasses sourcing, procurement, logistics, planning (demand and supply), inventory and order management, and cash management. Work is scheduled to begin this month with IBM teams in place at Harsco's headquarters.
The project is expected to generate significant improvements in internal supply chain planning, logistics, scheduling and integration throughout Harsco's worldwide operations. It will better connect the company with its suppliers, partners and customers for faster execution.
IBM will also work with Harsco to help improve efficiencies and economies in Harsco's worldwide selling, general and administrative (SG&A) cost structure.
"The supply chain is at the heart of Harsco Corporation's global, diversified businesses," said Michael Laroche, global supply chain strategy leader, IBM. "By creating an intelligent business ecosystem that supports the company's growth objectives while reducing bottlenecks and lead times, Harsco will increase its flexibility and responsiveness in the global marketplace."
Harsco Corporation is one of the world's leading diversified industrial services companies, serving key industries that play a fundamental role in worldwide economic growth, including infrastructure, metals, railways and energy. The company's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at www.harsco.com.
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