Industrial services company Harsco Corp. has selected 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 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,” says Salvatore Fazzolari, chairman and CEO of Harsco. The project, which should be completed by the end of 2010, is expected to improve Harsco’s return on invested capital and also contribute to the company’s economic value added growth, Fazzolari notes.

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’s global, diversified businesses,” says 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.”