Global Business Services (GBS) is a relatively new word and service model that evolved from the Shared Services Model, which has been around for longer. Due to the many advantages of centralization, we have observed an increased integration between Supply Chain Processes and Global Business Services over the last few years for large firms. We want to provide you with a fundamental grasp of GBS services and SSO, how they connect to the supply chain, and what a company’s supply chain process might anticipate gaining from utilizing such a service model so that one can avoid being caught up in the hype before it’s too late.
What do Shared Services and Global Business Services mean?
Shared Service
You may be familiar with the term shared service since it is typically used to refer to a shared service designed to support back office operations like accounts payable, IT, or any high-volume transactional activities that are simple to automate. Various large businesses have these kinds of shared region or global shared service centers to assist their back-office operations, The centralization, automation, and standardization processes are at the heart of shared service.
Centralization: Take advantage of scale economies
Automation: Using new technology, deliver savings and expand scalability
Standardization: Improve processes through standardization to reach the ultimate objective of cost savings.
Service for Global Business
The GBS model, which emerged in response to new demands, is fundamentally a more sophisticated and integrated version of the shared services concept. Unlike shared services, which might be regional, national, or multi-national, it is worldwide. In contrast to shared services, GBS global business service provides services that go beyond simple transactional needs and can supply and integrate a variety of high-value functions into the process, including consultancy and data analytics.
A global business services model’s ability to provide higher value functions also means that it has embraced new tools and technologies to do so. A GBS services company behaves more like a business partner with equal standing to the company it serves than as a service provider. It controls and manages the process like a corporation would.
Advantages of GBS
- The cost optimization
- Productivity gains
- Quality enhancements
- Increased compliance
Other Advantages
- GBS compliance services offer a means of establishing a standardized auditing and compliance procedure in a single location.
- Processes used in the supply chain across all business divisions can be efficiently centralized, which improves quality, productivity, and agility.
- A better customer service experience is imparted by standardization and the usage of performance measures. Continuous feedback loops also give possibilities for improvement on the inside and outside.
- Risk management is made simpler and more uniform in a standard supply chain.
- By utilizing resources, a corporation can create space for other types of reinvestment, such as new products and services development, the investigation of emerging markets, and more. Since GBS handles all transactional activities, leaders may concentrate on more value-based endeavours.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.