Shared services reduce duplications and achieve economies of scale
After a restructuring to speed up decision-making and enhance responsiveness to its customers, Amoco Corporation (merged with BP in 1998), a large USA based producer of crude oil and natural gas, found that it had incurred major costs associated with the duplication of support functions for its 17 strategic business groups. To achieve economies of…
BPIR Categories
5.3.3 Move materials & resources
2.1.8 Understand the internal environment/performance
11.1.2 Manage resource allocation