Wizard way to export windfall

By ADAM GIFFORD

The New Zealand subsidiary of global consultants Mi Services Group expects to earn millions of dollars from exporting software that makes supply chains more efficient.

SCORWizard, which sells for $US10,000 ($24,000) a user, has been bought by the United States Marine Corps, silicon-chip maker Intel and corporate customers in New Zealand, Australia and Europe.

"It's taking off on us. We expect to make millions from it next year rather than thousands," said Mi Services New Zealand chief executive John Quirk.

SCORWizard grew out of work optimising supply chains at Carter Holt Harvey and Fonterra.

"Our consultants wanted to automate the Supply Chain Operations Reference manual [SCOR] developed by the Supply Chain Council, but it rapidly evolved into a software product," Mr Quirk said.

"It started off simple and got more sophisticated, so now it maps business process, measures key performance indicators and benchmarks everything against best practice."

SCORWizard produces reports which suggest where improvements can be made, drawing on the experience coming out of the Supply Chain Council, a body created by some of the world's leading companies to standardise supply chain terminology and establish best practice.

Mr Quirk said that by identifying areas for improvement along the entire supply chain, an organisation could make pragmatic decisions about which areas to tackle first and quantify the potential return on investment for a project before starting it.

Supply Chain projects typically give returns of between 3 and 15 per cent of an organisation's revenue. SCORWizard aims to ensure these returns are achievable.

"The beauty of SCORWizard is that it demystifies supply chain consultancy. Companies can do the analysis themselves, rather than relying on consultants.

"It puts on notice the large consulting organisations that charge multimillions for these types of assignments."

Mr Quirk said Mi Services Group globally had adopted SCORWizard as a strategic focus.

"It's a great door-opener. We are selling it to people with whom we have not previously had a relationship."

While customers can buy the software and start using it, most also ask for consulting services.

"SCORWizard is driving other areas of our business, because it provides a clear and strong case for enhancing ERP implementations and beginning supply chain management projects."