SearchSAP.com offers a tasty recounting of an outsourcing nightmare here that resulted in some smart process management efforts.
As reported by Lauren K. Hoyt, TV recording device maker TiVo heard in Fall 2005 from a major service provider that the vendor was closing its doors — two days before it actually happened. This supplier was handling TiVo’s "manufacturing, shipping, fulfillment, store front, and customer support." Whoa! And the closure came during the busiest part of the year, when TiVo was ramping up to fulfill holiday business.
Of course, the story has a happy ending. TiVo brought in BearingPoint to sort through its logistics business and examine how SAP was being implemented throughout the company.
Read the story for the details. One of the lessons recounted: Listen to the ideas that come from the people in sales and marketing about how to change the business processes in meaningful ways.