Diebold 2005 Annual Report
[Introduction][CEO's Letter][Business Priorities][Chairman's Letter][Financials][Index]

There's no question that Opteva, our financial self-service hardware offering, is very popular with customers. We've won orders from about 3,000 customers in 80 countries. The reasons are clear: Opteva features an attractive, quality design that offers improved functionality, reliability and flexibility. We estimate Opteva lowers customers' operating costs up to 15 to 20 percent.

Opteva shows what we are capable of when we listen to customers and work together on a global scale. It was designed with input from different types of customers and consumers from around the world. This enabled us to build a product line that is standardized in some key respects, but that can be more easily configured to customer specifications around the world.

While Opteva represents a big success in terms of global product development, we're also focused on creating a global supply chain infrastructure that's just as good. By this I mean improving how we forecast orders, procure materials, manage suppliers, build products and deliver orders to customers. It's a very important part of what it takes to build customer loyalty - and it's also very important to improving our financial performance.

We combined procurement, manufacturing engineering and manufacturing groups into a single organization focused on driving improvements in our supply chain. We are creating systems and processes to better manage the entire supply chain. We are shortening lead times between order placement and installation. We will make sure that we build quality products and deliver them on time. We will also more effectively leverage our global expertise and global manufacturing footprint to gain a competitive cost advantage.

Many of the pieces to this puzzle are already in place, and we're building those that aren't. A lot of this effort involves better communication among our people and better coordination of our resources. So we're developing the right tools to deliver the right information to the right people at the right time. We're also developing common metrics that enable us to evaluate our performance and quickly respond to issues that arise - and then consistently apply these metrics across the organization. It's a win-win situation: we'll improve customer satisfaction by being more responsive and we'll reduce costs by being more efficient.