Business shared services model as a catalyst of cost reduction in East African Breweries Limited

Abstract

The business shared services model (BSSM) seeks to integrate service delivery between the headquarters and subsidiaries for the general good. In this paper, the role of BSSM as a catalyst of cost reduction in a manufacturing firm was explored. The predictive power of human resource shared services, finance shared services, logistic shared services, and customer shared services on cost reduction in East African Breweries Limited (EABL) was determined. Using a sample survey of 149 employees, it was established that a BSSM is a positive catalyst of cost reduction in the manufacturing sector in EABL. Adoption of BSSM fosters a distinct culture of collaboration resulting in efficacy in logistics services delivery.