business processing at a glance

Know-how of specialists for your success

The process of doing business at a glance
Translated excerpt from the book "Mail Order Management"
Dr. Jan courtesy of Thieme-Verlag Gabler

The optimal level of process

We have at various points in the process of doing business revealed that the sender has choices in the level of service standards. This included the following:

The acquisition cost of telephone at the telephone order-taking
the absence of IVR functionality,
the control of service levels and availability of telephone,
responsiveness to correspondence,
the service-oriented programming of the website,
setting the parameters for subsequent delivery to delivery (time and quantity),
the extension of credit limits,
the offer of a partial payment possibility
the practice of repayment of credits,
the choice of delivery service (including multiple delivery attempts)
Quality efforts in logistics,
the practice of technical customer service (replacement or repair),
customer-friendly payment terms,
the acceptance of credit risks,
Competence, fairness and friendliness of customer service.
Another, from the interaction itself is part of the processes resulting criterion for assessing the level of service to speed the process of doing business. "Today, noon to 12 clock ordered, delivered tomorrow" or "24-hour delivery" are common advertising claims. The process speed is even one of the main evaluation criteria of the process level. Certainly, there are also differences by type senders. Range senders and B-to-B mailers must deliver quickly. Parameters to control the process speed are:

the provision of adequate treatment capacity at all stages of the process such as order processing and logistics, in particular, an appropriate management of workload fluctuations,
the avoidance of bottlenecks in the process by the right set of capabilities for the individual steps of the process and flexible shift any excess capacity,
The extensive automation of process parts, and therefore a good support system,
the precise planning of the process,
the processing of many years of experience in a continuous process improvement.
The speed of the process is not always of equal importance. In the B-to-B selling, about the dispatch of office supplies, it is very important for customer loyalty. Here is also a regular ordering patterns to be expected, so it pays to provide sufficient capacity permanently.

Other shippers offer a fast 24-hour supply as a special service for remuneration; the contract is then brought forward as an express order from other orders. Continuous speed and capacity utilization are alternative to each other in a relationship: If you can take your time, it works just the job mountain continuously with constant capacity.

The level of service is variable in different ways. An increase in the service or process level means higher costs. Average logistics and Fulfillmentkosten per shipment, depending on the range in the order of 2.00 € (books), 7.50 € (outside Fulfillmentdienstleister) or significantly with about € 20.00. Not only is there a relationship between process level and cost, but also between process level and income. The yield shows probably in a better customer durability. It is assumed here also assumes that there is a declining marginal product of the improved service levels.

If this is so, then the optimum process level is reached when the marginal return of an increase in the level of service is the marginal product of alternative uses of funds equal. Alternative means uses may be gaining new customers, the customer activation, rationalization, improved product ranges, a more aggressive pricing policies or otherwise. Until someone can prove that the increased funding for another use a higher (sustainable) marginal product, the service level has to stand back and vice versa.

The optimization problem is so complex and so dependent on the specific situation of a sender that it can not be answered generally. But there is concern about the process of doing business not only a problem of optimization of technical efficiency, but also a real economic optimization problem of choosing actions. To follow the unthinking cry for an improvement in service levels is not displayed. There is an optimum level of service that is not the maximum level of service.

 

The main processes of the shipping trade in the context

The Fulfillmentprozess is summarized in the following graph shown (Figure 19).From the actual process of Fulfillmentprozess or business development, beginning with taking orders, the process of commodity supply is first separated.


Figure 19: The process of doing business
 

The two main processes of the shipping trade, the process of offering provision (see section 2.5) and the process of doing business can be summarized in the following diagram (Figure 20) show.