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ims ? Provide customers with a single contact empowered to resolve the claim Quadrant II “Differentiated” ?Implement plaint satisfaction surveys to assess the customer’s level of satisfaction with the plaint resolution process AfterSales Service 45 Obtaining Materials amp。 Spirits Wholesalers of America 83 Practice Support Activities Proposal/Engagement Support Centralized source for wholesale distribution industry information: ? Industry Trends ? Performance Statistics ? Best Practices Office Seminar Support Presentations on industry program research. Specific expertise in strategic planning or quantitativelybased consulting engagements. 84 Current / Recent Industry Projects NAW Benchmarking Project 85 Process to Benchmark Purchasing/Inventory Management 3 Chosen for the following reasons: ? Importance to a distributors? business ? Data should be relatively easily accessible 86 WHOLESALE DISTRIBUTION Process Classification Scheme: W/D Operating Process Plan for and acquire necessary resources or inputs * Acquire capital goods * Hire employees * Obtain materials and supplies * Obtain appropriate technology Convert resources or inputs into products * Develop and adjust production process (for existing process) * Schedule production * Move materials and resources * Make product * Package and store the product * Stage the product for delivery 5A. Manufacture or Convert Products Make delivery * Arrange product shipment * Deliver products to customers * Install (if specified) Manage delivery process * Document and monitor order status * Manage inventories * Assure quality * Schedule and perform maintenance * Monitor environmental constraints 5B. Deliver Product Plan for and acquire necessary resources * Hire employees * Obtain materials and supplies * Obtain appropriate technology * Acquire capital goods Develop human resource skills * Define skill requirements * Identify and implement training * Monitor and manage skill development Deliver service to the customer * Confirm specific service requirements for individual customers * Identify and schedule resources to meet service requirements * Provide the service to specific customers Ensure quality of service 6. Deliver Services Bill the customer * Develop, deliver, and maintain customer billing * Invoice the customer * Respond to billing inquiries Provide aftersales service * Provide post sales service * Handle warranties and claims Respond to customer inquiries * Respond to information requests * Manage customer plaints 7. Invoice and Service Customers Obtain Materials and Suppl es 87 Industries Represented in Project 3 Electrical 3 Hardware 3 Industrial 3 Metals 3 MRO Supplies 3 Wine/Spirits 88 Purchasing/Inventory Management Process Workplan The following identifies the five major steps that were performed by the panies in the NAW benchmarking project: ? Goals and objectives of the pany for the process/areas associated with the process ? Documentation on how employees associated with the process are pensated and performance monitored ? Process mapping of the process ? Development of time estimates for employees involved in the process ? Data collection questionnaire 89 Inbound Shipments Filling an Order/ Delivery Forecasting Buying Inventory Control Process to Determine “Best Practices” Inventory Management 3 Recognize need to buy 3 Complete purchase requisition information 3 Confirm with suppliers amp。 Reliable Service” “Management of Problems amp。 Customer Service Obtain Materials amp。 Supplies Mng. Inventories amp。 Exceptions” “Market Differentiation” Reliability Resilience ValueAdded Goal: To enhance the role of outside sales 39 Salesforce Continues to Shift to Inside Sales This Study Last Study 60% 40% 20% 0% Today 20xx Today 20xx 46% 54% 57% 43% 39% 61% 51% 49% Inside Sales Outside Sales 40 Inside Sales Is Being More Proactive and Less Administrative Today 20xx Today 20xx Order taking amp。 enter system 3 Reconcile purchase order amp。 Processing the Order 42 Quadrant IV “Expected” Quadrant III “Proven” High Low High Low USAGE Degree to which the practice is employed Quadrant II “Differentiated” ? Provide one primary contact point for each type of customer ?Measure average wait time “on hold” for customers (., in minutes) ?Integrate telephone response technology and information systems Responding to Inquiries amp。 Marketing Purchasing Warehousing Delivery Administration Sales amp。 Customers Develop Vision amp。 Business Audits ? Contract Audit Services ? Business Risk Control Services ? Litigation Consulting Developing Vision amp。 lower in ?95, flat/lower in ?96 3 Gross margin percentage continues to be flat/declining 3 Operating expense control stagnant/ slightly improving 3 Personnel productivity increasing 3 Cash to cash cycle stable/improving slightly 3 Characteristics of better performing firms: ? Significant difference in operating expense to gross margin percentage lower people and nonpeople expense ? Higher personnel productivity ? Better asset management (less debt, better inventory techniques) ? Do not have significantly higher sales growth or gross margin percentage 65 Hot Buttons in Wholesale Distribution / Opportunities for AA 3 Customer Satisfaction 3 Customer /Product/Vendor Profitability Reporting 3 Strategic Planning 3 Benchmarking 3 Performance Management 3 Sales Force Effectiveness 3 Manufacturer/Wholesal