Strategy of two banking giants
For this week’s case we take a look at the difficulties the company Desko is facing with its order process. Desko is an American company which produces office furniture. Desko does not only produce its products but also delivers them to their American and Canadian customers. After having received cancellations from a major customer Desko decided to further analyze its order process in order to improve this.
We will draw a map of its order process and create a list of problems which are tied to it. Above that we will complete the map of the credit verification sub-process and come up with ideas to improve this.
If you were Mr. Moore, and based on the information …show more content…
Some flaws cannot be easily corrected, such as the errors made while creating the order in the ERP systems, or losing orders during the transportation to the account manager.
However, other deficiencies which exacerbate the overall process with a larger magnitude can be identified and possibly corrected through strategic changes.
The focus in this segment will be primarily on two stages of the order process, namely the shipping and the production.
In the entire process, production and shipping appear to be the bottleneck, due to a lack of flexibility in manufacturing and storage issues in distribution.
In order to emphasize these shortcomings, a process map is depicted below.
Depicted in the flow chart is the sub-process of the production stage. At first the ERP system determines whether the product is Make-To-Order (MTO) or Make-To-Stock (MTS).
MTO production is used for products that are specifically requested by a company and MTS production goes straight to inventory.
The planning department prepares the stock keeping unit (SKU) list in respect of the sales budget and the production rate. As mentioned earlier this forecasting procedure takes into account the sales of the last 13 months but not the current trends or MTO production. The MTO production could be ideally used to forecast, since it perfectly reflects its customer’s tendencies.
The SKU is then sent to the plant