5 benefits of lean practice in customer-facing functions
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OmPrompt Executive Checklist
5 benefits of lean practice in customer-facing functions.
1. Bottleneck analysisWhen problems beleaguer customer-facing functions (order or invoice processing backlogs, missing proof of delivery documents, exception han-dling, high levels of customer queries or complaints) the normal reaction is to increase the number of staff in tandem with the workload. In many cases though, further examination will spotlight a poorly designed or broken process. If a high number of orders require manual intervention the backlog of orders will grow and so too the number of customer enquiries. Employees end up fighting the fires and customer service is constrained.
2. OmPrompt. 5 benefits of lean practice in customer-facing functions.
It is often the case that legacy systems cannot deal with the diverse range of communications formats in transac-tions with customers. This is likely to cause a bottleneck, which if removed frees the operator to deal with the few exceptions that require customer contact.
Bottlenecks become obvious once the process is looked at from the customer experience angle, but both customer and supplier suffer the effects of interruptions or long waits for informa-tion that undermines lean practice. Using customer automation manage-ment as the standard, gaps in support
for multi-format and intelligent busi-ness rules processing, master data validation and accelerated exception management become easy to identify and resolve.
2. Continuous flow (at the right price)Suppliers bear the cost of the under or over provision of logistics required to ensure the continuous flow of goods under every type of fluctuation in demand from retailers. Some of these fluctuations may be the result of special promotions, extreme weather or normal weekend and holiday peaks. Many suppliers operate a core fleet and use subcontracted transport companies or third party logistics service providers (LSPs) to cover peak periods. These providers can also extend geographical reach or provide specialist services. The ability to quickly on or off-board logistics capac-ity is crucial to maintaining the best service at the best price.
Suppliers of consumer goods, pharmaceuticals, medical devices and logistics have lagged behind heavy-industry manufacturers in their take-up of lean tools and philosophy but that is changing. After implementing lean improvements at plant level there are moves to apply lean to other areas including customer-facing functions.
If a high number of orders require manual intervention the backlog of orders will grow.
Under customer automation manage-ment human talent, process and technology combine to resolve and drive down the numbers of exceptions in a process of incremental and continuous improvement.
4. KPIs (Key Performance Indicators)KPIs are powerful drivers of the behav-iour that encourages progress towards corporate goals. KPI metrics are also an effective tool for exposing and quantifying waste. As suppliers move to shared-service models for customer facing functions (customer services, call centres) they can use KPIs to analyse local perfor-mance for best practice to improve weaker areas before the transition. However, this is only possible where process is the same across countries or regions, where it is a like for like comparison.
It also becomes more important for systems (not people) to handle diversity in customer data formats as capacity for dealing with inefficient process is condensed into a highly skilled central-ised unit that should be focused on commercial drivers.
Over time, a company might have approached order processing in different ways across regional bound-aries, with methods that included manual, semi-automated or out-sourced options. Customer automation management straddles all methods, unifying order processing across borders and systems.
Global efficiency can only be achieved by ridding the organisation of wasteful practice before migrating to a shared-service model that can successfully operate against enterprise KPIs.
5. Error proofingErrors apparent at start of the order to cash process fall into two categories, those that exist in master data and those that are introduced during the rekeying of information. Systems that can process multiple data formats deal with master data errors under a process of continual improve-ment. Exceptions are flagged, corrected and from then on dealt with automatically according to the prevail-ing business rules.
Errors introduced by customer-facing staff (preceding the introduction of customer automation management as the continual improvement process) occur when systems are unable to handle the diversity of order formats from customers and require manual processing. Errors tend to get signifi-cantly more expensive to correct at each stage of the order-to-cash process.
The order-processing platform that handles every type of order format can effectively error-proof the process from all but the rare exception.
3. OmPrompt. 5 benefits of lean practice in customer-facing functions.
Many transport providers are unable to feed real-time trip event information into supplier ERP systems. Transport offices are then forced to broker messages, phoning supplier and retailer to fill gaps in technology and process. In busy periods increased human intervention is the only way to alleviate communications bottlenecks.
Using customer automation manage-ment to manage the diversity of systems and process in this fragmented market makes crucial information visible to all those controlling the flow of goods from supplier to retailer. The benefits extend across the logistics network accelerating the on and off-boarding process.
3. Continuous improvementCustomer-facing staff often spend time working around the systems they feel impede their productivity. They search for information and correct mistakes in master data. Mistakes in product descriptions, codes, delivery informa-tion, order quantities and pricing all require investigation. They are tempted to store that corrected infor-mation in a personal silo for easy access. Data becomes hidden from the business.
When process and systems work together and regular and predictable communications are automated, staff can focus on the exceptions. As each exception is understood and the correct business rule applied, it joins the pool of automated transactions.
About OmPromptAs the pioneer of customer automation management, OmPrompt helps a growing number of the world’s leading brands eliminate gaps in the order-to-cash process that have tradition-ally required manual workarounds.
OmPrompt has innovative ways of automating repeti-tive manual work in the customer management cycle, enabling clients to free resource, manage by exception, remove restric-tions, and eliminate risks to their businesses
Based in Oxfordshire, UK, OmPrompt processes transactions for major brands in 33 countries on five continents.
Download below for guidance on where to look for efficiency gaps in order, fulfilment and cash processes.
Customer automation managementThe Customer Automation Management suite from OmPrompt offers a compre-hensive range of integrated capabilities for automating the order-to-cash process.
Our intelligent, cloud-based solutions are delivered as a service, co-exist with EDI-based solutions, are quick to deploy, easy to extend, and offer an exceptionally fast ROI.
Unlike traditional approaches that depend on the imposition of standards, our solutions have been designed from the ground up, to embrace and support the diversity in supplier-cus-tomer relationships.
Find out more by requesting our guide: 6 steps to transactional excellence that will deliver superior customer service.
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