omprompt - how to build (and maintain) a strategic advantage in b2b supply chains

Thursday 11th June, 2015

The OmPrompt Strategic

Advantage Event

How to build, and then maintain, a strategic advantage

in today's competitive B2B customer supply chains

#strategicadvantage

@OmPrompt

Welcome!

Gina Balarin

Marketing Director, OmPrompt

#strategicadvantage

@OmPrompt

Who’s here today?

6 Reasons Why You’re Here

1. Take away practical strategies

2. See the results of a global survey

3. Learn from industry experts

4. Listen to real-world (warts and all) stories

5. Network with like-minded people

6. Hear how technology can enhance the

customer experience and be a potent

source of competitive advantage.

People Process Technology

#StrategicAdvantage @OmPrompt

Who’s speaking today

Agenda

Time Section Details

13:30 Welcome Building a Strategic Advantage Gina Balarin

13:40 Keynote Address Customer Experience as Source of

Unique Competitive Advantage

Ian Golding

14:20 Reduce the Cost to Serve

while Improving Service

A Financial Analysis of the O2C

Cycle

Thomas Bartsch

15:00 Break

15:20 CX in Practice Customer Service Improvement

Strategies in Practice

Jonathan Kittow

16:00 SSON/ OmPrompt O2C

Survey Findings

Putting the Squeeze on Delays,

Errors and Lost Opportunity

Patrick Strauss

16:20 Break

16:40 The Future with OmPrompt A Roadmap towards Customer

Excellence

Chris Furlong

17:10 In-depth Insights Your Questions Answered Panel Speakers

17:30 Summary Your Strategic Advantage John Wakeman

17:55 Close Gina Balarin

18:00 Champagne etc… Drinks and Food Reception

Customer Experience as a

Source of Unique Competitive

Advantage

Ian Golding

Thought Leader and Certified CX

Professional

#strategicadvantage

@OmPrompt

The slides for this presentation

are not included due to the

presenter’s request for

copyright protection.

Thank You Ian Golding, CCXP

Customer Experience Specialist

+447770 736832

[email protected]

@ijgolding

Connect with me on Linkedin

Follow ijgolding on Facebook

Read my blog at ijgolding.com

Agenda





Ian Golding




Cycle

Thomas Bartsch

15:00 Break



Jonathan Kittow


Survey Findings



Patrick Strauss

16:20 Break


Excellence

Chris Furlong





Reduce the Cost to Serve while

Improving Service.

A Financial Analysis of the

Order-to-Cash Cycle

Thomas Bartsch

Value Chain Consultant

#strategicadvantage

@OmPrompt

Agenda

• The financial opportunity

• An extended perspective of O2C

• Technology enables strategic advantage

• Conclusion

Poor customer experience costs

companies annually

~$350bn across the globe

Source: Genesys with Greenfield Online, Datamonitor (now Informa) and Ovum, The cost of poor customer service, November 2009

25.2%

14.4%

36.2%

24.2%

Pressures on FMCG companies

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-30% -20% -10% 0% 10% 20% 30%

Operating margin 2014

Absolute operating margin increase from 2004 – 2014 (growth)

Weighted average

operating margin 2014

Data from Morningstar: 300 largest global, publicly-traded firms across FMCG sectors (beverages, confectioners, farm products, household & personal

products, packaged foods); weighted average operating margin based on reported and normalized USD revenue

30.6%

23.3%

22.8%

23.3%

Less pressures in healthcare?

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-30% -20% -10% 0% 10% 20% 30%

Operating margin 2014

Absolute operating margin increase from 2004 – 2014 (growth)

Data from Morningstar: 200 largest firms across healthcare sectors (medical devices, medical distribution, medical instruments & supplies, drug manufacturers –

major, drug manufacturers – specialty & generic); weighted average operating margin based on reported and normalized USD revenue

FMCG weighted average


Healthcare weighted average


FMCG

Healthcare

Leaking value through sales & service

Cost-to-serve

Other SG&A1 costs

Cost of goods

REALISED OPERATING

MARGIN

TARGET MARKET VALUE

Revenue leakage

Standard terms

RISK: Too much time spent too late on non-value-added tasks Neglecting defined, profit-focused business rules

1 SG&A = Selling, General, and Administrative

What’s stopping us?

MINDSET AND BEHAVIOUR

UNSATISFIED EMPLOYEES

SHORT-TERM FINANCIAL GOALS

POOR SUPPLY CHAIN PERFORMANCE

From REACTIVE sales & service…

MANUAL ORDERS, GRN’S/POD’S, INVOICES, CLAIMS

PROCESSING LEADS TO REACTIVE BEHAVIOUR

• Data delays and inaccuracies

• Expedited shipments

• Under-shipments

• Over-shipments

• Unconfirmed deliveries

• Claims handling

• Collection delays

• Voluntary turnover

FROM LOSING MARKET SHARE, PRIMARY

COST FOCUS, AND FIRE-FIGHTING…

Losing

$ 60 – 100 per order - or wasting -

5% – 8% of cost-to-serve

…to PROACTIVE sales & service…

CUSTOMER SERVICE SHOULD WORK ON VALUE

CREATING, PROACTIVE TASKS

• Collaboratively analyse/plan with customers

• Drive promotions/cross-sell/up-sell

• Proactively communicate in case of delivery problems,

quality issues

• Improve accuracy/service delivery

• Reduce number/impact of claims

• Improve cash conversion cycle

…THIS LEADS TO SATISFIED CUSTOMERS,

MORE SALES AND HAPPY STAFF

Gaining

1% – 2% value per order - which directly drives -

profit

How can we do it?

RE-ARTICULATE THE BUSINESS VALUE

to achieve better customer experience, sustained revenue growth at a lower cost-to-serve

Three areas for differentiation

PROCESS: Extended O2C

Ord

er

en

try

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ho

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g, in

ven

tory

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ies

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ing

/ b

illin

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Cu

sto

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cla

ims

Rev

ers

e lo

gis

tics

Receiv

ab

les,

co

llecti

on

& c

ash

Ded

ucti

on

s

S1 L1 L2 S2 S3 F1 S4 L3 F2 F3

Customer

service LEGEND: Finance

Supply

chain/logistics

Retu

rns

S5

Revenue

Pro

fit

Leakage, labour, process and product costs

Revenue leakage and cost to serve

pushes down operating margins

PROCESS: Extended value-add O2C

Ord

er

en

try

Ware

ho

usin

g, in

ven

tory

man

ag

em

en

t &

fu

lfillm

en

t

Tra

nsp

ort

ati

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Cu

sto

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an

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on

su

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uir

ies

Co

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mer

co

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lain

ts

Inv

oic

ing

/ b

illin

g

Cu

sto

mer

cla

ims

Rev

ers

e lo

gis

tics

Receiv

ab

les,

co

llecti

on

& c

ash

Ded

ucti

on

s

S1 L1 L2 S2 S3 F1 S4 L3 F2 F3

Customer

service LEGEND: Finance

Supply

chain/logistics

Retu

rns

S5

Pro

fit

Leakage, labour, process and product costs

Jo

int

an

aly

sis

an

d p

lan

nin

g

V1

Pro

acti

ve c

om

mu

nic

ati

on

V4

Pro

mo

tio

ns a

nd

cro

ss-s

ell/u

p-s

ell

V2

Imp

rov

e a

ccu

racy &

serv

ice

deliv

ery

V3

Red

uce n

um

ber

an

d im

pact

of

cla

ims

V5

Sales & service

value add

Value-added activities offset revenue

leakage, cost to serve and COGS Revenue

PEOPLE: The service-profit chain

Sources: 1. Heskett, James L., Jones, Thomas O., Loveman, Gary W., Sasser, W. Earl, and Schelsinger, Leonard A., "Putting the Service Profit Chain to Work", Harvard

Business Review, (March–April 1994) 164-174

2. Anthony J. Rucci, Steven P. Kirn, and Richard T. Quinn, “The Employee-Customer-Profit Chain at Sears”, Harvard Business Review, Vol. 76, No. 1, January 1998

0.5% increase in

revenue growth

1.3% increase in customer

satisfaction

5% increase in employee

satisfaction

DRIVES DRIVES

Revenue growth

Profit

External service value

Customer satisfaction

Customer loyalty

Internal service quality

Employee satisfaction

Employee retention

Employee productivity

CHANGE: A financial operating model for O2C

Under-

shipment

Over-

shipment

Unconfirmed

deliveries

Revenue at risk

Cust. service FTE

Finance FTE

Supply chain FTE

Logistics spend

Inventory

E&O / Write-off

Voluntary

turnover

Collection

delay

Total receivables

Maximise

SALES

Reduce

COGS

Reduce

SG&A

Optimise

working

capital

Paper

orders

EDI

orders

Fail: 4%

Manual order

entry

Re-key fail: 2%

Time: 0.25 hours

Exceptions

Time: 1 hour

Manual

GR

Manual

GR/POD

entry

Claims &

complaints

Mismatch: 10%

Time: 0.1 hours

Time: 1 -2 hours

Expedited handling

Lost loyalty 45%

Re-gain shelf space

Unsold inventory

Returns processing

Deductions 55%

Invoice for overages

Scrap and re-sale

Delayed processing

Deductions 20%

Logistics control

Lack of POD/GR

Delayed processing

Past due payments 10-20%

Working capital

Receivables

Activity distribution

Search cost 70%+

More pro-active tasks

Finance FTE

Service level up

Penalties

Refund/credit/fines

Past due AR

Volume increase

Re-stocked inventory

Deductions

Claims

handling

Delayed processing

Escalated complaints 10-20%

Improve accuracy

Receivables

Reconciliation

Customer service FTE

Deductions

Competitive advantage Expedited

shipments

Delayed processing

Day 1 commit 20-50%

Lost sales

Sales/logistics sync

More time spent on non value added activity by

CS & FI staff

LEGEND: Costs/risks Opportunities

Im

pro

ve

CU

ST

OM

ER

EX

PE

RIE

NC

E

Data fail: 8%

Remitta

nce

Defend: 33%

Manual

claims

Conclusion

Technology can

drive change:

1. Get customer transactions

on one technology platform

2. Enforce profit-oriented rules

3. Integrate operating model

across CFO, CMO, & COO

4. Focus on aligned financial

metrics, NPS & incentives

5. Free up resources and re-

allocate to more value-

added activities

6. Integrate O2C with related

functions/activities

“Companies that excel at

the customer experience

grow revenues 4-8% above

their market.” Bain & Company, April 2015

“Delivering great journeys

can boost revenues 10-

15%, lower costs to serve

10-20%, and increase

employee engagement 20-

30%.” McKinsey & Company, February 2015

Agenda

Thank you!

You can contact me at:

EMAIL: [email protected]

MOBILE: 0049 151 2400 2234

SKYPE: 001 415 992 7512

Agenda





Ian Golding




Cycle

Thomas Bartsch

15:00 Break



Jonathan Kittow


Survey Findings



Patrick Strauss

16:20 Break


Excellence

Chris Furlong





Customer Service Improvement


Jonathan Kittow

Director, Simply Supply Chain

#strategicadvantage

@OmPrompt

Simply Supply Chain

Why I’m here… Specialist Consumer Packaged Goods consultancy

25 years

Best-in-class

“Perfect order”

with a wealth of FMCG back office experience…

How does your customer experience Measure up?

Advantage Survey: annual survey inviting qualitative response

from circa 1,000 retail personnel from the major grocers

7 key business areas:

• Business and Relationship Support

• Supplier Personnel

• Category Development/ Support

• Brand/Consumer Marketing

• Trade Marketing/Promotion Practices

• Logistics and Supply Chain Management

• Customer Service/Support

How does your customer experience Measure up?

Importance ratings for Major Multiple Supply Chain priorities

Standard

Service

Level

KPIs

How does your customer experience measure up?

Importance ratings for Major Multiple Supply Chain priorities

Y

Your ranking

within your

category and

the best

performing

peers, are

featured here.

What does

this

mean?

How do I improve customer perception?

What’s the problem? Who’s to say there is one?!

Perception

“The way in which something is regarded, understood, or interpreted”.

Reality can be so complex that equally

valid observations from differing

perspectives can appear to be

contradictory.

http://www.oxforddictionaries.com/definition/english/interpret#interpret__2

Customer Service?

…they just process orders don’t they?...

…they let me know when I can’t have it?!..

Customer Service?

Customer Care?

Customer Supply?

What do they do….?

damage limitation

or

customer support?

Customer Service?


Papering over the cracks of

internal process weakness

to deliver an excellent

perception of service

Customer Service?


Production

Distribution

Sales and Marketing

Customer Service

Customer Service evolution

And most suffer similar challenges: • Not enough time…for orders and customers

• Not enough accurate information…

• Not enough customer understanding…

• Not enough trust…..

the customer experience is not good enough….

"Ask your customers to be part of the solution,

and don't view them as part of the problem. "

Alan Weiss, Author "Million Dollar Consulting"

"The difference between ‘try’ and ‘triumph’

is just a little ‘umph.’"

Bonnie Przybylski, Projects Manager W.R. Grace

“Customer service is not a department,

it’s everyone’s job."

Anonymous

http://www.contrarianconsulting.com/about-alan-weiss/

http://www.contrarianconsulting.com/about-alan-weiss/

http://www.linkedin.com/pub/bonnie-przybylski/5a/b0b/2a4




People

"A man without a smiling face must not open a shop."

Chinese Proverb

Different behaviours drive differing service cultures

• 70% time spent responding reactively

• ‘Chase-the-case’

– Holding orders to maximise case fill

• Chasing for replenishment info

• Juggling orders vs allocations/forecasts

• CS decide who gets what and when

• Sales tell customer at point of failure

Managing retailer customer service level


• 70% time spent planning proactively

• Flag stock issues early

• Weekly report of known issues

• Advise shortfalls, plan alternatives

• Manage issues openly with retailer

• Clear, concise and consistent comms.

• Commercial/ CS team agree priorities

• CS advise customer on day of order

Managing consumer shopping experience


• 70% time spent planning proactively

• Flag stock issues early

• Commercial/ CS team agree priorities

• CS advise customer on day of order

• 70% time spent responding reactively

• ‘Chase-the-case’ mentality

• CS decide who gets what, when

• Sales tell customer at point of failure

Managing retailer

customer service level Managing consumer

shopping experience

Despite the

advances

in technology,

80% of

companies

behave closer to

this model

Improving customer perception relies on knowing where you are starting from..

Perfect Order Score Purpose: Expose the Symptoms of lean performance failures

Output: £ gap between current and Best-in-class performance

3 Value

Stream Mapping

2 Customer Experience

Maps

1 Perfect Order

Benchmark

Customer Experience Maps and Dimensions of

Service Purpose: Map the current experience through the

eyes of the customer

Output: A customer experience map and “To

be” service targets

Value Stream Maps Purpose: Determine the Root causes of

performance failures

Output: Process maps with “To be”

targets

Measuring your customer experience via the customer value dimensions

Customer Value

Management

Commercial

Customer Service

Production

Logistics

* Reliability is a fundamental customer requirement. Without service reliability there is no benefit from, or opportunity to,

invest in any other value-adding dimensions of service

Customer Value Dimensions

How good is your internal customer experience?

Process "Most people spend more time and energy

going around problems

than in trying to solve them. "

Henry Ford, Founder Ford Motor Company

http://en.wikipedia.org/wiki/Henry_Ford



How good is your internal customer experience?

All planning

conducted on

ad hoc excel

spreadsheets

Days stock

calculation

in ERP

System

‘doesn’t

work’

Report

based, not

action

oriented

output

Allocation

process run

on behalf of

Sales by

Cust Serv.

Too many

instances of

running out

of stock at

short notice

Customer Service team maps the ACTUAL tasks:

• Let them tell you what adds value and what doesn’t

• Let them describe ‘What Good Looks Like’

• Identify the barriers and enablers to change

• Recommend the future state option based upon best fit

Change

"Always do more than is required of you."

George S. Patton

http://en.wikipedia.org/wiki/George_S._Patton



A multi-layered approach to deliver a sustainable advantage

What others do

(Best practice)

What is “Lean” target

solution

Value Stream Maps Customer Perception Maps

+ What Adds Value - What Adds No Value

What we do now

(current practice)

What internal constraints stop us implementing the target? Systems, People, Legislation and company policy

Best Fit Solution

People Process Technology

A best fit solution now is better than a world class system in the future...

Best Fit Solution

People

- Organisational structure

- Responsibility and competence

- Skills and development plan

Process

- Defined x-functional activity

- Clear accountability

- Meaningful KPIs

Technology

- Automation

- Accurate reporting

- Timely and responsive

“Know what your customers want most

and what your company does best.

Focus on where those two meet.”

Kevin Stirtz

Thank You

Contact Me

Jonathan Kittow Simply Supply Chain

Mobile: +44 (0)7779 665137

Tel: +44 (0)845 6522251

[email protected]

www.simply-sc.com

mailto:[email protected]

http://www.simply-sc.com/



Agenda





Ian Golding




Cycle

Thomas Bartsch

15:00 Break



Jonathan Kittow


Survey Findings



Patrick Strauss

16:20 Break


Excellence

Chris Furlong





Delays in Your Order-to-Cash

Process and their Impact

SSON Survey Highlights

Patrick Strauss

VP Partner Management, OmPrompt

#strategicadvantage

@OmPrompt

Respondent Profile

O2C Process Maturity

Ownership & Strategies

Benchmarking Performance

Calculating Cost of Errors

Impact of Manual Processes

Business Impacts of Inefficiencies

Agenda





Ian Golding




Cycle

Thomas Bartsch

15:00 Break



Jonathan Kittow


Survey Findings



Patrick Strauss

16:20 Break

16:40 The Future with

OmPrompt

A Roadmap towards Customer

Excellence

Chris Furlong





Technology and Services to

Provide a Strategic Advantage

Through Customer Automation

Management

Chris Furlong

Customer Solutions Manager, OmPrompt

#strategicadvantage

@OmPrompt

About OmPrompt

• UK company

• Serving customer in more than 35 countries

• 10 years experience

• 24x7 operations

• Award winning service

• ISO 9001 & 27001 security accredited

OmPrompt sits between suppliers

and their customers, to automate the

manual paper based processes

such as Fax, PDF & Spreadsheet

transactions.

This creates ‘Touchless’ transactions

and releases staff completely from

the process. EDI - XML - Fax - Email - Spreadsheet - PDF - etc…

Across the entire ‘Order to Cash’ process

omprompt1.mp4

OmPrompt = Strategic Advantage

Any Volume

High Volume

Low Volume

EDI

Assisted Automated

Full Automation

End-to-End Order-to-Cash Solution

The OmPrompt Advantage

• People

Release staff for value-added activities

• Time

Faster turnaround times and cycle times

• Control

Greater visibility, control of the end-to-end O2C cycle

• Accuracy

Reduce keying errors and return logistics

Order to Cash Manual Processes

Finance

• Invoices

• Credits/Debits

• Remittance

• Bank Statements

Logistics

• Proof of Delivery (PoD)

• Goods Received Note (GRN)

• Claims

Fulfilment

• Advanced Shipping Notice (ASN)

Order

• Entry

• Acknowledgement

Forecast

• Contracts - Pricing

• Forecast - Demand

Claims

P.O.D

Delivery

Returns

Credit note

Invoice

Remittance ASN

Contract

Forecast

Documents / Images

Trading Partners

Order Capture Effort

‘Typical’ Profile of Trading Partners / Orders

100% Customers

The OmPrompt Solution

Higher Volume / Higher Quality

Consistent Formats Rule Based automation

• Fully Automated

• Zero Touch

Full Automation

Full Automation

Format

Normalisation

Substitution

Rules

Business

Logic

Splitting

Consolidation

Rules

Validation

Rules

Exception

Handling

OCR XML OmPrompt XML

Document

Creation

Document

Map

Inbound Transformation

2. Business Rules Applied

1. Inbound Data Extracted

3. Outbound Data Generated

Outbound Transformation

OmPrompt XML

Message

Creation

SFTP/AS2…

To Client

Documents / Images

Trading Partners



100% Customers

Documents / Images

50%? Customers




• Fully Automated

• Zero Touch

Electronic Data

Any EDI Format Rule Based Extraction

• Fully Automated

• Zero Touch

EDI

Full Automation

EDI

Format

Normalisation

Substitution

Rules

Business

Logic

Splitting

Consolidation

Rules

Validation

Rules

Exception

Handling

OmPrompt XML

Document

Creation

Inbound


1. Inbound EDI Message



OmPrompt XML

Message

Creation

SFTP/AS2…

To Client

Documents / Images

Trading Partners



100% Customers

Documents / Images

50%? Customers

The “Tail”




• Fully Automated

• Zero Touch

Assisted automation

• Partial Data Entry

• Full Data Entry

Electronic Data

Any EDI Format Rule Based Extraction

• Fully Automated

• Zero Touch

EDI

Full Automation

Assisted Automation

Lower Volume / Lower Quality

Inconsistent Formats

Assisted Automation

Format

Normalisation

Substitution

Rules

Business

Logic

Splitting

Consolidation

Rules

Validation

Rules

Exception

Handling

OCR XML OmPrompt XML

Document

Creation OCR

Inbound Transformation


1. Inbound Data Extracted


2. Order Entry


OmPrompt XML

Message

Creation

SFTP/AS2…

To Client

Documents / Images

Trading Partners



100% Customers

Documents / Images

50%? Customers

The “Tail”

40%? Customers

OmPrompt Now – Providing a Better Customer Experience

Cloud Infrastructure

Client Onboarding

Client Services &

Support


• Managed UK hosting centres

• Certified ISO 27001 & ISO 9001

• 24x7 system monitoring

• Disaster recovery and back-up

Recent Investments & Improvements

2015 - new secondary failover

datacentre


Client Onboarding

Client Services &

Support

2015 - Now exceeding our 99.7% uptime SLA with 100% uptime…

Client Onboarding

• Removed effort from clients’ teams

• Bringing solution architects closer to

the client

• Continuous delivery and

improvement

• Sponsorship of every project at

director level

• Focus on bringing earlier ROI

• 5-day rapid onboarding


Client Onboarding

Client Services &

Support

5-day Rapid Onboarding

Client Services & Support

• UK based team

• End to end service monitoring

• 24x7 operational support

• Email and telephone first line

support

• Customer Portal access

Recent Investments & Improvements

Improved rejection/error messaging

Monthly service review meetings

Detailed service reporting


Client Onboarding

Client Services &

Support

OmPrompt = Strategic Advantage

Any Volume

High Volume

Low Volume

EDI

Assisted Automated

Full Automation

End-to-End Order-to-Cash Solution

Agenda





Ian Golding




Cycle

Thomas Bartsch

15:00 Break



Jonathan Kittow


Survey Findings



Patrick Strauss

16:20 Break


Excellence

Chris Furlong





In-depth Insights.

Your Questions Answered

#strategicadvantage

@OmPrompt

Agenda





Ian Golding




Cycle

Thomas Bartsch

15:00 Break



Jonathan Kittow


Survey Findings



Patrick Strauss

16:20 Break


Excellence

Chris Furlong





Summary: Your Strategic

Advantage

John Wakeman

CEO, OmPrompt

#strategicadvantage

@OmPrompt

Strategic Advantage

Strategic Advantage

The whole customer

experience

Quantifying the value

Measuring customer

perception

O2C

Maturity

Technology for strategic advantage

Strategic Advantage

The whole customer

experience

Quantifying the value

Measuring customer

perception

Maturity and strategies for O2C

Strategic

Advantage

This Way

Thank you!

Find out more at www.omprompt.com

#strategicadvantage

@OmPrompt

http://www.omprompt.com/

Contact OmPrompt

+44 (0)1235 436000

[email protected]

www.omprompt.com

TWITTER: @OmPrompt

Join our Customer Automation Management Group on Linkedin

https://www.youtube.com/user/OmPrompt

mailto:[email protected]

http://www.omprompt.com/

https://www.linkedin.com/grp/home?gid=5017840

omprompt - how to build (and maintain) a strategic advantage in b2b supply chains

Software

strategic advantage

close gina balarin

o2c cycle thomas bartsch

financial opportunity

financial analysis

globe source

practice jonathan kittow

welcome building