Competency Mobilization <BA CRM Consulting> Case Study able o! Case Study <BA CRM Consulting> Contents 1. Client Background...........................................................................................................3 1.1. Industry Landscape...................................................................................................3 2. Manageent !ro"ile.........................................................................................................# 1.1. Mission......................................................................................................................# 2. !roducts and Manu"acturing !rocess$..............................................................................# 3. Marketing process$...........................................................................................................% #. CRM process....................................................................................................................& %. !urc'asing !rocess...........................................................................................................& (. )inancial Accounting.......................................................................................................* &. Current I+ landscape........................................................................................................* &.1. Mont'ly anageent eeting$................................................................................* *. S,-+ analysis................................................................................................................. .. Conclusion........................................................................................................................ IBM Con"idential 2 o" . Case Study <BA CRM Consulting> 1. Client Background Company XYZ is one of the leading manufacturers of AAA with a turnover of over US$ 400 million. The Company manufactures high quality Auto component Company was estalished in the early eighties in !ndia to manufacture auto components to supply domestic auto manufacturers. "riven y lierali#ation and open !ndian economy$ company has grown eyond imagination to estalish itself as XYZ in the world$ supplying products to manufactures in US$ %urope and &apan. Company's core competence lies in e(cellence in manufacturing and world class quality management$ thus enaling the company to grow into a multi)product mar*et leader today$ with a strong presence in international mar*ets. Company has it's headquarter in !ndia with total employee strength of close to +000. !t has estalished mar*eting offices in US$ %urope and &apan in late ,0s$ and recently opened mar*eting offices in -ra#il$ Australia and South Africa. Company has manufacturing facilities in three locations in !ndia. !n order to meet the increasing customer requirement and to cater to international mar*ets$ company plans to set up a new green field manufacturing facilities in !ndia$ and also loo*ing out for acquisitions in international mar*ets to achieve scale$ and gloal dominance. Company is increasingly facing competitive pressure from other !ndian and Chinese competitors. So the competition has narrowed down to those players who can supply world class products at competitive rate in a .ust)in)time manufacturing demand)led environment. 1.1. Industry Landscape The gloal auto components industry is getting competitive. This has resulted in a higher level of deliverales from the auto component manufacturers. There is a continuous push to improve quality$ reduce cost and improve delivery. The auto components industry world)wide is pro.ected to grow at a ,/ CA01 till fiscal 2032$ thus ringing in increasing demand at a gloal scale$ with sustantial demand eing registered in -1!C countries. 4ast decade has seen the entry of gloal auto ma.ors in emerging mar*ets to tap the large mar*et si#e and growth opportunity. As the automoile industry has grown and matured$ the auto components industry has also grown tremendously$ and is rapidly achieving gloal competitiveness oth in terms of cost and quality. !nfact$ industry oservers thin* that while automoile mar*et will grow at a measured pace$ the auto components industry is poised for a ta*e)off in a ig way covering oth new products and after)sales mar*et world)wide. As quite a lot of world)class Auto components manufacturers have developed and staili#ed their operations in !ndia and China$ they have reali#ed the cost advantage of manufacturing components in those countries to e lower y aout 50/$ compared to western countries. They egan to e(plore the possiility of e(porting ac* these low cost$ high quality components to their gloal factories and thus reduce their overall costs. The auto ancillary industry witnessed huge capacity e(pansions and moderni#ation initiatives in the post lierali#ation period. Technological collaorations and equity partnerships with world leaders in auto components ecame a common affair. 6owever$ the tough competitive scenario will ring up a lot of consolidation in the industry and new challenges for the companies to emrace ne(t est practices to stay competitive in mar*et place. IBM Con"idential 3 o" . Case Study <BA CRM Consulting> 2. Management Proile Company has the following management structure7 C8" 9resident) :perations 9resident) 8ar*eting 9resident) ;inance$ !T and 61 08) 9lant :perations <ice 9resident) 8ar*eting <ice 9resident) =6ead of each ="omestic> =;inance?accounts> 8anufacturing ;acilities> <ice 9resident) 8ar*eting <ice 9resident) 61 =!nternational> <ice 9resident) !T ;inance$ 61 and !T <9s report to 9resident);inance$ !T and 61. <9s in charge of domestic and international mar*ets report to 9resident)8ar*eting. There are 5 general managers for plant operations heading each of the manufacturing facilities. They report to 9resident :perations. 9lant 08s are responsile for plant administration$ operations$ purchasing$ quality$ 61 operations and industrial relations. 6eadquarter purchasing and administration activities are managed y a senior manager who reports to 9resident);inance. 1.1. Mission To ecome adaptive$ customer oriented$ socially responsive gloal enterprise driven y world class quality$ technology$ people and process. Commitment to increasing the sta*eholders' value y consistent performance through focusing on economic value added initiatives. 2. Products and Manuacturing Process! The Company manufactures high quality automotive components$ metal parts$ precision gears$ radiator caps$ gear shifters. IBM Con"idential # o" . Case Study <BA CRM Consulting> Company has manufacturing facilities in three locations in !ndia. !n order to meet the increasing customer requirement and to cater to international mar*ets$ company plans to set up a new green field manufacturing facilities in !ndia$ and also loo*ing out for acquisitions in international mar*ets to achieve scale$ and gloal dominance. All its facilities run two shifts in a day. Company plans to run one of its facilities round the cloc* to support increase in demand. All the manufacturing facilities follow the world)class manufacturing facilities$ and have received !S:),000 and !S:)34000 certifications. The company has consistently received Supplier of the @ear from a ig three automoiles manufacturer for last A years. Company has adopted the philosophy of quality is a way of life$ and is a constant .ourney. The aim is not .ust to do things right$ ut find ways of doing things etter. Company has initiated various est practices initiatives li*e T98 =Total 9roductive 8aintenance>$ Bero defects and C)sigma initiatives. Company has state of the art manufacturing facilities with highly speciali#ed automated assemly machines and totally integrated facilities to handle complete manufacturing process. !t has recently acquired state of the art CDC machines to ensure fle(ile manufacturing processes and reduce change over time and retooling time. ". Marketing process! The company currently doesnt have any specific marketing plan. Currently for all newly launched product/ any product updates, sales team contact all existing customers and update them about these products. Sales team also rolls out number of events during the product launch and invites all their prestigious/ key customers to these events. Company also has a very strong team that manages the company brand and advertisement part and it is doing a great ob in establishing a high value/ high !uality brand image in market. The organi"ation has received couple of awards related to brand management for this team. 6owever$ they have oserved that their competitors are wor*ing much smartly with their customers and provide enefits to attract more orders. Currently E@B doesn't have any analytical solution availale that can support the mar*eting team to identify the mar*et for a newly launched product and to target that segment. Company has plan to uild a capaility in near future through which they will e ale to segment different set of customers ased on geoF region$ organi#ation si#e$ relationship with company etc and to approach each group with a set of product that would e applicale for the segment. Also company has plan to sell more aggressively their products during all interaction with customers through all channels G however$ they also wants to ma*e sure that this shouldn't ma*e their customer unhappy and only do so when appropriate. Service7 As a part of their service to the customers$ E@B primarily has the following set of processes7 :nce an order is received$ and request for shipment are captured$ customer can follow up with the sales personF call center to chec* the status. Also they are allowed to modify some details related to shipment =e.g$ shipping address> at a later point of time. E@B also supports it's customer through the call center for any issuesF grievances related to the delivered products and will close all such grievances as a part of their case management process. Call center supports the customers for any dispute aout the illingF payments as well as related to warranty The call center also provide support to the customer F prospective customers aout their query aout any productF and related information. They also are equipped to inform prospective customers aout the stoc* F availaility of products. IBM Con"idential % o" . Case Study <BA CRM Consulting> #$e company $as it%s &rder management application '$ic$ allows employees such as salespeople and call center agents to create and manage quotes and orders through their entire lifecycle. :rder 8anagement is tightly integrated with ac*)office systems$ allowing users to perform tas*s such as chec*ing credit and confirming availaility$ as well as monitoring the fulfillment process. :rder 8anagement allows employees to7 Create quotes and orders for new products Create quotes and orders to modify e(isting products and services 8odify in)process orders that have een sumitted for fulfillment 0enerate order information for sumission to ac* office illing and fulfillment systems #$e &rder Management Lie(cycle The order management life cycle includes tas*s that fall into several groups7 9reorder Tas*s ) !ncludes creating accounts$ contacts$ and opportunities or helping anonymous customers through the needs)analysis process. :rder %ntry Tas*s )!ncludes selecting products and services$ capturing quotes an orders$ verifying products and pricing$ chec*ing availaility to promise$ entering shipping$ ta($ and payment information$ and performing a credit chec*. :rder 8onitoring Tas*s ) !ncludes providing the customer with order status$ notifying the customer that the order has shipped$ and monitoring or modifying activities that support the order$ such as installation. )cenario or &rder Management As customers e(press interest=%mail$9hone$;a($"irect> in products $ that information is recorded into the order oo*ing application and help them identify the appropriate solution. A salesperson creates an opportunity and record the est solution to meet the customerHs needs. :nce the est solution is identified$ customer is provided a quote$ provided that details the products and their prices. A salesperson then converts an opportunity to a quote$ or create a quote manually. 9roducts and services can e customi#ed so that the customer can specify e(actly what options they are interested in and can see the associated prices. :nce a customer accepts a quote$ it can e converted to an order. Alternatively$ a salesperson may create an order directly$ without creating a quote. The salesperson can enter shipment information and chec* on the availaility of the items. !f an order contains a numer of items$ availaility can e chec*ed for each line item. The !nventory application is integrated with :rder management application. The salesperson can perform tas*s such as calculating ta( and shipping costs$ verifying payment information$ chec*ing the customerHs credit$ and authori#ing their use of a credit card. The AccountsF-illing application is integrated with :rder management application. The salesperson may perform final tas*s such as attaching electronic documents to the order$ such as a purchase order or a letter of credit$ and generating service activities related to the order such as installation. The salesperson sumits the order. !f appropriate$ the order can e routed for approval y a supervisor. An ac*nowledgement of the order can automatically e sent to the customer y email. IBM Con"idential ( o" . Case Study <BA CRM Consulting> !f customers change their minds and want to revise an order efore it has een fulfilled$ the change can e handled y modifying unsumitted orders or y creating supplemental orders that revise sumitted orders. As a customerHs needs evolve over time$ the customer may request additions and changes to the products and services they have. To ma*e these changes$ new quotes and orders can e ased on the current items in the customerHs profile. *. C+M process The company has amitious plans to emar* on integrating the !T processes with a C18 application at the heart of it's operations seamlessly integrating into the various aspects of the customer interaction =oth -2- and -2C>. The company plans to institute a roust C18 application through which it can connect to it's customers on one hand thus increasing it's already well Gestalished clientele and also e(ploring the possiility to capture new mar*ets. At the same time$ there is a necessity for the company to communicate within the different ranch offices and with a view to *eeping the price of it's components low$ it plans to source components closest to it's mar*ets meaning trying to devise a way to identify and forecast demand and then supply ased on the pro(imity of it's manufacturing ases. The other critical part of the operations which the company elieves to e strategic in its long term vision is to e ale to analy#e the customer ase and the demands and ale to develop a roust portfolio of products to service future orders y using analytics tools to predict consumer patterns. The company is loo*ing for some help in formulating it's strategy and very *een to adopt the est) in)the Greed software from leading vendors who could propose a C18 strategy and implement the same after evaluating the e(isting mar*et scene. ,. Purc$asing Process The process starts with a "emand .A requisition is generated$ which details the requirements =in some cases providing a requirements specification> which actions the procurement department. An 1;9 or 1;I is then raised =request for proposal or 1equest for quotation>. Suppliers send their quotations in response to the 1;I$ and a review is underta*en where the est offer =typically ased on price$ availaility and quality> is given the purchase order. 9urchase :rders are normally accompanied y Terms and Conditions which form the contractual agreement of the Transaction. The Supplier then delivers the productsFservice and the customer records the delivery =in some cases this goes through a 0oods !nspection 9rocess>. An invoice is sent y the supplier which is cross)chec*ed with the 9urchase :rder and "ocument which specifying that the goods received. The payment is made and transferred to 04. IBM Con"idential & o" . Case Study <BA CRM Consulting> -. .inancial Accounting The Accounting application records and processes a ccounting transactions within functional modules such as accounts payale$ accounts receivale$payroll and trial alance. !t functions as an accounting information system. !t is developed in)house y the company and integrated with the :rder management application. Core 8odules are J Accounts receivale ) where the company enters money received J Account payale ) where the company enters its ills and pays money it owes J 0eneral ledger Kthe companyHs Loo*sL J -illing )where the company produces invoices to clientsFcustomers J Stoc*F!nventory Kwhere the company *eeps control of its inventory J 9urchase order Kwhere the company orders inventory J Sales :rder Kwhere the company records customer orders for the supply of inventory /. Current I# landscape Company has deployed the following !T products and solutions7 3. :ffice communication and groupware7 4otus Dotes 2. 8icrosoft :ffice 9roducts 5. <SAT connectivity with manufacturing facilities with 6I 4. 6ome)grown software for 8anufacturing ? 9roduction automation$ quality control and maintenance management A. 6ome)grown software for 9urchasing automation C. :ff)the)shelf ;inance accounting and payroll pac*age M. :ff)the)shelf 61 management pac*age =to handle recruitment$ career management$ employee administration> +. 6ome)grown software for Sales automation =order oo*ing$ delivery$ finished stoc* management$ invoicing$ after)sales service and support> Company has +0 strong !T professionals$ with ma.ority of the resources involved in supporting and upgrading the aove mentioned home)grown software pac*ages. /.1. Mont$ly management meeting! !n the last monthly meeting with C%: and <9s$ all three general managers have raised the concern of non)integration procurement to payment end to end process chain. They have convinced the 6I management that to e successful in the mar*et place$ they have to undergo a visile re)engineering of the inound logistics chain to ta*e enefit of newer opportunities. 6aving estalished e(cellence in manufacturing and in the ac*ground of surging product demand$ company has to ta*e a fresh loo* into this inound supply chain$ and evaluateFanalyse availale integrated enterprise solutions for implementations. ;inally$ top management has reali#ed that competition for the future is not .ust on low cost manufacturing$ ut on how agile and effective is IBM Con"idential * o" . Case Study <BA CRM Consulting> the end to end supply chain. Any wea*ness in any lin* of the supply chain will erode the value that the company rings to the mar*etplace. The pain areas as outlined y the 08s are7 0. )1&# analysis )trengt$s 1eaknesses 6uge infrastructure $e(cellence in manufacturing and product quality Strong and reliale customer ase 4ow cost manufacturing 8anagement strength and strong financial 3. ;ar from ecoming %(tended %nterprise 2. 4ac* of 9rocess !ntegration 5. !slands of !T solutions 4. 6eavy management focus on manufacturing has impacted ringing in e(cellence in other areas ,. Lack o customer satisaction tracking &pportunities #$reats J 0loal demand is surging$ and opportunity lies with low cost producers in !ndia and China J 0loali#ation of economy and lierali#ation of pulic policies J Scope for Acquisitions and ta*eovers in gloal mar*et J !ntegrated !T solutions are availale in the mar*et place 3. :ther low)cost manufacturers in !ndia and China 2. Competitors emracing est usiness practices enales y state of the art enterprise solutions 5. -ac*lash on outsourcing E@B spends a lot of their annual mar*eting udget in promoting their products either through promotional discounts to their dealers F wholesalers$or through short term contracts on discount ased on volume of sales targets and many a times through advertisements in the print media F tv F hoarding. Also$ there are mailers targeting the consumers$ promoting new launches and special offers. E@B management is not clear of how much of the total mar*eting udget is flowing through which channel of distriution and hence not ale to .ustify to the oard the true impact of the same. Also$ the need to effectively measure the impact of these spends y correlating them with the actual orders F usiness impacts is still a grey area and the need to have a measure of the planned mar*eting spends vFs the actual impact of the same is overwhelming now. 2. Conclusion #n the light of this business background, your company has been awarded the contract of providing the #T and $usiness solution to enable the company to set up a platform to enable an integrated %rocurement to %ay process, and also involve in implementation of the same enterprise solution. So the mandate to your company is starting from ideas to execution and support. IBM Con"idential . o" .
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