Fotof’s Order-to-Cash: Business Process Improvement
- Fotof’s Order-to-Cash: Business Process Improvement
- Case Study
- Case: Order-to-Cash Process at Fotof
- Tasks
- Conclusions
- Executive Summary
- Waste Analysis
- Issue Register
- Proposed Changes and Rationale
- Communication
Case Study
Case: Order-to-Cash Process at Fotof
Tasks
Conclusions
Executive Summary
Fotof, a leading photography company in Northern Europe, is facing challenges in its booking-to-cash process, with declining customer satisfaction and high staff turnover rates. The company's goal is to increase revenue by 50% by the end of 2018. To achieve this, the existing process must be improved to address identified wastes and issues, and new value-added services should be considered.
This report includes a detailed BPMN process model of the current state, a waste analysis, an issue register, and a redesigned "to-be" process model. The proposed changes aim to reduce turnaround times, improve order management, streamline communication, and expand the range of services offered.
Waste Analysis
The current process contains several wastes, including:
- Time-consuming appointment management, with multiple calls and emails to find a suitable time and frequent changes or cancellations.
- High late-show and no-show rates, leading to inefficient use of resources.
- Numerous customer inquiries, requiring significant staff time.
- Delayed turnaround times for photo availability and order delivery.
- Inconsistent handling of changes and special requests, leading to customer dissatisfaction.
Issue Register
Issue Priority Number | Issue Name | Short Description | Data/Assumptions | Quantitative Impact | Qualitative Impact |
1 | Turnaround Times | Long turnaround times for photo availability and delivery | From customer complaints and staff interviews | Increased customer dissatisfaction | Negative impact on customer satisfaction and potential revenue loss |
2 | Appointment Management | Time-consuming and inefficient appointment scheduling process | From staff interviews | Increased staff workload and stress | Negative impact on staff satisfaction and increased turnover |
3 | Order Management | Inconsistent handling of changes and special requests | From customer complaints and staff interviews | Increased customer dissatisfaction | Negative impact on customer satisfaction and potential revenue loss |
4 | Communication | Inefficient communication between customers and staff | From customer complaints and staff interviews | Increased customer dissatisfaction | Negative impact on customer satisfaction and potential revenue loss |
5 | Service Expansion | Limited range of value-added services offered | From management viewpoint | Missed revenue opportunities | Negative impact on revenue growth potential |
Proposed Changes and Rationale
Change 1: Implement an online booking and order management system
- Rationale: Streamlines appointment management, reduces manual handling of changes and special requests, and improves communication.
- Issues addressed: Turnaround Times, Appointment Management, Order Management, Communication
Change 2: Redesign workflow to prioritize photo editing and reduce turnaround times
- Rationale: Increases customer satisfaction by making photos available for review and delivery faster.
- Issues addressed: Turnaround Times
Change 3: Train staff on effective communication and customer service skills
- Rationale: Improves the overall customer experience and reduces the number of complaints.
- Issues addressed: Communication
Change 4: Introduce new value-added services, such as slideshows, artistic galleries, and easy reordering options
- Rationale: Increases revenue by expanding the range of services offered and catering to a wider customer base.
- Issues addressed: Service Expansion
Change 5: Implement a system to allow other event participants to place orders
- Rationale: Increases revenue by offering services to a wider audience, especially in the case of personal events.
- Issues addressed: Service Expansion