ba crm consulting case study

8/12/2019 BA CRM Consulting Case Study

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Case Study

Contents

1. Client Background...........................................................................................................31.1. 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.......................................................................................................................

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Case Study

1. Client Background

Company XYZis one of the leading manufacturers of AAA with a turnover of over US$ 400million. The Company manufactures high quality Auto component

Company was estalished in the early eighties in !ndia to manufacture auto components tosupply domestic auto manufacturers. "riven y lierali#ation and open !ndian economy companyhas grown eyond imagination to estalish itself as XYZin the world supplying products tomanufactures in US %urope and &apan. Company's core competence lies in e(cellence inmanufacturing and world class quality management thus enaling the company to grow into amulti)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 hasestalished mar*eting offices in US %urope and &apan in late ,0s and recently openedmar*eting offices in -ra#il Australia and South Africa. Company has manufacturing facilities inthree locations in !ndia. !n order to meet the increasing customer requirement and to cater tointernational 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 gloaldominance.

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 atcompetitive rate in a ust)in)time manufacturing demand)led environment.

1.1. Industry LandscapeThe gloal auto componentsindustry is getting competitive. This has resulted in a higher level ofdeliverales from the auto component manufacturers. There is a continuous push to improvequality reduce cost and improve delivery. The auto components industry world)wide is proected

to grow at a ,/ CA1 till fiscal 2032 thus ringing in increasing demand at a gloal scale withsustantial demand eing registered in -1!C countries. ast decade has seen the entry of gloalauto maors in emerging mar*ets to tap the large mar*et si#e and growth opportunity. As theautomoile industry has grown and matured the auto components industry has also growntremendously 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 theauto components industry is poised for a ta*e)off in a ig way covering oth new products andafter)sales mar*et world)wide.

As quite a lot of world)classAuto components manufacturers have developed and staili#ed theiroperations in !ndia and China they have reali#ed the cost advantage of manufacturingcomponents in those countries to e lower y aout 50/ compared to western countries. Theyegan to e(plore the possiility of e(porting ac* these low cost high quality components to theirgloal factories and thus reduce their overall costs.

The auto ancillary industry witnessed huge capacity e(pansions and moderni#ation initiatives inthe post lierali#ation period. Technological collaorations and equity partnerships with worldleaders in auto components ecame a common affair. 6owever the tough competitive scenariowill ring up a lot of consolidation in the industry and new challenges for the companies toemrace ne(t est practices to stay competitive in mar*et place.

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Case Study

2. Management Proile

Company has the following management structure7

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9resident) :perations 9resident) 8ar*eting 9resident) ;inance !Tand 61

8) 9lant :perations


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Case Study

Company has manufacturing facilities in three locations in !ndia. !n order to meet the increasingcustomer requirement and to cater to international mar*ets company plans to set up a newgreen field manufacturing facilities in !ndia and also loo*ing out for acquisitions ininternational mar*ets to achieve scale and gloal dominance. All its facilities run two shifts in aday. 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 years. Company has adopted thephilosophy of quality is a way of life and is a constant ourney. The aim is not ust to do thingsright ut find ways of doing things etter. Company has initiated various est practices initiativesli*e T98 =Total 9roductive 8aintenance> Bero defects and )sigma initiatives.

Company has state of the art manufacturing facilities with highly speciali#ed automated assemlymachines and totally integrated facilities to handle complete manufacturing process. !t hasrecently acquired state of the art CDC machines to ensure fle(ile manufacturing processes andreduce change over time and retooling time.

". Marketing process!The company currently doesnt have any specific marketing plan. Currently for all newlylaunched product/ any product updates, sales team contact all existing customers andupdate 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. Companyalso has a very strong team that manages the company brand and advertisement part andit is doing a great ob in establishing a high value/ high !uality brand image in market. Theorgani"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 theircustomers 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 launchedproduct and to target that segment. Company has plan to uild a capaility in near future throughwhich they will e ale to segment different set of customers ased on geoF region organi#ationsi#e relationship with company etc and to approach each group with a set of product that woulde applicale for the segment.

Also company has plan to sell more aggressively their products during all interaction withcustomers through all channels G however they also wants to ma*e sure that this shouldn't ma*etheir customer unhappy and only do so when appropriate.

Service7As 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 upwith 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 casemanagement process.

Call center supports the customers for any dispute aout the illingF payments as well asrelated to warranty

The call center also provide support to the customer F prospective customers aout theirquery aout any productF and related information. They also are equipped to informprospective customers aout the stoc* F availaility of products.

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#$e company $as it%s &rder management application '$ic$ allows employees such assalespeople and call center agents to create and manage quotes and orders through their entirelifecycle. :rder 8anagement is tightly integrated with ac*)office systems allowing users toperform tas*s such as chec*ing credit and confirming availaility as well as monitoring thefulfillment 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

enerate 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 helpinganonymous 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=%mail9hone;a("irect> in products that information isrecorded into the order oo*ing application and help them identify the appropriatesolution. A salesperson creates an opportunity and record the est solution to meet thecustomerHs needs.

:nce the est solution is identified customer is provided a quote provided that details theproducts and their prices. A salesperson then converts an opportunity to a quote orcreate a quote manually. 9roducts and services can e customi#ed so that the customercan 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 asalesperson may create an order directly without creating a quote.

The salesperson can enter shipment information and chec* on the availaility of the items. !fan 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 verifyingpayment information chec*ing the customerHs credit and authori#ing their use of a creditcard. The AccountsF-illing application is integrated with :rder management application.

The salesperson may perform final tas*s such as attaching electronic documents to theorder such as a purchase order or a letter of credit and generating service activitiesrelated 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.

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!f customers change their minds and want to revise an order efore it has een fulfilled thechange can e handled y modifying unsumitted orders or y creating supplementalorders that revise sumitted orders.

As a customerHs needs evolve over time the customer may request additions and changes tothe products and services they have. To ma*e these changes new quotes and orderscan e ased on the current items in the customerHs profile.

*. C+M processThe company has amitious plans to emar* on integrating the !T processes with a C18application at the heart of it's operations seamlessly integrating into the various aspects of thecustomer interaction =oth -2- and -2C>.

The company plans to institute a roust C18 application through which it can connect to it'scustomers on one hand thus increasing it's already well Gestalished clientele and also e(ploringthe possiility to capture new mar*ets.

At the same time there is a necessity for the company to communicate within the different ranchoffices and with a view to *eeping the price of it's components low it plans to source componentsclosest to it's mar*ets meaning trying to devise a way to identify and forecast demand and thensupply 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 longterm vision is to e ale to analy#e the customer ase and the demands and ale to develop aroust portfolio of products to service future orders y using analytics tools to predict consumerpatterns.

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 implementthe same after evaluating the e(isting mar*et scene.

,. Purc$asing ProcessThe process starts with a "emand .A requisition is generated which details the requirements =insome 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 sendtheir 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 contractualagreement of the Transaction.The Supplier then delivers the productsFservice and the customer records the delivery =in somecases this goes through a oods !nspection 9rocess>.

An invoice is sent y the supplier which is cross)chec*ed with the 9urchase :rder and "ocumentwhich specifying that the goods received. The payment is made and transferred to .

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Case Study

-. inancial AccountingThe Accounting application records and processes accounting transactions within functionalmodules such as accounts payale accounts receivalepayroll and trial alance. !t functions asan accounting information system. !t is developed in)house y the company and integrated withthe :rder management application.

Core 8odules areJ Accounts receivale ) where the company enters money receivedJ Account payale ) where the company enters its ills and pays money it owesJ eneral ledger Kthe companyHs Loo*sLJ -illing )where the company produces invoices to clientsFcustomersJ Stoc*F!nventory Kwhere the company *eeps control of its inventoryJ 9urchase order Kwhere the company orders inventoryJ 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 otus Dotes

2. 8icrosoft :ffice 9roducts

5.

+. 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 maority of the resources involved in supportingand upgrading the aove mentioned home)grown software pac*ages.

/.1. Mont$ly management meeting!

!n the last monthly meeting with C%: and


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Case Study

the end to end supply chain. Any wea*ness in any lin* of the supply chain will erode the valuethat the company rings to the mar*etplace. The pain areas as outlined y the 8s are7

0. ) analysis

)trengt$s eaknesses 6uge infrastructure e(cellence in

manufacturing and product quality

Strong and reliale customer ase

ow cost manufacturing

8anagement strength and strong financial

3. ;ar from ecoming %(tended %nterprise

2. ac* of 9rocess !ntegration

5. !slands of !T solutions

4. 6eavy management focus on manufacturinghas impacted ringing in e(cellence in otherareas

,. Lack o customer satisaction tracking

&pportunities #$reats

J loal demand is surging and opportunity lieswith low cost producers in !ndia and China

J loali#ation of economy and lierali#ation ofpulic policies

J Scope for Acquisitions and ta*eovers in gloalmar*et

J !ntegrated !T solutions are availale in the mar*etplace

3. :ther low)cost manufacturers in !ndia and China

2. Competitors emracing est usiness practicesenales 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 throughpromotional discounts to their dealers F wholesalersor through short term contracts on discountased on volume of sales targets and many a times through advertisements in the print media F tvF hoarding. Also there are mailers targeting the consumers promoting new launches and specialoffers.

E@B management is not clear of how much of the total mar*eting udget is flowing through whichchannel 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 theactual orders F usiness impacts is still a grey area and the need to have a measure of theplanned mar*eting spends vFs the actual impact of the same is overwhelming now.

. 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 toenable an integrated %rocurement to %ay process, and also involve in implementation ofthe same enterprise solution. So the mandate to your company is starting from ideas toexecution and support.

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ba crm consulting case study

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