BA CRM Consulting Case Study

Global Delivery
CRM Service Line
Competency Mobilization
<BA CRM Consulting>
Case Study
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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$................................................................................*
*. S,-+ analysis.................................................................................................................
.. Conclusion........................................................................................................................
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1. Client Background
Company XYZ is one of the leading manufacturers of AAA with a turnover of over US$ 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.
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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.
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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 doesn’t 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.
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#$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.
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!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.
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-. .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
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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.
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