BPM Level 1 daigram and case study

INF 30005 Business Process Management ©Swinburne University of Technology Dr. Xuemei Tian 1 Swinburne University of Technology Faculty of Business and Law INF 30005 – Business Process Management Semester 2, 2017 Case Study: All You Need Office Supplies Ltd. Order Handling Process Background All You Need is a medium -sized, office supply compan y operating in Australia. The company has grown slowly but has achieved a significant customer base through its excellent customer service practices and reputation for quality office products (stationery and office furniture). All You Need’s customers are businesses of various sizes. They do not allow account access for non -business customers. Current Order Handling Process All You Need publishes a product catalogue that is mailed to its existing account customers.

Customers can only place orders by telep hone or email, all of which are routed through the company call center. The call center is staffed by customer representatives who take calls and process emails between 8:00 am and 5:00 pm Eastern Standard Time, Monday to Friday. Customer Account Registr ation In cases where a new customer wants to make an order, a customer representative from the call center requests customer details such as, company name, ABN number, contact details and address, etc. After completing the details, the representative ente rs the information into the customer database manually, to create a customer number. Existing customers have to provide their customer number so that the representative can retrieve records containing t he customer's information. When retrieved, the custo mer provides the details of the new order. Process order All orders are forwarded to an order manager via email. If an order’s total is $500 or more, the manager must review it before forwarding to the warehouse to be filled. The order manager assesses t he credit risk of each order. If the order is deemed an acceptable risk, it is despatched to the warehouse to be filled. The manager will simultaneously send a confirmation letter to the customer. If the order is not deemed an acceptable risk, the order manager may email the customer to request more business and financial details. If the manager is still not satisfied with the customer, he/she may ask for a deposit before approving the order. If the customer cannot satisfy acceptable business and financia l details or doesn’t want to pay the deposit, the order manager can cancel the order and notify the customer. If everything is clarified to his satisfaction, the manager will send a confirmation letter to the customer. All approved orders Assignment s One and Two Case Description INF 30005 Business Process Management ©Swinburne University of Technology Dr. Xuemei Tian 2 are sent to the w arehouse to be filled by end of the day. At the same time, the manager will send a copy to the accounting department to prepare an invoice. Fulfil Order When the warehouse receives an order, they will check their inventory. If they have the stock availab le, they will arrange shipment. If they don’t have enough stock, they will firstly email the customer to notify them of the situation and provide an estimate of when the stock will be available for shipment. If re -ordering from overseas, there may be a del ay of 3 to 4 weeks, but if within Australia, it may take less than 1 week. However, it all depends on the suppliers . Customers can accept back orders, or they can cancel the items not available or replace the items with alternative brands. If customer deci des to cancel the items or order, the warehouse manager will notify the relevant order manager by email. The order manager can then modify the order and send a copy to the accounting department. Transport arrangement After completing the warehouse pick, warehouse staff book the transport for delivery to the customer by sending a booking request by email with specific details such as collection address, delivery date and address, contact person’s name and phone number at the delivery location & carton meas urements. They then await a reply confirming the booking from the Transport Company. After picking up the order with the delivery docket from the warehouse, the courier will deliver it to the customer on the due date. On completion the Transport Company wi ll inform the sales staff at All You Need that delivery has been successfully completed. Arrange Payment After all the processes have been completed, the warehouse staff will inform the accounting department to invoice the customer. Customers have a 30 -da ys to pay for the goods. If they don’t pay on time, a notification will sen d to the customer and a penalty will be applied. Customers can pay by credit card, money order or cheque. After payment is received, the case will be closed. Staff in the Accountin g department will update customer account information. Summary of current business rules:  Customers can only order by telephone or email.  Orders are accepted and managed only from 8:00 a.m. to 5:00 p.m. Eastern Time, Monday to Friday.  Customer service re presentatives handle all inbound order requests.  All orders are forwarded to the order manager for review.  Orders over $500 must be approved by the order manager.  Warehouse organize stock, back orders and arrange delivery.  Accounting department manage cust omer payments.  Invoices must be paid by customers within a month.  Late payments will occur a penalty. Business Problem All You Need has been losing customers to Office Market, its main competitor. Office Market is a national office supply chain which als o provides an online catalogue and ordering processes for its’ customers. From Office Market's Web portal, customers can view available products and submit an order 24 hours a day, 7 days a week. INF 30005 Business Process Management ©Swinburne University of Technology Dr. Xuemei Tian 3 Although it has been losing customers, and consequently, re venue, All You Need costs have remained constant relative to the order handling process. They have maintained the same number of customer representatives to avoid delays in the ordering process due to longer call - waiting times. Each customer representative traditionally receives an annual increase in their hourly wage. The company also continues to maintain separate customer and product management systems, neither of which have been upgraded for several years. Both systems are prone to problems and outages, and require considerable maintenance. Several customer surveys have indicated that All You Need’s customers are not satisfied with the ordering process. The telephone or email ordering procedure is time -consuming, and customers are often frustrated at be ing placed on hold while waiting for the next available representative. Regular customers are also concerned at the amount of time it takes to confirm their orders. The delays are most often caused by the order review process, requiring each order over $5 00 to be verified by an order manager for any credit risk before it is deemed acceptable.

Customers repeatedly cite Office Market's online order process as a quicker and more convenient method for ordering their office supplies, and their comparatively qui cker delivery times as a major advantage compared to All You Need. Summary of problems:  Call center hours of operation are not convenient.  The telephone order submission process is too long.  The order review process delays shipments.  Regular customers, in particular, resent delays due to order reviews.  The company is losing customers and revenue. Business Objectives As a result of the customer surveys, All You Need's management has decided that the order handling process has to be updated so that it can p rocess orders more efficiently . Company management wants to establish an automated process that shortens order turnaround times, especially for valued repeat customers. The planned improvements include a new Web -based ordering system, which is a customer' s access point to an almost totally automated ordering application. Simply put, it is an order handling application available 24 hours a day over the Internet. The high -level business objectives of All You Need are to increase revenue commensurate with a reduction in costs. Specifically, management wants to achieve the following objectives:  Reduce the average time from when orders are received to the time they are shipped to a maximum of 3 days  Achieve an order approval rate of 90% or better