Business Operations and Systems - Essay Example

 The ‘Parcel Delivery Conundrum’ was an article by Andrew Bomford, published in the BBC News magazine. It focused on the problem faced by consumers regarding the delivery of parcels and letters by the courier companies. People all over the UK claimed that the courier service seemed very disappointing. As the majority of the population goes out to work, the postman either used to leave a message in the post box directing the recipient to collect the parcel from the local post office or the parcel was claimed to be delivered. (Bomford, 2012a). The article received various responses from all over the UK. People reported horrific incidents like parcels being thrown past the main gate or dumped in a bin near the recipient’s house (Bomford, 2012b). The courier service companies focused severely on the operational costs that a missed mail would incur. They hardly cared about the efficient service that they should be providing to the customers. In the UK, 12% of deliveries fail during the first visit, costing the industry an estimate of £1bn for re-delivery (Bomford, 2012a). Further, the readers were astonished when the article reported that a London courier company was happy to track down the customers with phone calls and make repeated attempts to deliver the mail, if the customer cashed in some extra money (Bomford, 2012a). Opinions came flooding in, suggesting that the courier companies should develop software which could enable them to track down the customer’s current location and deliver the mail at the right time, right place and to the right person. Blackbay, a company providing services to courier firms, has developed a Smartphone application which enables the delivery firms to track the current location of its customers (Bomford, 2012a). This would not only enhance the ability of the courier companies to make more 'first time' deliveries but also reduce the number of complaints from the consumers. Apart from focusing on the IT service providers, bankers and advertising agencies, the company should also focus on the logistics department, as logistics is considered to be an integral part of the company. As per a survey, the companies in the UK which performed an in-house logistics to reduce cost levels was in a saturation state compared to the companies which outsourced logistics services. Retail companies with large and complex networks had to depend on third party Logistics Company, which not only focused on delivering products on time but also aimed at providing good service. (Fernie, 2009, p. 55-56). Two important concepts of Soft Systems Methodology are “CATWOE” and “ROOT”. These help the companies to locate defects in their production and operational process. The definitions are explained below in the table: CATWOE Definition ROOT Definition 1. C-customers on the receiving end and their cause of worry. 1. What measure will the company take to solve the problem? 2. A- “Actors” who will carry out the task and their problem in carrying out the task. 2. How the problem will be dealt with and what measures shall be taken to eradicate the problem? 3. T-Transformation process. Conversion of inputs to outputs. Focus is laid on the process of transformation 3. What is the current solution to the problem? Is it appropriate? W-Worldview. What is the real problem? What is the bigger picture? The root definition focuses on the root cause of the problem and measurements to deal with it. O- Owner of the process of changing. Can they provide a solution to the current process? E-Environmental constraints. What are the ethical limits, the laws, financial constraints, limitations and regulations? Apart from the above Soft System Methodology concepts, there are other methodologies which can be instrumental for providing solutions to the company. Let’s take an example of a retail company like “As You See on Screen” (ASOS). ASOS is a UK based online fashion and beauty retail company .The company offers over 50,000 brands and its own label products (ASOS, 2013).The target segment of the company is generally the 18 to 34 year olds and it attracts around16.6 million unique visitors every month and is the second most visited retail website in the UK. The site introduces at least 5000 new items per week (Heinemann and Schwarzl, 2010, p. 190). The Unique Selling Proposition of ASOS is its one-to-one market selling and marketing strategies like weekly newsletters for registered users. This has made ASOS, one of the most coveted online fashion stores (Heinemann and Schwarzl, 2010, p. 190). ASOS performs one-to-one market selling, so it heavily relies on logistics company Unipart, who has maintained good track records for ASOS (BBC News, 2010). Unipart is an innovative logistics provider, utilizing lean methodology for adding value to its customers. Apart from lean methodology, the company believes in workplace-based learning centre. It believes that its world class achievement is due to the accumulated knowledge which it imparts to the employees through extensive training. It has established “Unipart Advanced Learning System” which provides extensive knowledge to the employees (Wilson, 2005, p. 95). The main focus of Unipart and ASOS would be time management. Suggestions for efficient time management would be 1) Prioritization – Products which are ordered first should be given first priority and so on, and 2) Scheduling – To plan the time and sequencing of the product delivery. The company can also rely on the Action Priority Matrix – which identifies the priority of each project and decides on the elimination of unwanted constraints which are nothing but hindrance to the process of the organization (Vargas, 2008, p. 50). Do the project right away - the projects are determined as urgent are given high priority. Important Projects but not urgent - These projects need to be given priority after the urgent projects. Fill In - To delegate and prioritize the urgent tasks on first-come first-served basis. Discard - These jobs are a waste and require unwanted time and energy. So they should be dumped immediately. Source: (University of California, 2012). The Action Priority Matrix is very simple and helpful for the company to determine important tasks and eliminating unwanted resources. ASOS can use this matrix as an important tool for enhancing time management. References ASOS, 2013. About US. [online] Available at: http://www.asos.com/infopages/pgeaboutus.aspx [Accessed 06 February 2013]. BBC News, 2010. Jobs Created As Online Store, ASOS, Moves To Barnsley. [Online] Available at: http://www.bbc.co.uk/news/10285674> [Accessed 06 February 2013]. Bomford A., 2012a. The Parcel Conundrum, [online] Available at: http://www.bbc.co.uk/news/magazine-18709348. [Accessed 06 February 2013]. Bomford A., 2012b. Readers' Parcel Delivery Nightmares, [online] Available at: http://www.bbc.co.uk/news/magazine-18811961. [Accessed 06 February 2013]. Fernie, J., 2009. Logistics and Retail Management Emerging Issues and New Challenges in the Retail Supply Chain. London: Kogan Page. Heinemann, G., and Schwarzl, C., 2010. New Online Retailing. . Berlin: Springer Verlag. University of California, 2012. Action Priority Matrix [pdf] Available at: http://deanofstudents.ucsc.edu/pdf/action-matrix-info.pdf [Accessed 06 February 2013]. Vargas, R. V., 2008. Practical Guide to Project Planning. United Kingdom: Taylor and Francis. Wilson, J., 2005. Human Resource Development: Learning and Training for Individuals and Organizations. London: Kogan Page. Read More