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Business Processes Part 3 – Actions Post Implementation

 

Once the business case has been made for the introduction of processes and relevant systems have been identified for automation, the final stage is to implement the processes themselves. Whether the processes are for a small business, or a multinational corporation, the post implementation guidelines remain roughly the same:

Business Processes

  • Let the process grow and adapt. Process outlines which remain too rigid cannot scale as business needs change. By all means formalise the process, but allow the opportunity for future organic change and enhancements.
  • Involve others in process creation and implementation creating a shared ownership and common vision for improvement. Doing this will also overcome many of the political barriers which could otherwise prevent process realisation.
  • Maintain a culture of continual improvement. There is always room for the creation of new processes or the refinement of existing ones. Incremental changes will keep processes relevant to business needs and prevent them from becoming a hindrance in future.

Any process, internal or external, can help a business increase its levels of efficiency, but attempting a one-time, big-bang implementation is unlikely to have the permanent benefits desired. Processes need to be frequently revisited to allow for the identification of smaller improvements which will keep the process relevant. Changes in business model, customer demands or supplier will all necessitate changes to business processes – inflexible and infrequent analysis of processes will preclude this.

The responsibility for implementation of processes generally lies with management, but ultimately, all staff should be encouraged to participate in a continual process improvement.

Processes can exist as part of a supply chain management system, or as an internal operating procedure.  The scope is virtually limitless. Clearly, where computerised automation is required, a suitable platform will need to be sourced which provides the necessary framework in addition to flexibility for future refinements. Why not give Celtrino a call to discuss the Smart Admin platform and how it could help with your business process implementation projects?

 


Posted on April 5, 2012 in BPO, Business Process Automation, Business Process Outsourcing, Supply Chain, Supply Chain Management by
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Business Processes Part 2 – What can be made into a process?

 

We saw in the first instalment of this three part overview of business processes that implementation of processes carries a number of benefits based around creating efficiencies through de-duplication of effort. Having established the ‘why’, we can now shift the focus to the ‘what’.

Business Processes Typically, anything that is done more than once in any workflow becomes a candidate for conversion into a process. Look carefully at each sector of your business and identify where particular actions are repeated, taking in the smaller details as well as the larger picture; when designing processes there is nothing wrong with starting small. From the way in which a component is fabricated, down to the transfer of incoming mail onto a computerised accounts system, each department of any business has areas where efficiencies could be created by automating repetitive tasks.

Traditionally, processes are broken into two categories, Top/Down processes that address high level tasks, and Bottom/Up that automate lower level issues. Top/Down processes are created to be more general, providing a flexible guideline for completing a larger task, essentially directing the way in which a task is to be completed without specifying the exact steps to be taken. Acting almost like goals, Top/Down processes help define the ‘big picture’ and the steps required to make the final goal.

A Bottom/Up process however is far more prescriptive, acting like a recipe for the specific steps required to complete a smaller task. Typically, Bottom/Up processes, by their very design, are less flexible than their Top/Down counterparts, although it is possible to create some room for minor adjustments. Bottom/Up processes define the smaller steps required to maintain the Top/Down overview and goals.

Once potential processes have been identified, they should be implemented as soon as possible to reap the benefits immediately.

In the final part of this series we will examine the nature of ongoing process improvement.


Posted on March 23, 2012 in BPO, Business Process Automation, Business Process Outsourcing, Supply Chain Management by
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Business Processes Part 1 – What Are Processes and Why Should I Care?

 

Business Processes For any business looking to save cash, the obvious answer to look for potential efficiencies within their workflow. These efficiencies can be found in several places, but efforts to save time are often the most effective over the long term allowing for better utilisation of resources.

Enter the ‘process’ which effectively create a template for business operations which can then be repeated over and over again, de-duplicating effort and reducing the need for intervention. Over time, processes become incredibly important because:

  1. Processes save time. Identifying areas of commonality allow for repetitive systems to be created which can then be reused at each appropriate point, saving time and resources.
  2. Processes increase accuracy. Breaking the workflow into smaller segments allows for continual improvement of each sub-section, leading to greater savings in the long run.
  3. Processes allow transference of responsibility. By templating and documenting how a particular process works, the tasks can be passed on to other business units or contractors, reducing administrative burden and costs.
  4. Processes can be scaled to fit requirements. Once defined, a reusable system can automated and implemented quickly, allowing additional time for refinement for maximum efficiency.

These four positive benefits of processes, make it easy to see just how important and valuable they can be to a business. The beauty of processes is that they can be applied to virtually any aspect of a business, be it internal workflows or as a wider part of their supply chain management strategy.

Best of all, the reduction of duplicated effort by implementing a process creates the most valuable resource of all – time. And as the old saying goes, ‘time is money’.

Don’t forget to check back for part 2 in this series – ‘What can be made into a process?’


Posted on March 21, 2012 in BPO, Business Process Automation, Supply Chain Management by
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Key People in the Supply Chain

 

The strength of any supply chain is the people involved. There are people on the assembly making goods, other people deliver those goods to customers, and yet more people complete the required administration at each part of the process. By their very presence it is obvious that everyone in the supply chain is vital. However as with any chain, the supply chain is only as strong as weakest link. In the supply chain the weakest link is almost invariably the people.

Often, breaks in the supply chain are accidental or caused by a lack of personal ownership, as with the ‘Dockets in Pockets’ syndrome. Employees regard their responsibilities in isolation, failing to recognise that their casual negligence can have much wider implications for the business as a whole.Chain

Other times supply chains grind to a halt because a key staff member is away on annual leave and the employees operating in their absence lack the required skills or training to complete the job accurately. Tasks are then either left undone or done incorrectly, increasing the time and effort required to rectify the situation. Delays in the supply chain cause delays in payment, reducing cash flow and negatively affecting future transactions.

Occasionally issues can be caused by a disgruntled employee using their knowledge to maliciously damage the chain and their employer’s business. Feeding deliberate misinformation, or obstructing certain key transactions and interactions can have a major impact on a company and the other businesses in their supply chain.

So although everyone is key to the supply chain, they also have the potential to introduce significant problems into the process too. The solution is to automate as many of these links as possible, reducing the chances of introducing operator error into the chain and keeping each transaction moving as smoothly as possible. Using the principles of Business Process Outsourcing and Supply Chain Management, many of these potential people-related problems can be avoided, increasing efficiencies, reducing costs and allowing employees to focus on doing their jobs, rather than on administration.

And although costs savings can be made within a single business, the benefits can be shared up and down the supply chain by implementing a suitable hosted system which can be accessed by them all. Celtrino’s Smart Admin platform provides an interface for businesses at every point in the supply chain through which they can automate many of their transactions.

People will always be key to the supply chain, but there is no harm in investing to reduce manual administration and human error.

 


Posted on November 23, 2011 in BPO, Business Process Outsourcing, Cash Flow Management, Smart Admin, Supply Chain, Supply Chain Management by
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Supply Chain Integration Part 4 – Best Practice

 

Best Practice written on a white boardThe recognition that supply chain integration with your suppliers and partners is of paramount importance is the first step in a sometimes challenging and complex process. Each member of a supply chain has their own way of doing things, using a variety of different systems which at first glance are probably not fully interoperable.

Despite being a “standard” Electronic Data Interchange, or EDI as it is known for short, there are many minute variations and tweaks required in order for one computer system to “talk” to another. As a result, reconfiguration will have to take place at each supplier to allow for smooth communications. EDI setup and maintenance is an expert job and being time intensive, is also costly. As a result the use of an outsourced service which does the required EDI translations automatically is preferable.

The use of an externally hosted Electronic Invoice Presentment and Payment (EIPP) system allows every member of the supply chain to integrate their payment systems for maximum compatibility, whilst retaining complete autonomy over their own data and in house processes. During the supply chain integration process, companies can choose to enable as much or as little interchange as they desire. Obviously the more interchange permitted, the greater the on-going cost savings through a reduction in labour costs that would be accrued through manual processing of the same actions.

Clearly the complexities of such an integration is outside the experience (or interest) of most businesses and so they will need to secure the services of a specialist consultancy. Here are three suggestions to help when choosing:

  1. A proven track record in successful completion of supply chain integration. Any company you consider should have verifiable testimonials from previous customers and reference sites which can be visited for first-hand verification.
  2. Experience in trading community onboarding. Integration projects deal not only with system interoperability, but also the political issues raised by bringing together businesses with differing values and ethics.
  3. The ability to make integration as simple as possible with the minimum of disruption for any member of the supply chain.

In the light of these suggestions, expertise in supply chain integration is just one facet of the decision process. The technology and methodology used is just as important with on and off site implementations of supply chain integration. Clearly Business Process Outsourcing (BPO) options which see the EDI services hosted externally are preferable in terms of scalability, speed of deployment and minimisation of disruption – all data interchange is performed externally with minimal local reconfiguration required.

 

Supply Chain Integration Part 1

Supply Chain Integration Part 2

Supply Chain Integration Part 3

Supply Chain Integration Part 5


Posted on October 21, 2011 in BPO, Business Process Outsourcing, EDI, Electronic Invoice Presentment & Payment, Outsourced EDI, Supply Chain Integration, Supply Chain Performance by
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Gartner Report Predicts Continued Growth In Business Process Outsourcing

 

Technology research giant Gartner has released a series of estimates predicting the worldwide growth rates of Business Process Outsourcing (BPO). According to their report “Forecast Analysis: Business Process Outsourcing, 2010-2015, 2Q11 Update”, Gartner now calculate the BPO market will grow by 6.3% worldwide during 2011, slowing to 5% in 2012.Business Process Outsourcing

Cathy Tornbohm, research vice president at Gartner commented on the report’s findings saying, “Emerging markets are faring far better and, generally, multinational companies continue to look to BPO as a means both to reduce costs and to buoy their business operations during the protracted return to a growth environment. We also see an increase in transaction volume, especially in payroll, recruiting, accounts payable, and customer data analytics and knowledge process outsourcing (KPO) activities.”

Tornbohm was speaking in reaction to a weaker growth prediction for the North American region which is traditionally the world’s largest. Gartner put North American growth at just 3.8% which has had a negative effect on the total worldwide growth estimate.

The Western Europe market is expected to see continued demand from businesses for outsourced services in the CRM and finance and accounting domains. Gartner predict an annual growth rate of 8.9%, well above that of North America, but also lower than could be expected due to various cultural barriers slowing uptake.

The continued growth of the Asia/Pacific market however continues to outstrip expectations with BPO growth estimated at 17.9% in 2011 alone. Gartner have noted that almost every process which can be outsourced will grow in demand throughout the region until at least 2015, with a heavy demand for financial and accounting services and billing processes.

Latin America Business Process Outsourcing is also expected to grow at a healthy 14.7 percent as local subsidiaries of global corporations begin rollouts of integrated systems, causing a knock-on uptake by domestic businesses. Local labour rates remain relatively low in Latin America slowing uptake of BPO, although major investment by service providers looks set to change this situation.

Overall, Gartner suggest that the future growth of BPO looks relatively healthy in the coming years.


Posted on October 6, 2011 in BPO, Business Process Outsourcing, Gartner, KPO by
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