Business Processes Case Study Solution
SAS in Chemical Industry
To days, chemical market is marked by uncertainty and volatility. The prices of raw material added with a demand shift towards developing countries contributed towards challenges and opportunities for the chemical industry. The best operating chemical companies possibly fulfilled the need of their global customers that too across various different distribution channels. All of this has been done with the help of SAP solutions to optimize the supply network visibility, customers’ responsiveness and product integrity. The chemical companies have built a strong bond between the brand and the customers. To have greater success at this, the companies are using advanced CRM software. (sap, n.d.)
SAP C/4HANA speeds up the analysis of large volume of data so that response time can be within minutes as compared to days. Chemical companies can optimize network operations after completing the order fulfilment faster and cheaper. Every stakeholder, from customer to order takers can have the latest information about the product. The customer service representative will know that if the product is available or not.This could be a possibility with the help of SAP data cloud providing the customers with a common portal where they can log in and decide about their product. (SAP, n.d.) Newly formed subsidiaries can be ramped up with much more effectiveness and cost efficiency with the help of customized solutions only available at SAP C/4HANA. (Peterson, 2006)
Situational Analysis
The system counts the batches of chemical that is yet to be checked by quality control as part of inventory. Now, whenever the customer will put an order for the any specific product the customer service representative will find it in the warehouse and will mark the unchecked product as an available product. The mishap was only caused by the misrepresentation of unchecked batches of chemical as an inventory. The materials that are yet to be checked for quality control can have quality issues, but if the product would be delivered to the customer, there are high chances that the customers might complaint about the lack of quality.
Some customers are tax exempted but as there is no way to detect them, company would charge the same price from them as it would do from others. Again, seeing the high prices they would immediately get to know that the company hasn’t deducted the sales tax. As a result the customers would put loads of complaints on the customer service representative department which would be difficult to handle, adding up to the customer dissatisfaction.
When the system assigns different dates to the back orders, it will not be delivered at the desired date. If the customers won’t get the product on the desired date, they would cancel the order causing the company to face losses. Instead the CSR should immediately inform the customer about the non-availability of the product.
Recommendation
The chemical manufacturing firm takes orders via phone call and then a customer service representative marks down the order details. The products are delivered according to the desired date. If the desired date is between 8-10 days, the product goes into the back order. After complete number coding the order gets delivered to the customer and payment is received.
The company is need to implement the ERP solutions where they can effectively manage the order process Implementation of SAP Hana is cloud system that allows the chemical industry to save large chunks of data. The system can develop a portal where different customers can get logged-in and search through their desired product. If they would be available it would reach them. With the help of cloud system, the company can manage the large network of deliveries and order process with much more command than they have done before the introduction of cloud system..........
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