Evergreen Case Study Help
In the case of Evergreen, the most concerning business activity is the customer service which incorporates almost all the activities from taking orders till delivering these orders to the customers.
First of all, the company should restrict the order collection to only online orders recording system which will facilitate the correct order collection and helps to minimize the mistakes in order recording because the customers will make their own profile and responsible for the information that they provide for orders.
Reduce long waiting time through efficient order receiving and helps salespersons to eliminate 1\2 to 1 day waiting time.
Make efficient and effective accounting process.
Maximize the shop floor through increased workforce and outbound logistics.
It will helps to maximize the customer value. It can be applied effectively by adopting performance metrics. These involves specifics throughput time for the delivery process. Along with this, apply an effective process velocity and increased productivity. (See appendix 3)
The performance metrics should incorporate all important considerations such as a responsible person, proper consultation, tracking, supervision and check proper accountability. Additionally, the performance metric should include appreciation grading for workers to fulfill an order. This could help to increase sales and on time delivery. Furthermore, it is recommended to adopt kaizen practices and continuous improvement process for their stock level and meeting customers’ complaint effectively. A new order placing system along with a new supply chain process has been proposed for Evergreen to cope up with the existing bottlenecks. (See appendix 2 for new process)
Question: 4
Evergreen is currently facing customer dissatisfaction along with some bottlenecks in the supply chain process such as excess time, manual order placing, mistakes in orders placed, no proper tracking of orders and no quick delivery. These all problems creates poor performance and the dissatisfied customers.
Strategic Possible Solutions
To cope up with this intense problems, Evergreen is recommended to follow following strategic solutions:
Online order placing system
Tracking system
Improved supply chain
Staff training
Proper inventory stores
Kaizen theory
Production capacity utilization
Credit worthiness
Online Order Placing System
Currently, Evergreen’s workers place orders manually via phone call and record it on sales sheet. Additionally, the process requires too lengthy procedure to incorporate order. It is recommended that Evergreen should purchase or develop an online order placing system which could facilitate proper order placement. Florists should be encouraged to develop long term existing relationships by creating an online customer profile along with providing their detailed information. Then, customers will be able to place an order easily when ever they needed without any difficulty. In the online system, the customers will require to provide the quantity needed, due date and the type of the product along with some additional specifications, if needed.
Tracking System:
It is recommended that Evergreen should purchase an order tracking system that could facilitate order accuracy and on time delivery. After placing an online order via online customer profile, customers will then be provided with a tracking ID to track their order’s performance. This system will also help to minimize the number of problems by reducing the long wait time.
Improved Supply Chain
Existing supply chain is unorganized and carries some bottlenecks which should be eliminated by introducing an effective revised supply chain process. The proposed supply chain carries only three steps for order fulfillment which includes customers, an online order placing system and shop floor. This will provide with improved process and quick delivery. (See appendix 2 for revised supply chain process)
Kaizen Theory
Kaizan theory is a concept which facilitate continuous improvement in the process along with a regular up gradation. The management should improve its process flow on regular basis and made changes accordingly whenever needed.
Staff Training
A proper workers training sessions should be conducted to increase effectiveness of process flow. Furthermore, hire specialized workers along with providing timely training sessions. The trained sales force will be helpful in developing strong relationship with its customers and generate satisfied customers.
Proper Inventory Stock
The inventory level should be maintained according to the needs. During peak days, hire more staff and manufacture number of products to satisfy the increased demand timely. On the other hand, set a side some additional stock for peak days demand to reduce excessive demand problems.
Production Capacity Utilization
During peak days, the production utilization is 80%. While on normal days, the production utilization rate is too low which should be increased by increasing number of sales. The sales representators should be encouraged to increase the number of customers by providing them proper training. If, the company is not utilizing its full capacity, its mean that its management is not focused and trained.
Credit Worthiness
The online order placing system should facilitate the proper checking of credit rating along with credit worthiness of customer. Once the customer develops its own profile, the should provide proper evidence for its credit worthiness. When customer place an order, his or her credit rating should be checked to reduce the bottlenecks arises under its forward process flow. Timely crdite checking procedure will facilitate timely payments and long term customers.
Conclusion
Decorated containers and care tags are manufactured by Evergreen products with targeting small and medium size florists and grocery stores. These containers and care tags are sold at high prices along with the 60% profit margin to provide high quality products, and the quick and on time delivery service. At Evergreen, the order could be placed in two ways. The order entry system is too long and carries too much excessive time. This creates dissatisfied customers and decrease the number of orders received. To cope up with these intense problems, Evergreen is recommended to follow some proposed strategic solutions which includes developing an online order placing system, a tracking system, Improved supply chain, proper staff training, proper inventory stores and applying Kaizen theory along with utilizing full production capacity in peak days. This will helps the organization to minimize the long waiting time along with satisfied customers.........................
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