Automating invoicing processes at a multi-location furniture retailer

QA Review 8/3/15 LJD MSML Problem Statement Form: Graduate Capstone Course

Capstone Program: Master of Science Management and Leadership State the problem or business need: The company of interest is a reputable furniture store competing as a corporation which has been in business for nearly 3 decades and operates several locations in the local area. At present, this company completes all of its invoicing activities manually and its management has communicated their intention to automate this process using an appropriate computer-based invoicing application. Describe the client/organization by providing some background and describing the context in which the business problem or need occurs. The retail furniture sector in this region of the country is highly competitive, and most companies compete on the basis of price in terms of budget or medium-range quality furniture or by focusing on offering higher-end fine furniture. The furniture store of interest (hereinafter “XYX Furniture” or “the company”) completes an average of six sales a day across its main showroom and four retail outlets located throughout the community The company currently employees six full-time staff and intends to add two more over the next few months due to increased sales in recent years. The company’s management structure is strictly mechanistic with virtually no resources devoted to market research or trends in consumer preferences. The main showroom currently accounts for the majority of the company’s sales so the manual processing of these invoices is not overly time-consuming or complex; however, the main store is the only location that accepts credit card payments and the geographic disparate locations of the company’s other four retail outlets make this issue problematic for timely and effective account management. The company’s president declined to indicate XYZ Furniture’s annual sales, but he did confirm sustained increases in sales in recent years. The company does have some automated processes already in place, including bill payment applications, some inventory management applications and supply chain management tools for ordering from its larger vendors. Therefore, staff training needs for the envisioned automated invoicing system will be minimal. The company’s president has suggested a budget of between $1500 and $2500 for an automated invoice system that would accommodate the company’s specific needs. Describe the context in which the problem is occurring. When did the organization become aware of the problem? What actions, if any, have been taken to mitigate the problem? The sustained increases in sales combined with the opening of several new retail outlets has resulted in a number of constraints to the efficient processing of accounts receivable records. In the past, all or most of the company’s retail sales were generated by the main showroom, but this has changed in recent months as increased traffic at the company’s retail outlets has resulted in additional sales at these locations as well. The only substantive action taken to date has been the installation of a credit card reader at the main showroom; however, these services are still unavailable at the other retail outlets. Consequently, the geographic distances between the company’s commercial operations and the need to streamline its supply chain management practices has underscored the need to automate the invoicing function at the earliest opportunity, provided it satisfies the company’s requirements and meets the stated budget. Identify the person in the organization (by position, or title) that authorized you to resolve the problem: Job title: President, XYZ Furniture Three areas of leadership responsibility that might be contributing to the problem: Three main areas of leadership responsibility that are regarded as contributing to the current invoice problem include those set forth in Table 1 below. Table 1 Three areas of leadership responsibility contributing to the problem and supporting rationale Leadership area of responsibility Rationale