This has been seen throughout the e-banking for example, where quality process mapping is often used for streamlining the customer service and support processes to reduce costs and encourage customer involvement (Akamavi, 2005). This analysis illustrates why it is critical for distribution channels and supply chains to have a real-time integration to respond quickly to customer needs. This Volvo analysis also illustrates how critical it is for companies to pursue a continual commitment to BPM and BPR techniques so they can stay in step with customers' changing demands. Volvo's focus on safety and stability of product design is also reflected in the analysis the researchers completed, showing how they took these core product attributes and made them part of the supply chain -- distribution channel integration.
The one finding that resonates through the many studies evaluated for this literature review is that using BPR it's possible to redesign distribution channels, bringing greater automation and cost reduction to them while at the same time making the more centered on customers' needs. This transformation of distribution channels towards greater cost reduction and higher levels of customer adoption begins when antiquated systems and processes are removed so customers' needs can be responded to more efficiently (Wehmeyer, Kipp, Riemer, 2009). It is possible to cost-reduce channel operations while increasing customer satisfaction using BPR techniques. These series of frameworks and tools provide companies with the ability to stay in step with customer needs.
Raphael K. Akamavi. (2005). Re-engineering service quality process mapping: e-banking process. The International Journal of Bank Marketing, 23(1), 28-53.
The intent of this research is to illustrate how BPM and BPR processes can lead to greater levels of customer responsiveness and support while also generating significant cost reductions. Quality process mapping is used for completing an analysis of the most critical customer-facing aspects of a bank's operations. The results show that reducing the costly aspects of customer service including manually-based customer service strategies can actually increase customer satisfaction and usage of automated channels. The conclusion of the analysis shows that BPM and BPR methods are critical for cost reduction while staying in step with customer needs.
Susanne Hertz, Johny K. Johansson, & Flip de Jager. (2001). Customer-oriented cost cutting: Process management at Volvo. Supply Chain Management, 6(3/4), 128-142.
The lessons learned from cost cutting within the supply chains and distribution channels of Volvo equally apply to many other ...
Wang, W., Chan, H., & Pauleen, D.. (2010). Aligning business process reengineering in implementing global supply chain systems by the SCOR model. International Journal of Production Research, 48(19), 5647.
The Supply Chain Operations Reference (SCOR) model is a framework used for troubleshooting and optimizing the performance of supply chains globally. It has been widely accepted across a multitude of industries as a critical concept for bringing process reengineering into the strategies of companies with suppliers located globally. The researchers show how critical it is for BPR-based approaches to channel management and supply chain integration lead to greater customer responsiveness and higher customer satisfactions cores over time. The model and research provided also illustrate how critical it is to use BPR as a mean to tie customer-facing strategies back to supply chains and distribution channels as well.
Kai Wehmeyer, Alexander Kipp, & Kai Riemer. (2009). Managing the process of channel alignment: Model-driven strategy development in a multinational corporation. Business Process Management Journal, 15(1), 48-73.
For many multinational corporations (MNC) the need for keeping the many channels they have coordinated and synchronized in terms of product strategies, pricing, service programs and licensing all centers on how effective their business processes are. The use of BPM and BPR techniques to ensure channels globally stay stable enough to sell through while also finding opportunities for continual performance gains is critical for profitability to be attained. The researchers show how BPR techniques are successfully used for initiating and maintaining channel development and improvement programs to keep them centered on the customer first.
This analysis illustrates why it is critical for distribution channels and supply chains to have a real-time integration to respond quickly to customer needs. This Volvo analysis also illustrates how critical it is for companies to pursue a continual commitment to BPM and BPR techniques so they can stay in step with customers' changing demands. Volvo's focus on safety and stability of product design is also reflected in the analysis the researchers completed, showing how they took these core product attributes and made them part of the supply chain -- distribution channel integration.
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