This paper examines the functional systems employed by Lynx Corporation, focusing on how they support quoting, pricing, order capture, order management, supply chain management, and fulfillment. Drawing on comparisons to Dell Computer Corporation's build-to-order model, the paper identifies five reasons the Lynx functional system has been successful β including error minimization, order-status transparency, and supplier integration β and five significant disadvantages, such as limited analytics, lack of systems integration, and a sequential production approach that constrains agility. The analysis highlights the growing importance of mass customization and lean manufacturing principles for future-proofing such systems.
Functional systems that streamline the transaction process between customers and a company deliver more than just products β they deliver experiences. The functional system defined in the Lynx Corporation case study fulfills the fundamental roles of quoting, pricing, order capture, order management, supply chain management, and fulfillment. The core processes of each of these systems are illustrated throughout Lynx's operations.
The success of Dell Computer Corporation can be attributed to this same type of functional system, where orders for build-to-order laptops, PCs, and servers are captured accurately from customers and taken through a production process while suppliers are alerted to specific order needs (Gunasekaran & Ngai, 2009). To put this into the context of the Lynx case, if Lynx were taking orders for customized products, it would need an expanded functional system to work with suppliers in real time (Salvador, de Holan, & Piller, 2009).
Mass customization β the ability to build products to specific customer needs and requirements β forces a level of complexity into functional systems that requires a company to align even more closely to customer requirements at the manufacturing level. Including the example of a functional system capable of mass customization underscores the need for agility and flexibility in both the design and operation of such systems (Kraemer, Dedrick, & Yamashiro, 2000).
There are many reasons why the Lynx functional system has been successful. First, the system has been designed to minimize order capture and fulfillment errors. The fewer errors in any ordering system, the greater the level of customer satisfaction (Injazz & Popovich, 2003).
Second, the Lynx functional system is successful because it communicates the status of the order at each step of the process, ensuring that customer expectations are met. Best practices in fulfillment systems focus on how to create a highly interactive and effective customer experience.
Third, the Lynx functional system is designed to incorporate supplier inputs and product status. In order for a build-to-stock manufacturing system to work correctly, suppliers must be included in each step of the planning and production workflow (Kraemer, Dedrick, & Yamashiro, 2000).
Fourth, there must be a clear line of sight to the customer at all times throughout the production process. This is achieved by keeping the focus on the order and its fulfillment, regardless of the product or process complexity associated with it (Kraemer, Dedrick, & Yamashiro, 2000).
Fifth, the system provides the ability to quickly launch new products and scale out to support mature products with line extensions. The existing functional system manages build-to-stock products effectively and could potentially be expanded to support more complex, customer-centric configurations at higher gross margins as well (Salvador, de Holan, & Piller, 2009).
"Five weaknesses including poor analytics and serial processing"
"Cited academic and industry sources"
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