Sorting It Out - Postnl

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Margreet Paalman
Joachim den Hertog

Class: BE2i

Sorting it out

A policy plan for the sorting center of PostNL Zwolle

Margreet PaalmanS1048330
Joachim den HertogS1049033

Class: BE2i
Education: Business Economics
School of Business and Economics
School: Hogeschool Windesheim
Lecturer: Mrs. Louter

Date of completion: 11-01-2013

Sorting it out

A policy plan for the sorting center of PostNL Zwolle

Index

Summary4

1 Preface5

2 Business description6
2.1 Mission, vision, core values and objectives 6
2.2 Structure and size6
2.3 Results8

3 Undesirable situation10
3.1 Present situation10
3.2 Causes11
3.3 Possible consequences11

4 Desired situation12
4.1 The main goal12
4.2 Objectives12

5 Preconditions and criteria14

6 Solutions15
6.1 Possible solutions15
6.2 Time investment15
6.3 Resources, advantages and disadvantages15

7 Assessment of possible solutions16
7.1 Solution requirements16
7.2 Testing against preconditions and criteria17
7.3 Advantages and disadvantages of solutions18

8 Conclusion and recommendation20

9 Guidelines on implementation21

Appendixes 22
A Structural plan for policy report22
B PC component list23

Literature list25

Summary

PostNL is a Dutch company which delivers mail and packets in the Netherlands, the United Kingdom, Germany, Italy and Belgium. The company has a distribution center in Zwolle where mail is sorted. A decline in profit is to be expected. Therefore, PostNL must look at possibilities to save money. The sorting center in Zwolle has got an undesirable situation. A lot of employees who work through an agency don’t want to work for a long time at PostNL. This is mainly caused by the bad atmosphere; the music isn’t the taste of most employees, there is no emotional binding with the employees and aren’t taken seriously. Also, the work is very boring because it’s monotone. Since roughly 12,5 % of all the mail is handled in Zwolle, worth € 472,125,000. The employees costs are estimated at € 1,860,019.20. The goal for the sorting center of PostNL Zwolle is to reduce the wage costs with at least 5 % in 2013, which is almost € 100,000. To reduce the costs, productivity can be increased and/or employees can be hired, instead of letting them work through the agency. The set preconditions and criteria are:

* A clear, positive difference must be seen in one year (2013) * The wage costs in 2013 must be 5 % lower than 2012
* Taking the costs of the solutions in account, the costs in 2013 must be at least 3 % lower than 2012 * No new personnel, other than sorting employees, can be hired The possible solutions that can be used are divided in two main solutions. The first is improving the atmosphere and consists of changing the music by installing a PC, rewarding the most productive employees with a € 10.- bonus per shift and instructing the chef to be more social with his employees. The second solution is simply hiring employees directly instead of hiring trough the agency. The first solution requires some time, mainly because of the social part. The resources that are needed are the PC and a schedule to keep count of the most productive employees. The money needed is € 40.- daily for the productivity reward. The chef should have a course about being social with his employees, causing costs for the personnel part. The second solution only needs time, since resources and personnel are already there. Extra money isn’t needed. When tested against preconditions and criteria, the first solution causes the wage costs to drop with 3,42 % and the second solution with 6,13 % making the difference 9,55 % in total. The problems with the solutions are that the first solution is less efficient and the second solution cannot be executed without executing the first one. In...
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