Strategy of two banking giants

Topics: Customer service, Enterprise resource planning, Customer Pages: 6 (1574 words) Published: December 14, 2013

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For this week’s case we take a look at the difficulties the company Desko is facing with its order process. Desko is an American company which produces office furniture. Desko does not only produce its products but also delivers them to their American and Canadian customers. After having received cancellations from a major customer Desko decided to further analyze its order process in order to improve this. We will draw a map of its order process and create a list of problems which are tied to it. Above that we will complete the map of the credit verification sub-process and come up with ideas to improve this.

Question 1:

If you were Mr. Moore, and based on the information provided in the case, how would you draw (map) Desko’s order process?

In order to draw a process map of Desko’s order process which will not be 5 pages long, we only use the level 1 processes. A level 1 map shows the processes at its highest level. It is typically five to seven steps long and it is very useful to get an understanding of the big picture. The level 1 map just shows the basic steps required to convert an input into an output. So the level 1 map is a short summary of the entire process.

Order process map of Desko

As you can see, the first thing that happens at Desko’s order process is the receiving of customer orders. They receive orders from customers through mails, faxes, e-mails or electronic data interchange. The orders are printed and placed in the pigeonhole of the dedicated account manager. Then, the account manager creates the order, which is the second process. Once the order is created, the account manager sends the order to the credit department. The credit department evaluates the customer’s creditworthiness. Once the customer’s creditworthiness is approved, the order is transferred to the production department. At the production department, all orders are produced and completed. Then they are send to the distribution planners, who sort the orders according to customers’ geographic location and assign them for distribution. Subsequently, the products are shipped to the customer. When the customer received his order, he has to finish the payment. This is the last step of the order process.

Question 2.
Complete the mapping of the credit verification sub-process.

When an order comes in the ERP automatically checks blocks the orders that don’t meet the requirements. Every blocked order is checked by the clerk. Even though the clerk is able to release the blocked order if the customer credit is sufficient, it has to pass all questionable order to McMaster every day. McMaster goes through the list and eventually decides whether these are released or blocked. She does this by asking the clerk or checking the customer’s profile information. So the final decision is basically with McMaster self. All released order go to the plant supervisor which sends it to the MTO or MTS, according to what they require. All blocked orders go to the collection clerk.

Debt Collection

The clerk makes a ‘list of past dues’, stating the orders to be collected. He phones the relevant customers. They get a notice to pay within 5 days. The customers that aren’t able to pay or don’t want to pay can sometimes get an additional time to pay, but the clerk doesn’t agree on it, the clerk can send the collection agency. The order also can be cancelled, this can happen for instance because of a wrongly processed order or when someone wanted to return a product

Question 3 and 4

3. Create a list of the problems tied to the order process raised by Desko’s managers. Are there any others that Mr. Moore should identify? 4. If you were Mr. Moore, what recommendations would you make to improve your sub-process? If needed, feel free to draw a new sub-process to show your recommendations.

Identified problems, sorted by their chronological order in the process:

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