INCREASING REVENUE GENERATION THROUGH BUSINESS PROCESS REENGINEERING

“Process efficiency, process effectiveness, removal of duplication and speed of decision making”


Achieving Revenue Generation through Business Process Reengineering


CLIENT CHALLENGE

Our client wanted to improve its Revenue Turn On, that is – reduce the number of days between making a sale and receiving payment from the customer.

APPROACH

An end-to-end process map had to be developed across specific ‘touch point’ departments and address (a) people, (b) process, (c) technology and (d) inter-department communication.

BENEFITS

Our team reduced the cycle days by 71% reaching revenue turn on savings of $5.4 million and productivity improvement of $2.9 million.

INSIGHT

Competitive advantage is realised by managing your internal customer-oriented processes (i.e. Operations & Logistics, Administrative Support, Customer Order Acceptance and Fulfillment)… not linear function (i.e. Procurement, Accounting, Distribution).

While core business processes will differ from company to company, they all have one thing in commonn: they are the inherent basis of a company’s competitive position and, effectively redesigned, can produce new competitive distinctions.

Traditional improvement initiatives are often process-oriented, but they tend to be defined within a narrow scope, in a linear, functional way. BvW Consulting will depart radically from traditional thinking, identifying “core” processes that cut across functional, geographic, business units. Each core process being initiated by a (internal) customer and ending when a need is satisfied.

The (internal) customer “value” criteria being defined as:

  • Quality such as meeting (internal) customer requirements, process integrity, minimum variances, elimination of waste, elimination of duplication, continuous improvement
  • Service such as (internal) customer support, product service, product support, flexibility to meet internal/external demands, flexibility to meet market changes
  • Cost such as quality assurance, auditability, distribution, administration, inventory, materials management
  • Cycle time such as time to market (concept to delivery, order entry to delivery), response to market forces, lead time (design, engineering, conversion, delivery), materials, inventory

Examples of core business processes include:

  1. Order to delivery to cash
  2. Product concept to design and development to marketing to purchase
  3. Service requisition to service delivery to receipt of payment