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Example Cases
Learn valuable lessons from these organisations:
Lens Express Inc.
Customer Order Management System Paid for Within One Year
Lens Express (LE) implemented a software system to improve the quality/accuracy of its vitally important customer address data which it used in its mail order contact lenses business. Customer service was a very important component of the business and LE kept track of purchases, frequency of changing lenses etc., and sent reminders via e-mail, fax or ordinary mail. The software enabled all transactions with LE to be automatically checked at the point of entry i.e.
- During incoming telephone orders address details were matched with U.S Postal records for spelling, ZIP codes, street numbers, and automatic alterations were made
- Outbound prospecting calls incorporated the cleaning and standardising of customer information
- For Web orders the address correction software questioned possible errors and suggested changes.
LE reported that the savings accrued through the implementation were expected to pay for the software system within a year. (Rongstad,, 1999)
Ashwood Upholdery Co. Ltd
Customer Order Management System Helps to Reduce Quality Problems
At Ashwood Upholstery an electronic COM system replaced one that relied upon paper. This provided Ashwood with significant business benefits. Ashwood manufactured made-to-order furniture with some 10,000 product variants. However errors at the ordering stage were passing undetected through to production, and this led to a high number of rejected products and inefficiencies. The new COM system provided the following features and benefits:
- It was customised to suit the business
- It had in-built knowledge, and used selector lists helping to minimise errors
- Standard lead times were allocated with acknowledgements being sent to clients
- Resource reports were generated along with production plans
- Inventory was reduced by 25%
- Factory efficiency was improved through better production planning
- Quality problems were reduced from 200 per year to 12
- Business cash flow improved.
(Palmer, 2002)
Herman Miller Inc.
Customer Order Management System Benefits Manufacturer and Suppliers
At furniture manufacturer Herman Miller Inc. (HMI) the manufacture of orders involved the use of highly complex configurable parts derived from some 600 suppliers. A Web portal was provided which enabled HMI planners to:
- Monitor alerts and exceptions as they occurred
- Keep scorecards for tracking supplier quality, delivery and documentation.
Suppliers were able to view drawings and collaborate with HMI staff. Further benefits of the Web portal system were:
- Customer order completion rates increased from the 75th to the 99th percentile;
- Supplier invoice inaccuracies were significantly reduced;
- Suppliers required fewer dedicated personnel;
- Stock turns increased/lead times reduced;
HMI’s material planning group previously spent 80% of its time putting out fires but now proactively managed stock, interacted with suppliers and improved processes. . (Palmer, 2002)
Technetix PLC, UK
Customer Order Management (COM) reduces delivery lead times
Technetix used a proprietary COM system to automate ordering and the supply of customer premises equipment. Technetix customers were able to directly place orders via the Internet into an e-commence based Enterprise Resource Planning ( ERP) sales order processing system which replaced a manual order entry systems. The new system enabled some £600,000 of additional turnover in just two months of operation for one major client alone. Improved document flow management processes made it possible to receive orders in different formats which were then processed without human intervention. The system helped to cut delivery lead times, reduced stock levels and provided a better turnaround service. The COM system also offered the potential to run highly individualised order management processes throughout the organisation on a global basis. (Tinham, 2004)
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