La Vajilla Eneriz, S.A., a firm with its headquarters in Zaragoza, Spain, devoted to the commercialisation and distribution of glassware, china, porcelain, and kitchen goods in Spain, Portugal and France, needs to reconsider one of its main business processes: the order fulfilling process. The objective is to improve customer service and materials handling and logistics, areas in which La Vajilla Enériz put emphasis for competitiveness.
The company considers that the following issues are crucial for competitiveness:
- Excellent customer service
- High stock turnover, and
- Excellent purchasing and supplier relations
Thus, La Vajilla Enériz needs to reconsider its order fulfilling process, with the goal of improving the three basic business areas above. The project objectives are twofold: obtaining sizeable improvements on the order fulfilling process, and disseminating the lessons learned during the experience, so that other European firms can benefit from it. For the first objective, appropriate measures stemming from the basic objectives are:
- Percentage of orders served complete;
- Percentage of orders served on time;
- More accurate information available to customers at order taking time (e.g. regarding stock availability, or delivery time) and leading to better customer satisfaction;
- More activities possible at order taking time in order to improve overall effectiveness (e.g. customer credit checking, leading to a decrease in bad debts);
- More effective and efficient stock handling procedures based on the availability of more timely information leading to a decrease in inventory;
- Better logistics routines between suppliers and warehouses and between warehouses and customers, and even between warehouses, for a decrease in transportation costs;
- Better purchasing decisions, leading to a decrease in costs of goods sold; and
- Better relationships with suppliers; leading to a decrease in returns and an increase in purchases per supplier.
As for the second objective, best business practices resulting from the project will be documented, and dissemination efforts designed and implemented, including the development of teaching materials (e.g. cases) needed for effective dissemination actions. Executive seminars in business process improvement and innovation will be prepared and held at both sectorial and regional levels. Appropriate measures are the number of seminars, number of participants in them, and the usual participants' questionnaires.
Funding SchemeCSC - Cost-sharing contracts