Stop Buying Customer Satisfaction with Your Profits
Seven design guidelines to boost Order-to-Delivery Excellence
The Order-to-Delivery (O2D) process is an essential, cross-functional core process for the business success of manufacturing companies. It encompasses all activities required to fulfill customer demands - from the customer's order to production and delivery of the product. By strategically designing the O2D process, companies can reconcile customer satisfaction and business success and solve a supposed dilemma: How can tomorrow's customers be served quickly and flexibly with tailored products and services while at the same time enabling stable and reliable planning for operations? However, this requires managers to change their thinking from a function-oriented perspective to a true end-to-end understanding of business processes. The Porsche Consulting white paper shows the central importance of the O2D process for achieving business objectives, and provides insights into proven design principles for the transformation towards a consistently implemented end-to-end process from customer to customer.
- Real competitive advantage can be achieved by offering customers the flexibility to make trade-offs among the dimensions of product characteristic, price point and delivery time
- Turbulence costs incurred by ensuring delivery performance carry annual cost-saving potential. Furthermore, missed revenue opportunities on the market side show room for improvement
- Companies can offer the same or a very similar product and capitalize on various customer price sensitivities by offering faster deliveries in exchange for a higher price.
- Quick and valid information availability and short decision paths are key for optimal decisions, such as identifying planning bottlenecks and taking appropriate countermeasures
- One designated O2D organization with line responsibility as well as authority for strategic process design is one solution to ensure better cross-functional coordination.
- Data on consumer preferences can be capitalized on when there is a fully established end-to-end process and a model of collaboration between sales, production, and procurement
- The customer experience — from order placement to product handover—further emotionalizes the customer for the product and the brand and increases customer satisfaction
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