4 Ways to Build Business Success: DELIVERY AND DISTRIBUTION SYSTEMS
We have previously discussed about Leverage that is a systematic approach in a system so that the organization may run automatically, making the enterprise profitable.
To work towards Leverage we must approach by taking one step at a time, mastering the four areas of strategies in which a business can implement small advancements leading it to massive results.
In our last blog we talked about the first business master plan: People and Education.
The next strategy of the four-part blog we will explore DELIVERY AND DISTRIBUTION.
Delivery, a fundamental component of commerce and trade and involves transport and distribution. It is all about getting your products and services into your customer’s hand that is an important part of your business plan.
Your team has been performing high level delivery systems, with a maintained distribution process and now it’s time to accelerate your business by systematizing the management of the Business and leveraging technology.
You need to have certain processes and procedures that are part of a larger system sustained and reinforced throughout your business; otherwise the systems will break down. You need to build a strong foundation by filling in the missing critical input and lacking comprehensive review. There should be systematic approach of all the steps that your team should follow to deliver at a high level to the customers.
You should start by asking a few questions.
- What do I do every day and week and month?
- How often do I do that?
- How long does it take to do each task?
- What would be considered a good day of activity in tasks?
- How do I carry out each of the tasks?
- Why do I do it the way that I do? What happens if I don’t?
Once you figure out the processes and key tasks, then you should do the similar exercise with your team. This is the first step to start the process of getting the business to work without the owner. By systematizing each section of how the business runs from how the phone is answered, and how the management team performs planning and strategy. It will further simplify and systematize the business to enable consistency and predictability.
We should record all the systems and procedures within the business. It starts from the owner getting its team members to record their daily or weekly tasks from the bottom of the organization first. Mostly large companies are maintaining such processes, structures, and system.
The following are the questions that need to be addressed when documenting these procedures and finding the ways that helps in eliminating redundancy, simplifying steps and improving execution.
- What do you think are the most important processes in this organization?
- Which of these processes can help in improving the efficiency or serving the customers better?
- In what ways does our organizational structure cause inefficiency, lack of accountability, poor communication, delays, poor customer service, and/or lack of clarity of roles?
- How can we improve our structure?
- What are the most important systems and technology in the organization?
- Which of these should be the highest priority to improve?
Here are a few ways to document your input on systems.
- Computer Systems
What systems should you dissect, retool or refine? All of them. Start with each of these areas.
Daily office operation systems
- Answering the telephone
- Receiving and opening the mail
- Purchasing and maintaining office supplies and equipment
- Dealing with incoming/outgoing delivery needs
- Backing up and archiving data
Product development systems
- Developing product and protecting it legally
- Developing packaging and collateral material (eg catalogues)
- Developing manufacturing methods and procedures
- Developing manufacturing costing and bidding process
Manufacturing and inventory systems
- Selecting vendors
- Determining product or service warranties offered
- Establish product or service pricing (retail and wholesale)
- Establishing reorder process for inventory production
- Receiving and storing product inventory
- Reconciling physical inventory with accounting records
Order processing and tracking systems
- Taking orders and recording the orders by mail, fax, phone or online
- Fulfilling and packaging the orders
- Confirming details before service or product delivery
- Sending the orders
- Management system for freight, couriers and vehicles
Order tracking systems
- Invoicing and Accounts Receivable Systems
- Invoicing customers for the orders
- Receiving payments for the orders and crediting customers for payment (whether cash, check or credit card)
- Monitoring credit control and age of accounts
- Starting the collection process for outstanding receivables on a timely basis
Customer Service Systems
- Returns procedure for inventory receiving and customer payment return
- Responding to customer complaints
- Replacing defective product or performing other warranty service
- Measure quality and professionalism of service delivery
Accounts Payable Systems
- Purchasing procedures and approvals required
- Payment process for supplies and inventory
- Petty cash
Sales and Marketing Systems
- Create an overall marketing plan
- Designing and producing promotional materials
- Developing general leads and prospects
- Creating an advertising plan
- Creating a public relations plan
- Creating a direct mail plan
- Developing and maintaining a database
- Developing and maintaining a website
- Analysing and tracking sales statistics
- Continuously measure number and origin of all leads
- Measure conversion rate for each salesperson
- Measure your average $ sale for every team member
- Keep a record of your profit margins
Technology can help systematize and simply your process. Investigate CRM (Customer Relationship Management) systems to manage data. There are many softwares available that can help you with financial reporting and automated marketing deployment thereby reducing time and saving your organization money. Consider upgrading the old computers and phone systems that lack capacity to meet your needs. Investing in the short-term can lead to big returns in the long-term.
Stay tuned for Part Three: Systems and Technology
Have you considered hiring a certified professional business coach to guide you through the process? We will help you make the most of all four leverage areas. This is not short-term exercise; we need commitment from your side.
Having a Business Coach isn’t a luxury; it is a necessity that your business must-have.
Accountability is one of the most prominent strengths of working with a Business Coach. It is hard to get the right objective about your business from yourself, but your Business Coach will always tell you the truth, the truth that it may be difficult to accept. With years of successful experience, we can help you develop long-term and short-term goals and strategies, provide valuable insight and improve your business in areas that you might have overlooked.
We know that you may be able to survive without a business coach, but can you thrive?
MADASKY Consulting has been helping businesses and focusing on clients to implement logical and easy to apply systems and processes to grow their enterprises. Unlike the consultants that hand you a list of what you are doing wrong, we will help you to make a real change in your business that is enduring and transformational.
Reach out to us and we will help you to overcome your business challenges and grow. Avail complementary business strategy session.
MADASKY Consulting, Business Coaching, Consulting & Advising.
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