Seamless Cash-Driven Enterprise: Challenges in order processing

Industrial companies are increasingly facing the challenge of making their processes more efficient. Complex structures lead to inefficient processes, particularly in the automotive, mechanical engineering, process and chemical industries. Typical problems are long lead times, a lack of transparency, unbalanced capacities and inaccurate forecasts. The order fulfillment process is the key building block, to think operational supply chain processes End-to-End. The trick is to balance the magic triangle of the supply chain with cash, Cost and service & profit margin. Companies are therefore looking for solutions to optimize their E2E order processing and establish more stable processes.

Our approach: from analysis to implementation

We take a holistic approach to optimizing order processing. Our approach includes:

1. analysis of the current supply chain processes
   We identify bottlenecks and potential through supply chain mapping, value stream analyses and stakeholder interviews.
2. data-based optimization
   Using Process Mining and industry-specific improvement hypotheses, we analyze throughput times and identify inventory optimization potential to make MTO and MTS processes more efficient. This also makes it possible to identify and quantify process-related deviations and changes in individual orders .
3. conception of the target process
   We develop an optimization strategy with clear measures, a business case to present the benefits and ROI and a tracking tool to measure success.
4. performance management design
   Through dashboards and KPI analyses, we ensure real-time monitoring and control of processes.
5. end-to-end supply chain transformation
   We accompany the sustainable implementation - from the rollout of checkpoints for order processing to the implementation of a company-wide S&OP process.

Success factor: cultural change in order processing

An often underestimated but decisive lever for optimizing order processing lies in the culture of an organization. In particular dealing with decisions along the process is a key issue.

The initial situation: Functional silos and hierarchical decision-making processes

In many companies, the organization is still classically hierarchical and functionally compartmentalized. Decisions are carried "upwards" along reporting lines - away from the operational level to managers who bear responsibility but often have only limited insight into the details of day-to-day business.

Typical challenges:

• Decisions are not based on operational knowledge
• Loss of information or misinterpretation along the communication chain
• Long decision-making paths lead to delays and unnecessary loops
• Motivation at work level suffers due to a lack of decision-making authority

The solution: turn the pyramid around

A modern approach relies on rethinking the decision-making logic. Instead of centralized control, decentralized responsibility based on higher-level governance- or rules of the game comes to the fore. Everyone individually has more responsibility - this is also referred to as 'Servant Leadership'.

Core principles:

The effect: Faster processes, motivated teams

Such a cultural change not only has a positive and measurable effect on the mood, but also on efficiency.

Results at a glance:

• Motivated employees
  Personal responsibility and trust promote commitment and initiative.
• Faster process throughput times
  Decisions are made where the expertise is.
• Relieved managers
  Focus on strategic issues instead of micromanagement.

Results: What companies achieve

Our projects deliver measurable results, including:

• Reduced inventories, without jeopardizing delivery capability.
• Focus and transparency individual customer orders from order entry to payment.
• Reduced throughput times, which also increases the attractiveness for the customer.
• Improved delivery reliability (OTD/OTIF) for higher customer satisfaction.
• Higher profitability through optimized product portfolio and cost control.
• Cultural change through personal responsibility of employees and managers, who can focus on strategic issues instead of micromanagement.

Our way of working

We work pragmatically and results-oriented:

• Hands-on mentality - from strategy to implementation
• Independence from IT systems - process optimization before softwareimplementation
• Data expertise - we extract the right information from ERP systems - and know where to find it
• Cash and P&L focus - solutions with a financial impact
• Close collaboration - from the outset with internal project teams (without functional silos)
• Flexibility and execution orientation - fast, effective implementation

Efficient order processing increases customer satisfaction and competitiveness. Companies benefit from shorter throughput times, higher delivery reliability and better results.

Have you identified optimization potential? Contact us - we look forward to talking to you.