MBA 704 Individual Assignment by Jayden Roos

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School

North Dakota State University *

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Course

704

Subject

Business

Date

Apr 3, 2024

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docx

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Uploaded by HighnessSteel1477

MBA 704 Individual Assignment by Jayden Roos The process that I am familiar with, and I believe would benefit from improvement, is building and shipping orders. I used to work at Dakota Supply Group as a warehouse worker and the biggest thing I had to do was find the items that were part of an order and put them in boxes with labels. That is the shortened version of what the process was like, but I will go in- depth on how the process works and how there could be improvements to this process. The first step of the building and shipping orders process is receiving and processing the order. The process begins with receiving orders from customers, which can be done through various channels such as phone, email, or online orders. Once the order is received, it is processed by verifying the customer information, product availability, and pricing. After processing the order, the next step is to pick and prepare the items for shipping. This involves locating the items in the warehouse, checking for accuracy, and packing them securely for shipment. Once the items are prepared, they are shipped to the customer’s location using various shipping methods such as ground, air, or freight. The shipping carrier is selected based on cost, delivery time, and distance. In the case of returns or exchanges, the process involves receiving the returned items, verifying their condition, processing the refund or exchange request, and restocking the items in the inventory. The inputs that go into this process are customer orders, information about products such as the product's availability and pricing, shipping information such as addresses and delivery preferences, and inventory management systems. These aspects are what help Dakota Supply Group, the warehouse workers, and the shipment drivers be able to do their job exactly the way the customer wants it. With inputs come outputs and the outputs that come from the building and shipping orders process are shipped orders, customer communications such as order confirmations and shipping updates, returns/exchanges that are processed, and updated inventory levels. These outputs are to not only give the customer their order but to also allow the company to be able to keep track of which order is which and how much inventory the warehouse has. DSG’s building and shipping orders process deals with variation by using automated systems, providing training to employees, and monitoring performance. The use of automated systems for processing orders, managing inventory levels, and tracking shipments helps reduce errors and improve efficiency. Customers’ wants and needs change all the time, so the automated systems change the order whenever something changes so the warehouse worker is grabbing exactly what the customer wants. Providing regular training for employees to ensure they are up to date with the latest processes and procedures helps employees be able to give customers the best service possible. Lastly, regularly monitoring performance metrics such as

order accuracy rates, shipping times, and inventory turnover helps identify areas for improvement throughout the warehouse. Throughout the building and shipping order process, there are situations where the process might not work efficiently, or the process may produce unexpected outcomes. In this case, the situation would be having a high volume of orders, inventory shortages, shipping errors, and a lack of communication. During peak seasons or promotional events, there may be a high volume of orders that can overwhelm the system and result in delays or errors. If there are inventory shortages or stockouts, it can result in delayed shipments or canceled orders. Errors in shipping information such as incorrect addresses or delivery preferences can result in delayed shipments or lost packages. Poor communication between departments or with customers can result in misunderstandings or errors in order processing. The performance of the process is measured using various metrics such as order accuracy rates, shipping times, inventory turnover, and customer satisfaction rates. Order accuracy rates are the percentage of orders that are shipped accurately without any errors or discrepancies. Shipping times are the time taken to ship an order from when the order comes through the system to when the customer receives their order. Inventory turnover is the rate at which inventory is sold and replaced over a given time. Lastly, customer satisfaction rates are the feedback from customers on their experience with orders and shipping processes that can help identify areas for improvement. With all that being said, the process of building and shipping orders at Dakota Supply Group can be improved and I have just the idea. This proposal outlines a comprehensive plan to enhance the efficiency and effectiveness of Dakota Supply Group's order-building and shipping process. By adopting lean methodologies and incorporating technological advancements, we aim to streamline operations, reduce waste, and improve customer satisfaction. The proposed changes are designed to optimize the receiving, picking, packaging, shipping, quality control, and inventory management processes. The first part of the proposal would be to increase warehouse automation. Currently, there is only an automation system for picking and sorting orders, but I feel like DSG should implement automated systems for leveraging conveyor belts, robotic pickers, and barcode scanners as well to minimize manual errors and increase efficiency. The second part of the proposal would be to invest in smart inventory management. DSG should adopt just-in-time inventory and demand forecasting to reduce overstock and stockouts, optimizing warehouse space and resources. The third part of the proposal would be cross-docking implementation. DSG could minimize storage and handling by implementing cross-docking, directly transferring goods from inbound to outbound vehicles. This will allow for more orders to come through the system and more orders to be sent out throughout the day. The fourth part of my proposal would be warehouse layout optimization. I would have DSG redesign storage and picking areas to minimize travel time, improving overall workflow and labor efficiency. The last part of my

proposal would be to utilize data analytics to identify congestion in production, forecast customer demand accurately, and discover cost-saving opportunities. For this proposal to work, some requirements are needed. The first requirement is an investment in automation technology and software for inventory management and data analytics. The second requirement would be training programs for staff on new systems and lean principles. The last requirement would be for DSG to reevaluate how the warehouse is laid out and for the company to be able to redesign said warehouse. This proposal will bring in estimated improvements such as efficiency and productivity increase by up to 20% through automation and optimized workflows, a potential reduction in operational costs by 15-30% due to decreased manual labor and improved management, and customer satisfaction improving due to faster order processing and fewer errors. The proposal will have some costs that will need to be figured out to make the proposal work at a high level for DSG. The first cost would be an initial investment in new automation technology and software. DSG incorporating new automation technology and software may cost up to $500,000 but it would help make the company a much higher profit. The second cost that comes with the proposal is training and implementation costs. Teaching warehouse and shipping workers to use the new systems and putting the systems to use will cost DSG a fair amount of money but once again, the long haul will bring in much more cash for the company. Lastly, running costs may increase slightly due to having to have maintenance on the new systems but operational savings will help offset those costs. I will need to sell this proposal to the managers of DSG and I have three main steps in doing just that. The first step will be to highlight the potential for significant cost savings and ROI within the first two years of implementation. Managers love saving money and getting a good return for investing money so pushing those stats to them will entice them to give the proposal the time of day. The second step will be to emphasize the competitive advantage DSG will gain through faster, more accurate order processing. The more orders that are sent out and the more the orders are accurate, the more profit the company will receive and the better reputation DSG will garner. Lastly, I would use data and previous case studies to demonstrate the effectiveness of similar improvements in other organizations. Companies want to know that what they are implementing has a high rate of success and showing success stories will show that investing money in the proposal will be worthwhile. The potential barriers that could pop up with utilizing my proposal would be resistance to change from managers and employees, concerns in putting down initial concerns, and integrating the new technology. There are potential solutions to those barriers such as implementing change management strategies to ease the resistance to change, presenting a detailed cost-benefit analysis showing long-term savings and increased profitability to those who are concerned about the initial investment, and working with experienced vendors and IT professionals to ensure smooth integration of new systems with existing operations.

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MBA 704 Individual Assignment by Jayden Roos

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