Quality Management Process Of Etratech Company
Question
Task:
Prepare a detailed report examining the quality management process of Etratech Company to ensure good customer relationship.
Answer
Executive summary
In this report, it will be analyzing how the Etratech Company, one of the fastest-growing companies in the UAE, is operating its quality management proess to maintain a healthy sales process that ensures a good customer relationship. It also brings to notice the factors that are the causes of late delivery of their product along with their root causes. Moreover, it states the measures that can be taken to improve the delivery and shipment process of a company and contributes to the growth and development in all the departments of the business organization.
Introduction
Ectratech Group of Companies (L.L.C) was established in 1973 to satisfy the high demand of the UAE's growing market in the 1970s, and it is now supporting the flourishing of the millennial. The business has made a lasting mark in the import and sale of high-quality furniture fittings, architectural ironmongery, material, adhesives, and consumables that contribute to the woods and metalworking industries, thanks to the vision, direction, and leadership of Ectratech founders (Yoo and Ahn, 2021). The firm has a diverse workforce of over 120 employees, all of whom have been actively committed to the company over the years and will continue to do so in the future. In the UAE and around the GCC, they have a diverse portfolio of large projects covering high-rise construction, commercial and residential neighborhoods, and industrial projects. Our commitment to customer loyalty has always powered our creative marketing concepts, diverse selection of high-quality furniture and architectural items, and competitive pricing (Johannes and Alamsyah, 2021). Ectratech has expanded its presence across the country over the last four decades and two centuries, with more than 15 locations in the UAE, Oman, Qatar, Bahrain, and Kuwait. A few of their well-known brands are Blum, Leuco, Kleiberit, Forman, Domus Line, Lehmann, etc.
Process framework
Flow chart diagram- Use sales processes - how is sale is made
Etratech company uses the following process to enhance its sale:
Prospecting- The first step of the sale process is to identify the potential customer and determine the demand and need of the product. Ectratech then tries to find out the budget of the potential buyer to make an effective and immediate sale. In addition to this, they should try to know about all the details and information that is relevant in closing the deal with the customers. The ideal customer profile that is ICP is made that provides ideas to the company for planning the sale campaign (Priyanta and Zaman, 2021). Although the seller may need to talk to the customer directly to properly understand their need but generally the ICP which contains the need, budget, authority, and time of need give the seller the basic knowledge of the customer's demand.
Make Contact- The best method to make contact with the potential buyers is by examining all the platforms where the communication can take place like social media, through email, or phone calls. According to reports, 80% of phone calls go directly to voicemail, and just 2% of calls that are answered result in an appointment. The positive news is that 78 percent of decision-makers report a cold email prompting them to schedule an appointment or attend a function. Email is an excellent way to communicate with the lead in a straightforward and tailored manner. Using their outreach to present themselves, sellers should then try to establish trust and connection that will help in easy communication.
Qualify the prospect- The opportunity to learn more about the target prospect is gained by qualifying the lead (LUBIS et al., 2021). Potential buyers' objectives, challenges, budgets, and other essential decision-making considerations should all be weighed by sellers. It's also critical at this point to make sure the vendor is dealing with the correct decision-maker and to find opportunities where they can add significant value as per your ICP. By addressing all concerns to prospects, vendors can save time and team money. The prospect will either admire the seller's candor, or the seller will discover a new detail on why they're still curious. The easiest and sometimes only way to ensure that a candidate is a perfect fit for the sale is to speak with them.
Nurturing the prospect- It’s now time for the vendors to show the product’s relevance to the prospect’s requirements. Etratech then prepares to address all the crucial questions about the special deals and rewards, as well as give basic ideas on the benefits of the product to the customer. They also cultivate their lead based on all the facts, even if there are no objections, most prospects would need some kind of nurturing (Nan, 2021). Educating leads about the general product, service, or business, personalizing the contact, and solving typical problems are all part of lead nurturing.
Provide the customer with a solution: the emphasis of the cycle has been on the prospect. The sellers met the prospects, asked about their interests, and addressed their issues and questions. It's time to put all of the experience to use and present the best deal a vendor can make. Maintain relevance, targeting, and personalization of the offer to the needs of the prospective buyer along with making the deal relevant to the prospect’s challenges, budget, and long-term goals is now the only focus of a seller
Overcoming Objections: It would help the seller to become familiar with common objections. However, they need to ask more questions to know the root causes behind all the objections. The seller should keep a keen check on the reactions of the prospect.
Close the sale: Closing a contract successfully is an art that takes a lot of practice. The best practice is, to begin with, the product proposal and then show its various features before revealing the price (Kaur et al., 2021).
Figure 1: Flow chart process
Source: (Elkrief et al., 2021)
Fishbone diagram- Highlight delays in delivery as a factor
The factors that lead to delays in delivery of Etratech company are:-
Lack of visibility- It is important to maintain consistent visibility across the supply chain to ensure a secure and timely distribution from one end to the other. Without it, the businesses might become the victim of several inefficiencies that may result in delays, disruption, or the loss of shipment. Ectratech can achieve and retain a strategic edge by relying on technologies that provide better and fast shipment of a product.
Inadequate technology- the delivery or shipment of a product can be disrupted because of outdated applications or antique hardware as it restricts their ability to incorporate modern technology and access functionality that helps them to minimize shipping delays. Ectratech should invest in the right hardware and cloud-based applications that would offer a much more comprehensive solution, allowing couriers, 3PLs, logistics, and transportation businesses to remain linked and benefit from real-time data.
Motor Vehicles trouble- Vehicle breakdowns are inevitable from time to time. From this perspective, if there is a breakdown during a distribution, there are inevitable delays (Elkrief et al., 2021). It turns out that technology can help even in the most desperate situations. Etratech may use web-based monitoring to identify and dispatch the closest driver to a car that is having problems, and relay all appropriate shipments to the final destination on schedule and in priority order.
Lost Package- Perhaps the most aggravating encounter a consumer may have begun with the question, "Where is the package?" There are many scenarios, including a clear misplacement, a broken shipping sign, or an unintended elimination. Proof of Delivery will help to shield those involved, from the company to the intended recipient. Ectratech and its customers both will know where the package is during the shipping process thanks to real-time monitoring and tracking capability.
Weather Condition- Safety must still be a top priority for all distribution firms. Weather-related road closures invariably result in disruptions due to inefficient transits. Ectratech’s customers can find it inconvenient when atmospheric patterns determine delivery schedules, however, there is just so much delivery providers may do to guarantee on-time delivery.
Traffic: Finding a city with no traffic is virtually unlikely at this stage. Construction, collisions, big roadblocks, and detours are all contributing to increased delays in people's travel. Carrier of Ectratech’s couriers will benefit from route optimization applications. It will decide the shortest path and change it in real-time to prevent disruptions triggered by incidents (Radhika and Gomathy, 2021).
High Volume Shipments- Delivering or shipping business without an appropriate computing infrastructure will be frustrated by a rapid or unpredictable rise in package delivery volumes. This is particularly prevalent during the holiday season when the shopping frenzy starts. When the number of online orders increases, so does the need for courier management tools that can easily deliver the required amount to drivers through the most productive routes.
Failed Delivery Attempt- Customers, rather than courier firms, could be to blame for a botched distribution attempt if no one was present to accept the package (Meyers et al., 2021). To prevent delays, if an effort to deliver the shipment has been received, the driver will have to move on to pending orders. They normally have a set period to wait for a response. Fortunately, with the correct track and trace scheme, this problem can be quickly resolved. This keeps the consumers informed in real-time and lets them know when they can expect their package.
Customs- To prevent any complications, as a carrier dealing with customs on a global scale, Etratech must ensure that all relevant paperwork is available and filled out. Delays are possible without adequate paperwork, and if officials try to check the cargo, matters will easily spin out of control. Retailers would provide a backup plan if supplies are stopped at customs. Partnerships with dependable courier providers that keep records correct are part of the contingency strategy.
Figure 2: Fishbone process
Source: (Putri, 2021)
Analysis
Root Cause analysis
First, Ectratech must ensure safe and timely delivery from one end to another, it is critical to maintaining consistent visibility throughout the supply chain (Salaou et al., 2021). The lack of visibility may result in various kinds of difficulties that can cause loss of shipment, delay, or disruption. Ectratech can acquire and sustain a competitive advantage by focusing on innovation that allows better and quicker product delivery. Second, since old software or obsolete hardware hinders their ability to integrate new technologies and access features that help them reduce shipping delays, a product's distribution or shipment may be interrupted. Putting money in the right infrastructure and cloud-based software will provide a much more robust approach, enabling couriers, 3PLs, distribution, and shipping companies to stay connected and gain access to real-time data. Third, Breakdowns in cars are unavoidable from time to time. From this standpoint, if there is a malfunction during a delivery, delays are unavoidable. Also in the most desperate circumstances, technology has proven to be of assistance (Putri, 2021). Fourth, when a driver picks up a parcel from a shipper, there are a variety of situations in which the driver does not tender the right piece or number of parts. The package enters the supply chain without being confirmed or scanned, and it travels in the dark until someone notices and fixes the problem. During sorting, the seller of Ectratech can make a mistake or the box may not be loaded due to some reason this can also result in the loss of a package.
Fifth, Rain can cause a variety of things that cause delays or changes in the scheduling of shipments. Weather hazards such as snow, ice, fog, wind, temperature, visibility, floods, hurricanes, tornadoes, and other natural disasters will also impact distribution times. Even if mild conditions, such as snow and rain, do not deter traffic from moving, it can cause slow movement of vehicles as roads get slick and visibility is limited. This alone will affect carriers' ability to supply packages on a consistent timetable. Sixth, freight and distribution providers are constantly forced to ensure dependable and timely schedules as traffic flows and congestion on highways and urban roadways increases (Savchenko and Balenko, 2021). This has an impact on a shipment of Etratech that rely on trucks, all of which are becoming increasingly important to both public policymakers and private sector operators. Seventh, a sudden or unexpected increase in package delivery volumes will frustrate a fulfillment or shipping company without the necessary computing infrastructure (Mahmood et al., 2021). This is especially true around the holidays when the shopping madness begins. The delivery of products may take a long time if there is an increase in the number of products that need to be shipped. Eight, if no one was present to receive the package, consumers, not Etratech company, could be to blame for a failed distribution attempt. If no attempt to deliver the shipment has been made, the driver will have to move on to pending orders to escape delays. They are usually given a certain amount of time to wait for an answer. Ninth, as a multinational carrier dealing with customs, corporate entities must ensure that all necessary documentation is available and filled out to avoid any problems (Ulmer et al., 2021). Without proper documentation, delays are likely, and if authorities decide to inspect the cargo, problems will soon get out of control. Usage of outdated tax information can also be one of the reasons for the delay in delivery.
Figure 3: Root causes analysis
Source: (Horvat et al., 2021)
Recommendation
It is identified that certain steps can be taken to improve the delays in the delivery process which are explained below.
Strong Internal process- Good coordination between each department of the business organization is essential for the speedy delivery of a product. Measurable primary success metrics and established goals are used in clear positions. For example, at the end of the day, all new orders must be entered. The real-time data structure, also known as dashboards, allows the team to concentrate on completing activities. When teams work together to complete well-defined tasks and their status is known in real-time, huge productivity improvements are possible (Papajohn and El Asmar, 2021).
Be proactive, not reactive- A reactive manufacturing process results in the late recognition of the errors that are the reason for the delay in the delivery or shipment of a product. Proactive manufacturers have the versatility needed for fast delivery.
Create A list of courier service- Preparing a list of courier service providers beforehand along with the price they charge according to the weight and destination where the product needs to be delivered will help in that fast delivery of a product.
Use of EDI- Most transporters use EDI (electronic data interchange), which essentially replaces old documentation with electronic data. As you would suspect, getting rid of paperwork speeds up the operation. This method is used by many customs departments because it allows for the processing of a much greater number of goods at the same time (Horvat et al., 2021).
Open up frontier- Company organizations should have contacts and relationships in the destination countries so that they know which facilities to use, which to stop, and what they should do ahead of time to ensure a smooth shipping process.
Prepare for custom clearance in Advance- Custom’s clearance is a time-consuming aspect of the distribution process, but there is no way around it. The opportunity to declare products electronically, even before they leave the country, is a positive option that more and more countries are having. Your package would then bypass customs and go directly to its destination (Putri, 2021).
Keeping customers informed- Holding the clients up to date with the progress of their orders would help the operation run even more smoothly for them. So, even though there's nothing a seller can do to speed up the process, they can make your clients happy by providing detailed delivery information (Malgaroli et al., 2021).
Conclusion
From the above study, it can be concluded that Ectratech Group of Companies (L.L.C) has made a lasting mark in the import and sale of high-quality furniture fittings, architectural ironmongery, material, adhesives, and consumables. The firm has a diverse workforce of over 120 employees, all of whom have been actively committed to the company over the years and will continue to do so in the future. But some reasons cause a delay in the delivery of their product. Lack of visibility can lead to inefficiencies that may result in delays, disruption, or the loss of shipment. Investing in the right hardware and cloud-based applications would offer a much more comprehensive solution, allowing couriers and transportation businesses to remain linked and benefit from real-time data. Safety must still be a top priority for all distribution firms. Weather-related road closures invariably result in disruptions due to inefficient transits. Ectratech should use ED1 which replaces old electronic data and helps in speeding up the delivery of a product. They should start building strong communication within the company to ensure that there is no mistake on their part that can cause a delay in delivery. Moreover, they should keep updating customers about their packages if there is a disruption in the delivery process.
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