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The goal of collecting this information is to determine how you can create a total customer experience This involves creating a satisfying experience
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Manager s Guide to Business Planning
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for the customer at every touch point and in every interaction the customer may have with a company representative This information will help to shore up those touch points and interactions
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What is your current level of satisfaction with the following, on a scale of 1 10, and why did you give that rating (10 = Extremely High, 5 = Moderate, 1 = Extremely Low)
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Quality of products/services used Do they perform to specifications _____
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Why did you give this rating __________________________________
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Reliability of products/services used Do they deliver the same or better quality each time ____ Why did you give this rating __________________________________ Ease of contact ____ Why did you give this rating __________________________________ Responsiveness of the company representatives to resolve issues ____ Why did you give this rating __________________________________ List any specific issues you would like to be resolved ______________ __________________________________________________________ What one recommendation would you make to raise your scores __________________________________________________________ How do you compare our overall performance to our competitors (Best, Better, Equal,Worse) _______________ Why did you give this rating __________________________________ What is your future plan to purchase our products/services (Increase, Stay at Current Levels, Decrease) ______________________________
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S u rvey Scoring Scores of 8 to 10 for each question are a strong indicator that they can be counted on for repeat purchases; other scores represent some satisfaction, neutral, or dissatisfied customers Use the comments to make critical improvements if you want to be able to depend on their revenues over time Use the input regarding future purchases to determine where there are opportunities for up-selling and cross-selling of your products/servicesThis may help to determine if your revenues will increase, stay flat, or decrease in the coming year
Fail to Plan Plan to Fail
Forecasting Supplier Capabilities and Costs
The information gained in conversations with suppliers is especially valuable to support functions that are often referred to as cost centers The questions you will want to ask focus on three key metrics: (1) cost of materials (raw, subassembly, or finished) and services, (2) quality of materials and services, and (3) speed at which the materials and services are delivered to the company
QUESTIONS FOR SUPPLIERS
SMART
Cost I Do you anticipate cost increases or reductions during this business year MANAGING I What specific cost reduction programs are currently being used to control costs I Do you currently have the capacity to handle an increase in orders of 10 to 20% Quality I What specific programs (Lean, SPC, etc) do you currently employ or plan to implement that will ensure the quality (conformance to specifications and reliability) over the next two years I Do you have a program for assessing and selecting subcontractors so that we can be sure that our expectations are met Speed I What process improvements or continuous improvements are being made to decrease turnaround times and increase shipping speed or materials and services I What do you need from our company to make these improvements
Benchmarking
Use benchmarking for identification of best practices to establish attainable goals and targets for improvement, especially important in competitive situations
WHAT SHOULD BE BENCHMARKED
I I I I I
SMART
Key Business Drivers Sales per Employee Costs vs Industry Averages Product Margins for Comparable Products Order Fulfillment Rates (accept, process, fill, ship, deliver)
MANAGING
Manager s Guide to Business Planning
Using This Data
As Peter Drucker once stated, Information by itself is useless unless you do something with it Acting on this advice, the next steps will provide a guide for creating action with your information
PROFIT AND COST CENTERS
Both profit centers and cost centers are critical to the success FOR of every business Profit centers include sales, marketing, and EXAMPLE manufacturing Cost centers include finance, human resources, purchasing, and information technologyThese functions may also be referred to as shared services In the planning process, many companies now use the concept of zero-based budgeting, in which each year is planned with a blank sheet of paper, rather than using the past year s performance and just adjusting the numbers Zero-based budgeting requires a more complete analysis to arrive at a final determination of what the most accurate forecast is for the coming year
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