Process chain management serves to organize business processes in intralogistics and other industrial segments. According to Otto Schlichtherle, Logistics IT Consulting, it combines process-oriented thinking with the alignment of processes with the customer order. Prior to the actual optimization, an analysis of the potential and a continuous optimization approach are considered.
Note: Even if similarities in the approach are unmistakable; the process chain management has nothing to do with the actual state analysis and the target concept, which describe the basics of warehouse planning. The targets defined during warehouse planning only concern the respective warehouse or distribution center currently being planned and are not necessarily customer-oriented. The processes located outside the warehouse are not affected.
Individual sections, detailed target definitions
All processes are geared to the customer; they must also be designed according to certain criteria in order to effectively manage and control the four target variables of time, costs, quality and service. This also includes the preceding product order of the business customer or end consumer.
Important: If changes are made to the faulty process, a previously functioning process can be affected. The continuous optimization approach is therefore usually not optimally fulfilled. However, in order to ensure a functionally interlocking process chain, the process owner tries to design his optimizations in such a way that at least the process before and the process behind it are not affected. Often these processes function smoothly, but after improvement, they themselves appear to be in need of optimization.
Process chain management: time, costs, quality and service
Especially when it comes to time optimization of the entire ordering process, including the associated and downstream logistics processes (goods must be made ready for dispatch and shipped), process chain management enables a company to react faster and more flexibly to customer wishes or their requirements. This also includes service, which, in addition to the reliable and punctual execution of customer orders within product delivery, also takes into account maintenance and complaints. The quality demanded by the customer has first priority, especially in the sub-areas, service, product and costs.
Application examples for process chain management
Each of the points listed here stands for an individual “partial” process optimization.
- Visualization
- Simulation of business processes
- Modelling of business processes
- Optimization of business processes
- Process cost analysis
- Quality management
- Logistical strategic planning
Summary:
The process chain management is applied in industrial environments (B2B) as well as in the traditional customer segment (B2C). The system optimizations that have been initiated are basically customer-oriented and only solve problems in one area. The entire logistics value chain is not considered because of the inherent complexity. The target parameters to be improved are time, costs, quality and service.
For more information on process chain management, see also Perfect Order Fulfillment and Materials Management in Production.
Teaser image: Dreaming Andy – Fotolia.com
Image in body text: Otto Schlichtherle
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