Recommendation</li></li></ul><li> Whom to Listen?<br /><ul><li> All stake holders</li></ul> Who are the stake holders?<br /><ul><li> External</li></ul>End User, Distributor/Dealer, Supplier, Govt Regulatory bodies, Society<br /><ul><li>Internal</li></ul>Employee<br />
Why to listen and learn?<br /><ul><li> Customer retention
Cost to acquire a customer is 7 to 10 times the amount of retaining an existing customer.
5% improvement in customer retention can result up to a 75% increase in profitability</li></ul>- L&T’s customer-focused approach helps to retain huge customer base.<br /><ul><li>To understand strength and weaknesses of suppliers
Enhanced linkage between value chains.</li></ul>- Asian Paints forecasts more quantity before festive seasons as per dealers information<br /><ul><li>To increase awareness about the latest Government Regulation that may affect business</li></ul> - Nike was criticized for violating labor and overtime law in China, Indonesia.<br /> - Any Project company’s dealing with Govt projects becomes crucial(e.g. L&T)<br /><ul><li>To resolve potential issues like land/site acquisition
To achieve higher operational efficiency.</li></li></ul><li>Why to listen and learn?....Contd.<br /><ul><li> To develop new products and to improve existing product.</li></ul>- Nike has come out with many customized product from customers’ ideas.<br />- Asian Paints came out with small packets of size 50ml/100ml/200ml as per customer requirement.<br />
How to listen and learn?<br />What could organisations do?........<br /><ul><li>Leadership Commitment
Supply Chain</li></li></ul><li>How to listen and learn?...Contd.<br />Listening to Customers<br /><ul><li>A firm’s competitive advantage is to respond to the customer</li></ul>requirements, faster than The competitor, with highest quality,<br />at lowest possible cost<br />Business CTQ<br />Sources of customer CTQ’s<br /><ul><li>Survey results
How to listen and learn?...Contd.<br />A typical Survey Questionnaire for home-painting customers:<br />How do you decide on painting-color options for your home:<br />Refer interior design/furnishing magazine<br />If option (a), Please specify the source: <br />Hire an interior designer<br />Inspired by what you see other places: <br />If option (c), Please specify the source: <br />By options available in product catalogue<br />By visiting the hardware/paint shop and pick among the options available<br />Go to Asian Paints retail showroom<br />Based on advice offered by our in-house experts at Home Painting Service<br />Sample boxes available at Asian Paints Retail outlets<br />Go by your own aesthetic judgment (don’t refer anyone) <br />Others<br />If option (e), Please provide details: <br />How did you decide on Asian Paints for painting options for your home:<br />Based on your previous experience with Asian paints<br />Referred by architecture/Interior designer <br />Referred by painter/contractor hired for home painting job<br />Referred by friends/relatives<br />Company website<br />Shopkeeper at paint-hardware shop<br />Other : ………………………….<br />
How to listen and learn?...Contd.<br />Co-Creation:<br /><ul><li>Share Customers’ ideas</li></ul> - Nike provides a platform for customers to share their ideas about improvements to existing products or about creating new products. These ideas go through a rigorous idea selection, design, development, and testing process, with Nike sharing due credits with the customers sharing such ideas.<br /> - Asian Paints launched ColorNext, the first India specific color forecast, involving interactions with direct consumers, designers and thought leaders.<br />
How to listen and learn?...Contd.<br />Suppliers/Distributors:<br /><ul><li>Ensure frequent market visit by Company’s Sales Manager
Periodical feedback from Suppliers/Distributors
Discuss and explore the areas of improvement.</li></ul>Employees:<br /><ul><li>Suggestion schemes.
Job rotation</li></li></ul><li>Sample format of knowledge sharing<br />
How to listen and learn?...Contd.<br />Management Systems/Improvement Initiatives/Regulations:<br /><ul><li>Implementation of Quality Management Systems-ISO9000.
Implementation of EMS(ISO 14000) & OHSAS/Integrated Management Systems(ISO 27000).
Improvement Initiatives such as TPM , TQM, Kaizen, Six sigma.
Proper Liasoning with regulatory bodies for site/land acquisition, environmental clearance.</li></ul>Shareholders:<br /><ul><li>Send regularly Financial Statements of the company.
Implement suggestions/feedbacks given by share holders during AGM/Half yearly/Quarterly meetings</li></ul>Society/People:<br /><ul><li> Enhance quality engagement with society/people.</li></ul> - ITC uses e-choupal to get the pulse of rural consumers.<br />
Recommendations:<br /><ul><li> Ensure regular feedback from customers and try to implement those.
Online Customer feedback system might be an effective means.
Ensure visit of Area Managers to interact with Distributors/Dealers.
How do you prioritize the batch manufacture for various sizes and segments? What’s your scheduling method?
How do macroeconomic downturns affect you and how do you cope up with them?
How do you handle cyclical nature of a portion of business? (application of glues goes down during monsoons, some part of furniture driven business related to housing which is macroeconomic)
Can you give example (from last five years) of forecast being off target, resulting in losses? What have you changed in forecasting as a result of that?
You have grown by acquisition over the last few years. What are the best practices you noticed in the acquired companies and were you able to blend them into your work processes as well?
How did you bring down cash conversion cycle in year 2009?
What are the quality standards that you adopt on finished products, WIP and raw materials, if any?
How sensitive are you to raw material quality? Does this modify your process? Is checking done at the supplier gate or your gate?
How many raw material suppliers do you have? Do you have strengths in most of raw materials? Do you have any strategic alliances with any supplier?
Do you have an employee suggestion scheme? What is the percentage implementation?
What is you production lead time? How does it compare to industry average? What steps did you to take to improve it?
Are there alternative routes for production of your finished products? If yes, why did you chose the one that you have employed?
How do u audit your suppliers ? Can you show the supplier quality rating for strategic suppliers for the last 2years?What improvement initiatives are carried out by you in your supplier & distributor areas?
What are the critical functions /processes and how do you measure its reliability?</li></li></ul><li>THANK YOU<br />