May 2009 – Channel Crossing: Fulfillment

Automating and Integrating Call Center and Fulfillment Operations

By Anthony Sziklai

Automation can help you dramatically reduce labor costs, improve space utilization, reduce order cycle times and improve profitability.

Additionally, it can increase your visibility to both the demand and supply side of your business, providing you with timely intelligence visibility to business opportunities and threats, as well as the opportunity to react proactively.

THE ROAD MAP

Here are some basic “rules of the road” to guide you in managing your automation programs and technology investments:

Start with the process – Don’t automate a manual process; start by developing an operational flowchart of your existing operations. Ask yourself if you need all the steps in your current process, or if you can remove steps in the process through an automation strategy. Identify the steps that meet customer needs, and the cost of each step. Strive for visibility and real-time communications; revise the process flowchart as you build your automation strategy.

Low hanging fruit - Look for the “low hanging fruit” in your process assessment. These are areas that maximize your bang for the buck. They can be as simple as a change in process, or may include workforce management applications, order management and release software, replacing T-1s with SIP trunks, implementing VoIP switches or installing conveyors, voice or pick-to-light order picking automation and manifesting systems.

Demand requirements – Assess your current needs for call and fulfillment center demand at every step in your process. Build a profile of peak volumes within specific time increments, and not averages. Evaluate seasonal changes in demand. Then develop a strategy for managing peak demand at each point in the process. Take the time to refine your strategy by considering “ultra peak demand” that may result from rapid growth, acquisition or campaign performance.

Matching revenue to expense - Consider automation plan cost and the impact it will have on your balance sheet and P&L. Is my business volume consistent enough to justify the potential benefit I receive each month? Is there an alternative? Can I use “software as a service” or an outsourced strategy to develop a highly variable cost model in which I can match revenue to expense?

External partners - Evaluate which areas of your plan require external partners and how they can be seamlessly integrated. This might include external call centers and fulfillment partners. Insist that your partners operate using your software applications or at least provide a comprehensive interface to your systems.

Project management - This type of team should include operations, IT, finance, engineering and external key vendors that must meet their delivery dates and commitments regarding quality, functionality, integration, testing and training. Create an ROI target and assumptions for the entire program and key subsystems. Measure results and validate them against expectations, and communicate your performance and measurement expectations to your team.

With careful consideration of company needs and clear communication to internal and external team members, your company can reap the benefits of a fine-tuned, well-coordinated automation plan.

Anthony Sziklai is president of Moulton Logistics Management in Van Nuys, Calif. Sziklai also serves on ER’s Magazine Advisory Board. He can be reached at (818) 997-1800, or via e-mail at tsziklai@moultonlogistics.com.