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4/12/2019 Strategic Management

Accounting (MAC007A)
One Time Delivery (OTD Ltd.)

Submitted by: Hafiz Muhammad Ahsan Javed


Student ID: 1357120
Group Members:
Name: Deepak Student ID: 1392741
Name: Afroz Abdullah Student ID: 1374720

Submitted to: Nadeem Tahir


Businesses today have a customer-focused corporate mission. "It is a typical mission statement
to be number one in delivering value to customers." Therefore, how a company performs from
the point of view of its customers has become a priority for top management. The balanced
scorecard requires managers to translate their general customer service mission statement into
specific measures. Companies should articulate goals for time, quality, and performance and
service to put the balanced scorecard to work and then translate these goals into specific actions.
For example, senior managers at OTD set general customer performance goals: get standard
products to market sooner, improve customer time to market, become the supplier of choice
for customers through partnerships with them, and develop innovative customer-specific
products. The managers translated these general objectives into four specific objectives and
identified a suitable measure for each of them.
The balanced scorecard is a system of combining performance measures in a single scorecard,
both financial and non-financial. For four perspectives, it includes performance measures:
financial, customer, internal business processes, and learning and growth (innovation). It does
not need to be limited to four points of view; more can be added. There are two possible
candidates for social responsibility and environmental concerns. The balanced scorecard
focuses on the connection between business processes and decisions and outcomes. It is
considered as a guide for formulating, implementing and communicating strategies. It also
helps in tracking the performance and providing quick feedback for control and evaluation.
This research uses qualitative methods to analyse the current state of the OTD process and
which strategies can be used to improve the process, using both primary and secondary source
methods through interviews and reviewing the reliable studies conducted in this aspect. The
analytical findings have been used to suggest the best methods companies can use to improve
their business with the OTD process.
On time delivery scorecard have four different perspective. Each and every perspective contain
different goals and suitable measurement for each goal. This looks at the appropriate on-time
transportation (OTD) strategies that are critical to enhancing customer reference in the delivery
chain. During my many years in the field of logistics, I was successful in finding out that the
OTD method is one of the predominant difficulties that groups have, despite the fact that they
have weaknesses, and that most of them have not graduated in the way they do.
The balanced scorecard facilitates performance review and feedback on a continuous basis.
During my many years in the field of logistics, I was successful in finding out that the OTD
method is one of the predominant difficulties that groups have, despite the fact that they have
weaknesses, and that most of them have not graduated in the way they do. Customer
perspective also have different goals and their different measurement in this regard. Their new
productivity and how they get benefit from their new sale. And their percentage of sales from
their prosperity products. It also focused on how they got their preferred supply. The responsive
supply can also get from the customers with their feedback. Preferred supplier can get from the
key-account purchases and how they can do the ranking of their key accounts. They also get
their customer partnership with the help of cooperative management efforts.
OTD SCORCARD

•survival •new products


•success •responsive delievery
•prosperity •preferred supply
•number of
cooperative members

financial customer
prespective prespective

innovationa
internal
and
business
learning
prespective
prespective
•design production •focus on task
•increment in ew •technology and
products leadership
•excellence

Firstly, we have a financial perspective. Financial perspective have different measurement


regarding the survival of company, success of OTD and how OTD attain prosperity. For the
assessment whether the company of OTD achieved its source from a reliable purpose. The
company should measure their cash flow and sees that how much they gain profit from their
work. The also gain success from the quarterly sales growth and their operating income with
the help of different divisions. OTD can gain the prosperity with the increment of its market
share. The generic value chain model was introduced by Porter in 1985. The value chain is all
the internal activities that a company undertakes to produce goods and services. VC consists
of primary activities which directly add value to the final product and support activities which
indirectly add value. Model of value chain. It shows primary activities: logistics inbound,
operations, logistics outbound, marketing & sales, logistics and secondary activities: firm
infrastructure, procurement, human resource management, technology. A combination of
primary and secondary activities will result in profit if properly managed. While primary
activities directly add value to the production process, they do not necessarily matter more than
supporting activities. Competitive advantage nowadays comes mainly from technological
improvements or innovations in business models or processes. Activities such as' information
systems,'' R&D' or' general management' are therefore usually the most important source of
differentiation advantage. On the other hand, primary activities are usually the source of cost
advantage, where it is possible to easily identify and manage costs for each activity.

Goals Survival success Prosperity


Measures Flow of cash Superior profitability Increase the share of OTD
in different markets
On time work Operating income by Expand the work
division

Michael Porter repeatedly reminds us that "Competitive advantage is a relative concept" means
that results must be stacked against those of other firms operating in the same industry facing
a similar competitive environment. Absolute performance is meaningless without this
comparison. If your company achieved last year's sales growth of 20 percent that could cause
cheers and slapping back all around until you learn that all of your key competitors exceeded
30 %. Knowing you realize quickly how much economic value you left on the table.
Customer perspective also have different goals and their different measurement in this regard.
Their new productivity and how they get benefit from their new sale. And their percentage of
sales from their prosperity products. It also focused on how they got their preferred supply.
The responsive supply can also get from the customers with their feedback. Preferred supplier
can get from the key-account purchases and how they can do the ranking of their key accounts.
They also get their customer partnership with the help of cooperative management efforts.
The differentiators are performance driver indicators that are monitored by the company to
maximize the core indicators ' value. The latter indicators focus on the company's product
attributes, relationship with customers, image and reputation. Unlike the customer core
indicators, the selection of performance driver indicators is more sensitive to the authenticity
of the strategy. There is no equilibrium scorecard standardizing differentiators. These
indicators must be determined and optimized directly in line with the unique customer strategy
of a particular organization. Ultimately, these indicators focus on providing value to customers
while nurturing an organization's competitive advantage over the other. A standardized
template is not the Balanced Scorecard. It has to be put by organizations to work independently.
Effective customer perspective utilization can help maximize the benefits of all other BSC
perspectives.

Goals Responsive supplier Preferred supplier Customer partnership


Measures Response by the customer Rank of different key Cooperative members in
accounts. OTD
On time delivery Management efforts

Internal business perspective also have different goals and different measurement regarding
those goals. Their first goal of OTD is the capability of technology and they got their
achievement with the help of manufacturing geometry and the competition of company in the
market. OTD internal business second perspective is to achieve the manufacturing excellence
and they measure their ability with the help of cycle time unit cost yield. They also focus on
their new products introductions with the help of different schedule and plans.

Goals Technology capability Manufacturing New product


excellence introduction
Measures Manufacturing Cycle time unit cost deal Schedule
Competition in the market Plan

Innovation and learning process also have different goals and perspective. They have four main
goals technology leadership, manufacturing learning, product focus and time to market and
each goal also have different measurement regarding this. They have a time to develop for the
next generation they introduce new products in the market and how they gain their level of
competition. There is a generic innovation process that can be applied across multiple sectors
based on models of how people learn. It can be applied to designing and developing both
hardware and software products, designing business models and services, designing
organizations and how they work, and designing the buildings and spaces in which they work
or work.
Goals Technology Manufacturing Product focus Time to market
leadership learning
Measures Time for the Process time Sale focus on New products in
development of product market
generation
Competition of new
product in market.

Furthermore, it was noted that OTD and lead-time are the most important issues in building an
effective relationship between suppliers and clients. In addition, the OTD means that a
company can fulfill the delivery commitment on the basis of the agreed time, known as the
delivery date, and if they fail to fulfill the assigned tasks on time, the efficiency will be reduced,
taking into account that the OTD process could be achieved if all the factors involved in the
process are an effective workout. Through an effective OTD process, a triadic relationship is
built and managed through a collaborative system between all supply chain actors, resulting in
a successful relationship that strengthens trust and commitment among them. In addition, such
a relationship requires that all actors share information among themselves.
OTD adopt different ways to improve the service of their organization. There are 10 different
core activities that are necessary that are necessary for adding different values, different
activities and boost up value chains.
Firstly in the organization try to work with and within your current cultural situations. Secondly
to increase the setup of an organisation also change behaviours and min-set of the employs and
management. Try to focus on the critical behaviour of the people it also helps to boost the
competition of an organisation. Also try to deploy your authentic informal leaders and don’t
let your formal leaders of all the hook. OTD organisation also link behaviours to business and
its objectives. An organisation must demonstrate its impact quickly. To increase the
performance of the company use cross-organizational methods to go viral. A company should
also align programmatic efforts with behaviours. OTD actively manage their cultural activities
on time.

⠀The success of the balanced scorecard or a similar device will depend on the clear
identification of non-financial and financial variables and their accurate and objective
measurement and linking the performance to rewards and penalties. The proponents of the
balanced scorecard claim that it aligns with strategy leading to better communication and
motivation which causes better performance. This assumption could be the single most
important reason for the popularity of the balanced scorecard. However, this may or may not
be true in practice. This is an empirical question. There is a need to document the experiences
of the balanced scorecard companies and establish the cause-effect relationship. There are
several reasons for the use of the balanced scorecard by organizations:
The balanced scorecard is a comprehensive tool to understand the target customers, their
requirements, and the performance gaps.
The balanced scorecard provides logic for focusing on creating intangible and intellectual
capital which under the traditional financial performance systems was difficult to do.
The balanced scorecard is able to articulate the strategy of growth with business excellence
which requires greater focus on non-financial initiatives.
The balanced scorecard enables employees to understand strategy and link strategic objectives
to their day-to-day operations.
The balanced scorecard facilitates performance review and feedback on a continuous basis.
During my many years in the field of logistics, I was successful in finding out that the OTD
method is one of the predominant difficulties that groups have, despite the fact that they have
weaknesses, and that most of them have not graduated in the way they do.
On time delivery ltd (OTD) Customers’ concerns tend to fall into four categories: time, quality,
performance and service, and cost. Lead time measures the time required for the company to
meet its customers’ needs. For existing products, lead time can be measured from the time the
company receives an order to the time it actually delivers the product or service to the customer.
For new products, lead time represents the time to market, or how long it takes to bring a new
product from the product definition stage to the start of shipments. Quality measures the defect
level of incoming products as perceived and measured by the customer. Quality could also
measure on-time delivery, the accuracy of the company’s delivery forecasts. The combination
of performance and service measures how the company’s products or services contribute to
creating value for its customers.
SCSA’S balanced scorecard could be adapted because it clearly shows the economic success,
stake holder fulfilment and also different changes in social and environmental changes. It
basically shows the strategic planning and management system of an organisation and it also
clarify the state according to the social and environmental changes. SCSA’S balanced
scorecard basic purpose is they trying to communicate the basic thing what is need and what
they are trying to accomplish. Company should align their work to their new internee they align
their day to day work so that company new member accomplish their task. Through balanced
scorecard company should prioritize their projects and their products. They measure and also
monitor their progress regards their strategy and planning to achieve the desired goal of the
company. Company or organization should also monitor and measure their progress according
to their balanced scorecard.

SCSA’S balanced scorecard

Financial

Financial strategic objectives in balanced score


cared shows the continuous improvement and
different activities that implemented for the
success.

Customer

Customers shows the high level strategy


context and also provide different elements
for high level strategy

Process

It measures desired level of


performance and also used to track
organizational performance
Organizational
capacity

Strategic initiatives are different projects


that are used to achieve and reach at
your target

The SCSA’s recommend that we look at the organization from four perspectives and develop
goals, measures goals and initiatives (actions) related to each of these points of view: Financial:
often renamed Stewardship or other more appropriate public sector name, this perspective
looks at organizational financial performance and the use of financial resources Customer /
Stakeholder This perspective considers organizational performance from the point of view of
the customer or other key stakeholders designed to serve by the organization. Internal process
views the performance of organizations through quality and efficiency lenses related to our
products or services or other key business processes. Organizational capacity (originally
known as Learning and Growth) views organizational performance through human capital
lenses, infrastructure, technology, culture, and other capacities that are key to performance
breakthrough.
The theory of stakeholders offers another multi-dimensional approach for measuring company
performance. Stakeholders are defined as the groups or individuals that have a stake or can
influence the performance of the organization, inside or outside the enterprise. The theory
generally identifies five groups of stakeholders for a company: three of them, shareholders,
customers and communities, define the external performance expectations of a company; the
other two, suppliers and employees, participate with the company to plan, design, implement
and deliver the products and services of the company to its customers (Atkinson et al., 1997,
p. 27). Management control scholars who use stakeholder theory to measure performance
believe that "performance measurement design begins with stakeholders" (Neely and Adams,
2002). The performance measurement approach of stakeholders begins by defining goals for
what each stakeholder group expects from the corporation and how each group contributes to
the corporation's success. Once the expectations of stakeholders or, furthermore, implicit and
explicit contracts between the stakeholders and the corporation have been defined, the
corporation will then define a strategy to fulfill these expectations and the contracts. Therefore,
while the Balanced Scorecard approach begins with strategy and then identifies the inter-
relationships and goals for different stakeholders, the stakeholder approach begins with
stakeholder goals and defines a strategy to meet shareholder expectations in a second step.
Strategy is a matter of choice. Companies are unable to meet all their possible customers '
expectations. Wal-Mart meets the needs of one customer segment (price-sensitive), Nordstrom
meets the needs of another segment (customer relationships and solutions), and Armani and
Ferragamo meet the expectations of a third segment (product-leading fashion, fabric and
fitness; price-insensitive). Similarly, Southwest Airlines customers have different performance
expectations than the British Airways flying business and first-class customers. Strategy
determines which customers the company has chosen to serve and the value proposition it
offers to win the customer segments ' loyalty. Strategy determination must take place before
customer satisfaction and loyalty measures are defined. Otherwise, following stakeholder
theorists ' recommendations, the company would try to meet the expectations of all the existing
and potential customers it could serve, stuck "in the middle," as Michael Porter described, with
both a high cost and a non-differentiated approach, a strategy failure recipe.
Scsa’s have different key indicators and performance of an organization. Key performance
indicator of a company will be tracked over time. They determine the actual and targeted gap
of an organization. They also determine their effectiveness and their operational efficiency to
generally balance the position and function of an organization. There are different good key
performance indicator that are necessary for an organization. These performance indicators are
discussed below.
1: they provide a basic objective to see that either the strategy is working or not.
2: they offer a comparison and observe the performance of a company over time.
3: good performance indicator do focus on the employee’s attention that is a major factor to
focus on the success.
4: the kpi shows all the accomplishment that is performed
5: key performance indicator provide a common language for communication.
6: they also reduced a tangible uncertainty.
SCSA’s provide different objectives to shows the continuous improvement. There are different
objectives that an organization is used to achieve their goals. They should increase their
revenue, they also improve their customer and stake holder experiences and with the help of
this agenda they can also improve the cost-effectiveness of a company programme.
However, due to the effective implementation of the system, there are still OTD hits caused,
and thus the OTD's main goal cannot be achieved. There is still negligence, according to the
interviewer, to use the system effectively by the staff and this is due to a commitment and
skills. In addition, bad performance is frequently observed in the warehouse department they
were delivered by the supplier but left aside by the employees without processing the GRN,
causing many materials to be received without formal action. Other departments involved, such
as Purchasing and Finance, are therefore not aware of how long the materials are waiting in the
receiving area, and that is why the OTD is usually hit. There are also some issues recently
observed in the outbound delivery by the warehouse that the reserved items are not prepared in
a timely manner for deliveries, which makes it difficult to ensure on-time deliveries and
therefore displays deliveries. In order to enable the system to take care of the OTD
measurements, the warehouse must monitor the reservation date created by the users to load
the items on time or take any corrective measures necessary to ensure that goods can be
delivered on schedule.
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