Riordan Manufacturing Outsourcing Plan
Riordan Manufacturing (RM) is an established global plastics producer, which employees 550 individuals and their projected annual earnings are $46 million. RM has production divided among three plants. RM’s mission is to focus on achieving and maintaining profit that ensures that the financial and human capital is available to sustain growth. In week three, team C established four potential outsourcing options. Of those four potentials, RM stands to gain the most potential from outsourcing customer relationship management (CRM). This could cover service, sales, and marketing. Services that will be provided include the call center ...view middle of the document...
The timeframe is three months for vendor acquisition and implementation and two months for training.
* Outsourcing CRM would reduce supportive operational costs and facility costs to house extra people to support these services.
Analysis of the outsourcing plan will be measured by three performance measures: customer service, RM’s goal is to focus on achieving and maintaining reasonable profitability to ensure that the financial and human capital is available for sustained growth. The following goals are to be examined and restructured every six months:
1. $50 million operating income
2. 20% market share
3. Strengthen position at top 20 large accounts
4. Improve Employee Satisfaction by 15%
5. Lean manufacturing processes to attain a 10% reduction operating expenses
6. Lay the ground work for significant share and profit gain in 2007.
When one looks at the strategic objectives one must look at the following: customer and market share; delight customers and secure top 20 large accounts; grow governmental market by 15%.
Performance measure one: Customer satisfaction
RM stands to gain the most potential from outsourcing customer relationship management (CRM). This could cover service, sales, and marketing. Services that will be provided include, call center support, field support management, e-Service, campaign management, sales forecasting, and account management and pipeline management. Customer service is an essential function in any organization and is measured by customer satisfaction reports. Customer service consists of taking care of the customer’s needs and being available to answer their questions. Channels the customer can use to access the customer support team is: online, on the phone, e-mail, or direct contact with their customer services account representative. Most customer service activities can be outsourced and not have any negative impact on the quality of service. By outsourcing the customer service call center and customer service webpage support team, Riordan will save money on supporting those activities. Customer service activities would be a prominent way outsources and reduces costs. Furthermore, by having adequate resources such as email, and other online services, the company can reduce costs on paying an expensive long distance phone bills. Performance measurement will be conducted with customer satisfaction surveys when the outsourced service is utilized. In addition, the number of accounts maintained and secured will measure performance.
Performance measure two: Marketing
Marketing performance is primarily the performance you provide for advertising your company. Most companies compensate their employees well for their marketing performance. Most employees are paid a commission for each sale they close. Those employees have to excel in getting new accounts and service to their company. RM will gather a skilled and qualified marketing team to market...