Management: Fulfillment satisfaction

Changes in corporate infrastructure must begin at the top

 

My wife and I had the chance recently to see fulfillment at its absolute worst, and the people involved trying to perform at their absolute best.

We bought three major replacement appliances – a microwave, an electric oven and a dishwasher – all in stock, from the same local mass merchandiser.

They were to be delivered about 10 days later, to allow for an ongoing kitchen re-tiling project. The day before they were supposed to arrive, we were told that due to redundant scheduling, delivery would be postponed for another five days.

I pointed out that this was totally unacceptable because the old appliances had been removed and we had a house full of guests arriving within the next few days.

Calls were made to four different fulfillment providers in three other states to remedy the delivery problem. The delivery date changed by only a day, and the appliances arrived on time. Now the fun begins.

What went wrong

1. The delivery fulfillment people were responsible for hard-wiring the power cord on the oven but forgot to install it. They weren’t responsible for installing the dishwasher or microwave.
2. It took another day to find an electrical contractor to connect the oven.
3. The people who were supposed to install the dishwasher and microwave were no-shows and claimed they called us but no one answered. There were no calls from them on our caller I.D.
4. A day later, an installer showed up from a neighboring state, only to point out that the microwave unit was severely damaged, presumably dropped en route, and unusable. We had to make another trip to the store to select a comparable microwave because the model we originally ordered was out of stock at that store and at all other stores in the Milwaukee area.
5. The installer from the adjoining state returned later in the day, on his way home, to install the microwave. But it, too, had to be returned because it was a poor match with the other appliances.

The fulfillment puzzle

There are lessons to be learned here for any business that considers fulfillment important for customer satisfaction.

1. Starting in sales, data processing terminals must be equipped with sufficient information to accurately determine the complete fulfillment process at the time the products are sold.
2. It’s inefficient to use the services of different fulfillment vendors, located in different states, who don’t communicate with each other except by phone.
3. Don’t try to solve fulfillment problems by committee. Someone should have the title of Fulfillment Manager and manage a fulfillment team remotely.
4. Independent contractors should be required to meet fulfillment expectations without exception. Any schedule changes should only be approved by the Fulfillment Manager.

It starts at the top

We all know that any changes in corporate infrastructure have to begin at the top. 

Have you seen the TV show “Undercover Boss”? Most of the participating CEOs are dumbfounded and shocked when they find out how the work of their organizations actually gets done. So what makes for effective infrastructure?

1. Clean lines of communications between corporate and all operating entities. When a fulfillment problem develops, for example, don’t tell someone who’s trying to solve the problem that “Jack is out sick today, and he was handling that one.”
2. Every action begets another action. Almost every sophisticated data terminal transfer system has a real-time archive capability. There’s no excuse for not documenting all transactions relevant to an infrastructure problem.
3. Communication between two different companies is paramount. Working with a partner company that’s located near you is preferred because you can actually reach out and touch someone. But if that isn’t possible, then use technology like GotoMeeting, Skype or any other program that allows videoconferencing or webinars.
4. Finally, reduce errors and waste by having procedures that are followed consistently, and have a process for measuring how well they’re followed.

The people

I have to admit that the store employees were very concerned about my problem and tried to help, but they had poor tools to work with. Their computer and data networks were simply too slow, or unable to connect with the delivery people.

Fulfillment companies seem to have no real vested interest in the retailer. They see themselves in the middle and don’t have managers to help them solve problems. I doubt the motivation is there either.

I’ll bet many of you have had problems similar to mine. Here’s the important message, particularly in this new economy: If you were the customer, would you want to shop at that store again?

Until next month, put fulfillment satisfaction on your management agenda.