Our Solutions

Process Performance - Providing Real Cost Savings

One recent example of Process Performance's ability to execute high value improvements to business processes was the Peco project completed in 2006.

More than just incremental improvements, the work that Process Performance undertakes has strategic impact upon the business. These improvements to Peco’s business processes enabled a redistribution of funds within the organisation allowing the strategic goals to be achieved.

Peco is a manufacturer of mobile solutions for the leisure and motor industries with a network of more than one thousand retail resellers across Australia and New Zealand.  When Process Performance started the project with Peco we were responding to their needs to improve management of their low volume resellers. These low volume resellers purchased from Peco less than ten items per year.

Steps to Success

1. Process Audit

The original sales process was modelled and then an average cost of selling was calculated based on the activities involved in the sale process. This did not include marketing, only the activities from receiving the fax or phone order to the order being received by the warehouse for packing.  The average cost to Peco was $125.00 per transaction. There were on average more than 3,000 of these transactions per year.

2. Process Redesign

Process Performance redesigned the sales process utilising the newly implemented ERP system and Peco's current website. Process Performance ensured that these systems were integrated, where previously they had not been and utilised the new functionality available in their enterprise system.

3. Process Benefits Realization

Once Process Performance had completed improvements to the Peco sales process, the cost of each sale process was reduced dramatically to approximately $5.00 per transaction.

This project delivered a very real saving of $360,000 per year.