APM syllabus
Past Exam Question 5 / 5
Answer Headings
(These are the aims)
Strategic focus on costs
Being best delivery company
Innovation
Engaged and committed workforce
Maximisation of shareholder value
Strategic Focus On Costs
Ways to Reduce Costs
(1 mark for each)
The date and time of delivery to the end user is now undertaken automatically and accurately - saving recording costs and costs of mistakes
Accuracy will also save the cost of the damage to Pattack’s relationship with the retailer and may help ensure future business
Strategic Focus on Costs (Continued)
2 more cost savings?
(1 mark each)
The drivers are not required to return to Pattack’s premises which will save the costs of the drivers’ time, vehicle fuel and associated vehicles costs
The same drivers who collect the parcels from the distributors will deliver the parcels to the end users.
This will save cost as there is no need to employ two different types of driver for two different purposes.
The process has merged the collection and delivery functions and therefore there is only a requirement for one type of driver.
Answer Headings so far...
Strategic Focus on Costs
Being Best Delivery Company
Best Delivery Company
How the new system will help with this goal...
(1 mark each)
The redesign of the process to tag the parcel at source will also help Pattack achieve its aim of being the best delivery company in Geeland as it will enable route planning to be undertaken on a more pro-active basis.
Routes can now be planned as orders are communicated from retailers instead of waiting until all parcels have been brought back to Pattack’s premises.
This is likely to enhance retailer satisfaction with the service Pattack is offering.
Electronic vehicle tagging will enable the delivery manager to respond to any requests from the retailers concerning delivery.
Pattack can thereby demonstrate that it is reacting to retailer demands for real time information regarding delivery and can show that it is putting the overall retailer experience at the centre of its process redesign.
Answer Headings so far...
Strategic Focus on Costs
Being Best Delivery Company
Innovation
Answer Headings so far...
Strategic Focus on Costs
Being Best Delivery Company
Innovation
Engaged and committed workforce
Engaged and committed workforce - after BPR?
Bar-coding will reduce workload (no need now for both collection and delivery drivers) and so some will be made redundant / feel under threat
The remaining drivers, for example, should have schedules which are better planned and more efficient than the current ones, which should enhance their trust and faith both in the organisation generally and in the redesigned processes which has been initiated specifically.
The delivery manager should also feel that he or she has more control over the entire process if he or she is able to see where delivery vehicles are at any given moment.
Answer Headings so far...
Strategic Focus on Costs
Being Best Delivery Company
Innovation
Engaged and committed workforce
Maximisation of shareholder value
It is not clear from the scenario if Pattack has undertaken or will undertake a net present value calculation for the BPR proposal.
This would allow Pattack to make a more objective judgement as to whether the proposal is adding to shareholder value.
However, Pattack’s aim is to maximise shareholder value by undertaking the strategies outlined above. It is very unlikely that the BPR proposal will enhance strategic performance in all those areas and not contribute to the maximisation of shareholder value.
Overall, therefore, it is extremely likely that the BPR proposal will help with Pattack’s aim of maximising shareholder value.