Business process optimization: the core tool for B-end product managers to get product planning

To make a good B-end product, we must take the initiative to take a step forward, take the initiative to help the business find problems, and propose systematic solutions. And this is the only way for the majority of B-end product people to continue to be promoted and raise their salaries under the current Internet winter.

In the previous article, I gave you an introduction to business modeling, and in this article, we will talk about how to optimize business processes in detail around the point of business processes.

We all know that in today's rapidly changing business environment, internal process optimization has become a key means for enterprises to improve efficiency, reduce costs and enhance competitiveness. As a B-end product person, how to help enterprises achieve continuous improvement and value maximization of business processes can be said to be one of the necessary thinking of product people.

Why is process optimization important?

Process optimization in a company not only improves the efficiency of the business, but also improves product quality, customer satisfaction, and ultimately the continued development and success of the business. As a management team, we also hope that by optimizing the process, the business can better adapt to market changes, quickly respond to customer needs, and achieve the optimal allocation of resources.

For example, in one of our companies, to manage the company's product filing process, the company's business development expenditure may be completed by the same person, whether it is the introduction of new products or the entry of product files in the system, then this role is likely to be procurement.

However, with the continuous increase of the company's business volume, it is no longer realistic for a role to purchase and complete the introduction of new products at the same time, negotiate with suppliers, and then enter commodity information into the system.

And more importantly, as a procurement, you may be better at negotiating with suppliers, and for the presentation of goods in the system, such as refining beautiful and moving copy. Or draw a good-looking picture of the product, which is not what purchasing is good at.

At this time, the process optimization we need to do is to divide this position into two, divided into procurement and commodity filing specialists to complete different tasks, which is actually a process optimization.

It can be seen that the fundamental reason why many internal systems are not easy to use is not that there is a problem with the system design, but that the product manager does not help the business to optimize the internal business process at the beginning of the design.

01 Basic steps for process optimization

When it comes to specific process optimization, our steps can be carried out according to the following template:

(1) Clarify the optimization goal

Before we start process optimization, we first need to define the goal of optimization. These goals may include reducing process time, reducing costs, improving quality, increasing flexibility, and more. Defining goals is useful for subsequent process analysis and improvement measures.

(2) Map existing processes

Process mapping technology describes each step of the existing process in detail. This helps identify bottlenecks, redundancies, and potential areas of improvement in the process.

(3) Analyze process data

Collect and analyze process-related data such as time, cost, resource usage, etc. Data can help us quantify the current state of our processes and inform improvements.

(4) Identify opportunities for improvement

Identify opportunities for improvement in the process based on the results of process mapping and data analysis. This mainly includes reducing waiting times, eliminating unnecessary steps, streamlining the decision-making process, etc.

(5) Design optimization scheme

Design specific optimization plans for identified improvement opportunities. This includes redesigning processes, introducing new technologies or tools, changing the way work is done, and more.

(6) Implement optimization measures

Put optimization into action. During the implementation process, ensure that all relevant personnel understand the content of the changes and provide the necessary training and support.

(7) Monitoring and evaluation

Once the optimization measures have been implemented, the performance of the process is continuously monitored and the effectiveness of the optimization is evaluated. Based on feedback and evaluation results, further adjustments and refinements are made to the process.

We can see that process optimization is actually a systematic project, which requires a series of actions such as comprehensive analysis of existing processes, identification of improvement opportunities, and design and implementation of effective optimization plans.

Let's take a look at a detailed case:

02 Practical cases

background

"Swift Logistics" is a company that provides third-party logistics services, and with the rapid expansion of its business, its WMS system is facing problems such as inaccurate inventory, inefficient warehousing and overstocking, etc. These issues have led to delays in order processing and a drop in customer satisfaction.

Optimize your goals

• Improve the accuracy of inventory records.
• Reduce the time spent on inbound and outbound operations.
• Reduce inventory overstock and improve inventory turnover.

Mapping of existing processes

Investigate each step from supplier delivery to inventory management in detail as follows:

1. Inventory entry: After the arrival of new goods, warehouse employees manually enter inventory information.
2. Inventory storage: Goods are stored in designated warehouse locations according to classification.
3. Order processing: Based on the customer order, the warehouse employee picks the goods and prepares them for shipment.
4. Outbound confirmation: When the goods are out of the warehouse, the system updates the inventory information.
5. Inventory counting: Conduct inventory counts on a regular basis and check system records with actual inventory.

data analysis

Complete the collection of three key metrics, note that the data collection here is a foreshadowing of our personal achievements as we go live with the new solution in the future.

• Inventory record error rate and inventory discrepancies.
• The average time for inbound and outbound operations.
• Inventory overstock and proportion of slow-moving items.

Identify opportunities for improvement

• There is human error in the inventory entry process.
• The warehouse layout is not reasonable, resulting in the picking path not being optimized.
• Inventory management systems lack effective inventory forecasting and analysis tools.

Design optimization schemes

• Automated inventory entry: Barcode technology is introduced to achieve automatic inventory information entry.
• Optimize the warehouse layout: Re-plan the warehouse layout and use the ABC classification method to optimize the storage location of goods.
• Introducing inventory forecasting tools: Optimize inventory levels by using historical data and market trends for inventory forecasting.

Implement optimization measures

• Technology upgrade: Deployment of automated identification equipment: barcode scanners.
• Employee training: Train warehouse employees on the operation of new technologies.
• System adjustment: Adjust the WMS system, integrate inventory forecasting tools and optimized warehouse layout information, as well as barcode recognition and warehousing management [it can be seen that we have helped the business dig out the needs on the system].

Monitoring & Evaluation

• Effect evaluation: Evaluate the optimization effect by comparing the accuracy of inventory records, inbound and outbound time, and inventory backlog before and after optimization.
• Continuous improvement: Based on the results of the assessment, the process is continuously adjusted and optimized.

Optimize performance

After a series of process optimization measures, the WMS system of "Swift Logistics" has achieved significant improvements:

• The accuracy of inventory records has increased by more than 95%.
• Inbound and outbound operation time has been reduced by 30%.
• The inventory backlog rate has been reduced by 40% and the inventory turnover rate has been improved.

Through the process optimization of the "Swift Logistics" WMS system, we can see that the introduction of automation technology, the optimization of warehouse layout and the use of inventory forecasting tools are the key to improving the efficiency of inventory management. And as a product manager, it is more important to dig out the optimization needs of the product for yourself.

So, if we are a high-level product and need to develop a product plan for our own product every year, then according to this business process optimization principle, the product plan we propose is absolutely in line with the actual content of the business. And this helped us to confirm our product direction on another level.

03 Finally

After talking about business process optimization, we can see that the core content of this work is to help the business and identify what problems exist in the current business process. And use the perspective of the product to propose solutions, and finally use the system to precipitate the new rules of the business process.

This article is written by Everyone is a product manager Author [Sanye Teahouse], WeChat public account: [Sanye Teahouse], original/authorized Published in Everyone is a product manager, without permission, it is forbidden to reprint.

Image from Unsplash, based on the CC0 license.