Fast Track Couriers

Business Plan

Prepared:

Krishna Chaitanya Gampa

Page 1 of 35
Business Plan Summary
The organization has identified an opportunity to expand their operations in to regional
areas of NSW in order to get new clients and improve revenues. The business plan is to
install automatic lifts in trucks so that only one truck driver would be necessary for driving
and delivering the goods instead of two, and new trucks could be brought which would be
operate on regional routes with remaining drivers. Thereby expanding in to new routes
without the need to hire new drivers.

The Business
Business name: Fast track couriers

Business structure: Family owned

Business location: Sydney, NSW

Date established: 2004

Business owner(s): Three members of a family

Relevant owner experience: Owners in this business from inception of the business

Products/services: Delivering packages of small to medium sized businesses

The Market
Target market: Small to medium sized businesses in NSW region

Marketing strategy: Building personal relations with the owners based on good reputation.
Medium of communication used include direct sales, telephone, internet listings and mail-
outs. They also have a program of telephone follow-up to ensure customers’ ongoing
satisfaction with the business

The Future
The organisation’s strategic goal is to grow the business and increase business profits over
the next three years by expanding delivery routes to include regional NSW.

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The Finances

Annual sales

Current sales Estimated sales (Yr 1)

$17 million $22 million

Annual net profit

Current net profit Estimated net profit

$1.9 million $3.2 million

Increased costs

Loan repayments Operating costs (fuel,

servicing, etc.)

+$200,000 per annum +$2.2 million

Administrative costs Labour costs

+$100,000 Nil

Page 3 of 35
Organisation chart

Management
Team (owners)

Managing
Director

Human
Logistics Administration Finance
Resources Sales Manager
Manager Officer Manager
Officer

Truck Drivers
Accounts Clerk
x 20

Management & ownership

Key personnel in Fast track couriers

Job Title Responsibilities

Managing responsible for daily operational management decisions
Director
Logistics Manager responsible for the scheduling of the trucks and drivers
Truck drivers Responsible for picking up and delivering the couriers
Office support responsible for administration, accounts, human resources and sales.
employees

Training programs

 Training for regular drivers to make sure they are being alert and update skills when
any new technology is introduced
 Training for managers to improve their skills are organizing and leadership

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Skill retention strategies

1. Regular trainings
2. Practicing of the skills
3. Providing mentorship to new employees

Product/Service Description
Couriers Fast Track courier delivers packages of small-to-medium sized
organizations all over the metropolitan area of Sydney.

Market position:

Fast track couriers has built a solid reputation over the past 12 years as a reliable and
value for money logistics partners for many local organizations. It has an admirable 87%
retention rate for existing customers. However, it has lost some business as it did not
provide service for delivering to regional areas.

Anticipated demand:

Its hoped that with expansion of operations in to regional areas of NSW, the clients
who want their packages to get delivered in these regional routes would tie up with fast
track couriers.

Pricing strategy:

Fast track couriers strives to provide value for money services and as it services small to
medium sized companies, it does not price its services at a premium but are at an affordable
rate

Growth potential:

If Fast track couriers starts operations in to regional areas of NSW in 12 months, the sales
would increase by 40% in the next three years

Page 5 of 35
Risk management
Risk Likelihood Impact Strategy
Truck drivers unwilling High High Should convince truck drivers through
to participate in the incentives such as increase in wages
change because only one truck driver is necessary.
If some truck drivers are still unwilling,
they could be replaced by new recruits
who are willing to work as single member
team
Increased competition Medium Medium Fast track couriers should rely on its brand
name, reliability and relationships with
clients. Noting much can be done to
prevent competition, so this risk should be
accepted and should focus on its
strengths.

Delivery drone Low Low Its unlikely that drone deliveries would be
technologies permitted any time soon and also drones
can only deliver light weight items, so this
will not be a big problem. Hence, they
should ignore this risk.
Government High medium There are different new government
regulations regulations when expanding to other
regions, which should be complied with.
Legal experts can help comply with these.

Legal considerations:

There are many legal considerations like:

1. Drivers licences to drive trucks

2. Work and safety laws
3. Permits to drive to different regional localities
4. Other administrative related laws

Page 6 of 35
Operations
Productivity Targets

1. Utilization of the new trucks at least 90% of their capacity

2. Idle hours for the trucks should be less than 10%

Resources Required

Following is the list of resources required to ensure the above targets are meet:

1. $600,000 for buying 10 new trucks with automatic lifts installed

2. $100,000 for installing automatic lifts on to the existing 10 trucks

3. Expenses for training truck drivers

4. Incentives for truck drivers to cooperate with the new plan

5. Advertisement expenditure for informing clients about the expansion of operations

The Market

What does the market mean in terms of Business plan? Explain

Your customers

Key customers:

 Clients in Sydney who want their packages delivered in to rural or regional areas
 Clients in rural or regional areas who want to get their packages delivered to other
areas

Customer management: explain the market target for the customer management?

Fast track couriers already has a strong relationship because of its track record with
its existing clients in Sydney metropolitan area. It now has to build relations with the new
clients who operate in the regional areas of NSW. Fast track couriers could retain its
retention rate by continuing its customer follow up policy.

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S.W.O.T. analysis

Strengths Weaknesses
1. Brand image of reliability and value for 1. Inexperience of drivers to operate
money automatic lifts
2. Financials are strong and so Fast track 2. Family run business might not cope up
couriers can expand without much with expansion of operations
pressure on financials

Opportunities Threats
1. Some clients are willing to provide 1. Drivers may not cooperate
business if operations are expanded to 2. Competition from existing delivery
regional areas organizations

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The Future

Goals/objectives

The organisation’s strategic goal is to grow the business and increase business profits over
the next three years by expanding delivery routes to include regional NSW.

1. Starting operations in the new regional routes, expanding gradually

2. Comply with all regional legislations before expansion
3. Inform clients about start of new operations

Action plan

Milestone Date of Person responsible

expected
completion
Purchase on new delivery trucks 1st October Finance manager
Adding automated lift gates to all existing trucks 07th October Logistics manager
Give training to truck drivers on using the lifts 14th October Human resources
manager
Advertisements to inform clients about expansion By 20th Sales manager
of operations of Fast track couriers in to new areas october

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The Finances

Key objectives & financial review

Financial objectives

1. Increase sales by 40% in the next three years

2. Increase profits of by at least 5% over the previous years

Finance required

Borrow $600,000 from the bank to finance the purchase of 10 new trucks with automated
lift gates. Use internal resources of $100,000 to add automated lift gates to existing 10
trucks.

Profit and loss forecast

Details Amount
Sales (Current) $17000000
Sales (Future increase) $22000000
Operating costs (Increased) $2200000
Administrative costs (Increased) $100000
Net Profit (Current) $1900000
Net Profit (Future increase) $3200000

Conclusion:

There is a clear opportunity for Fast track couriers to expand their operations in to
regional areas. This will help it increase its sales by 40% in the next three years. It needs to
invest in trucks, training and giving incentives to truck drivers which will achieve its strategic
objective of sustainable expansion.

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Communication Strategy

Business Plan Development Process

Following steps were undertaken to develop the business plan for ‘Fast Track
Couriers’:

1. First we have studied the Fast track courier’s organization structure,

strategic objectives and finances
2.Second we understood the opportunity that exists for Fast track couriers to
expand
3. Thirdly, we have developed a strategy to exploit this opportunity
4. Fourthly, we analysed any risks or obstacles to the strategy and created a
risk management policy
5. Lastly, we have drawn the financial resources that we would be needing and
the financial projections of the organization

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 Communication Plan

Who What When How Understanding

Directors Implementation Within first one Reports, Regular

(Owners)/ due dates month of emails and feedback
Managing approval and on meetings
Financial meetings
Director an ongoing basis
Objectives

Roles and
responsibilities

Budgeting

Logistics Statistics about Every day report Reports Discussion with

Manager capacity through directors
utilization of email weekly
the fleet and
any other
logistical
issues

Human Training needs Within 1st week Reports, meetings with

Resources of staff and of project emails and the truck
Manager convincing of approval and meetings drivers for
truck drivers whenever need negotiation.
arises Monthly
meeting with
the directors.

Truck Any issues Every day basis Orally GPS data,

Drivers with the through meeting
customers, meetings between
reports based managers and
on GPS and truck drivers

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 any other issue
that they face

Sales Details about Weekly reports Sales report Sales data,

Manager sales that through client data and
happened, no: mails and at marketing data
new clients meetings
added and
how media
campaigning
activities going
on

Financial Financial Within first two Financial Business plan

Manager details about (2) weeks of reports consultation
revenue, profit, implementation through and
loss, damages mails and implementation
clarification meeting
in meetings

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 Report – Quality Training Business Plan Analysis

Student Name Krishna Chaitanya Gampa

Unit Name Develop and implement a business plan -

BSBMGT617

Term 3, 2019

Date 11/08/2019

Executive Summary

Quality training is a registered training organization that is giving training services to students.
It has created a business plan report to grow its profits and expand its operations in coming years. It
has created a solid business plan and has covered almost all sections of a good business plan.
However, this business plan could be improved upon by adding much more information through
analysis.

Main Contents

1. Business Plan Strengths

Following are some of the strengths of the proposed business plan:

 The business plan identifies the objectives of the business and prepares a
plan to achieve them
 It has mentioned clear financial projections that could be achieved by
implementing this business plan
 It has identified the various external actors that could affect the operations of
the quality training like the government, industry bodies, competitors and
mentioned them in the report
 It has done the SWOT analysis comprehensively covering all topics

Page 14
2. Business Plan Weaknesses

Following are some of the weaknesses of the proposed business plan:

 The business plan lacks comprehensive data on the competitors it would be

facing and the general industry averages
 I think that the business does not take the perspectives of all stakeholders like
those of the trainees and the trainers as it did not consult all stakeholders
before creating this business plan
 It did not include the financial performance of the business of previous year. A
business plan needs to provide the past financial details so that we can
compare them with the future financial performance

3. Layout and structure analysis

It mostly followed the textbook structure and layout of a business plan. However, it
lacked to provide some information.

4. Quality of Information analysis

As it did not provide much data about its competitors, industry averages or its
past financial data, I think that the quality of the information provided is rather
lacking.

5. Relevance of Information analysis

Lack of providing enough data has led to inadequate analysis of the information

What is the relevance of SWOT with business plan?

A SWOT analysis is very important for a business plan as it comprehensively lays out
the strengths, weaknesses, opportunities and threats that an organization is facing.
This allows is to solidify the strengths, reduce the weaknesses, grab the opportunities
and strategize to deal with the threats.

In the SWOT analysis, though it provided comprehensive analysis of threats and

opportunities, it lacked the same depth in terms of strengths and weaknesses.

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6. Analysis of research regarding competitive market conditions

The business plan has identified three categories of competitors like in-house
training departments/personnel, public training providers (TAFE) and private
registered training organizations.

It then analysed the characteristics of these categories of competitors and has

identified the local private RTO’s as the main competitors. However the research
about the competitors is not comprehensive as they lack solid data about the
market size, opportunity are or any other such metrics to compare Quality training
with.

7. Analysis of information regarding likely success of the business

There is not much competitor or financial data provided to gauge whether the
business would be a success or not. However, Quality training is confident that it
would be successful in creating and expanding a niche in the chosen market
segment.

8. Performance measures analysis

Quality training does not provide any performance measures for doing analysis

9. Relevance of document setup as per stakeholders needs

The business plan lacks comprehensive understanding from the perspective of all
stakeholders.

Conclusion

Even though Quality training provides a comprehensive business plan where it

identifies the competitors, understands the market and the various threats and
opportunities for it to succeed. It lacks the data regarding its financial status,
competitors and the wider economic data and data about market to comprehensively
gauge the conditions for quality training’s success. Quality training needs to do
quantitative analysis so that it can be ore confident about its business plan.

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Task 2: Monitor Performance

Key Performance Objectives – Fast Track Couriers

1. Increase sales by 40% in the next three years and deliver a net profit of $3.2
million per annum
2. Increase commercial delivery service area to regional NSW with next 12 months
3. Implement one truck driver per truck in all courier services within next 3 months
4. Implement automated lift gates within one month on all current trucks within a
budget of $10000 per truck
5. Purchase and implement ten new trucks for various courier delivery services
within next 6 months within a budget of $60000 per truck.

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 Performance Objective Analysis (1)

Performance Objective Capturing Data Ways of Measurement

1. Sales Reports 1. Sales targets
Increase sales by 40% in 2. Operation expense 2. Department budgets
the next three years and reports 3. Variance analysis
deliver a net profit of $3.2 3. Profit and loss
million per annum statements

Benchmarks

1. Increase in sales by at least 30% in the first year of new operation

2. Increase customer engagement through increase in marketing activities. Within

6 months at least 90% the important customer base in Sydney should know about
the expanded operations about Fast track couriers.

Tolerance Levels

1. Sales growth rate tolerance level will be between 11 to 15%. Below 10%
appropriate performance management initiatives will be implemented.
2. Customer engagement tolerance level will be between 10 to 20%. Below 10%
appropriate performance management initiatives will be implemented

Reporting Timeframe
1. Sales report is generated monthly and reviewed
2. Customer engagement report along with report on marketing activities would
be generated every month to be reviewed

Key Stakeholders

1. Management team
2. Managing director
3. All 5 department heads

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 Corrective Actions Plan

Failure/Variance Way of Reporting To Whom When

Less increase in Sales Report Managing director Within one week

sales

Net profit below the Profit and loss Management Within one week
tolerance levels report Team

Managing Director

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 Performance Objective Analysis (2)

Performance Objective Capturing Data Ways of Measurement

1. Reports from 1. Internal reports
Increase commercial logistics and sales about the number
delivery service area to manager of areas the
regional NSW with next operations have
12 months. been expanded to

Benchmarks

1. Converting at least 50% leads into sales for all popular regional destinations
2. The operations should be expanded to at least 50% of regional areas within 6
months’ time

Tolerance Levels

1. Sales target of 900000 to 1.1 million

2. 90% to 95% areas to be covered in 12 months

Reporting Timeframe

1. Monthly report by Sales manager

2. Monthly report from logistics manager

Key Stakeholders

1. Managing director
2. Sales manager
3. Marketing manager
4. Logistic manager

Corrective Actions Plan

Failure/Variance Way of Reporting To Whom When

Sales target below Sales report Managing director Within one week
the tolerance levels

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% of leads Marketing report Managing director Within one week
converted below
the tolerance levels and marketing
director

Number of new Logistics report Managing director Within two weeks

destinations and
offered below 5
Logistics manager

Performance Objective Analysis (3)

Performance Objective Capturing Data Ways of Measurement

1. Data from logistics 1. Counting of trucks
Implement one truck manager with single driver
driver per truck in all
courier services within
next 3 months.

Benchmarks

1. Implement the new policy ASAP with affective change management and
implementation action plan.

Tolerance Levels

1. There will be Zero tolerance levels for non-implementation of policy within 3

months.

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Reporting Timeframe

1. Courier’s deliveries report will be generated and reviewed on a monthly basis.

Key Stakeholders

1. Management team
2. Managing director
3. Human resources manager

Corrective Actions Plan

Failure/Variance Way of Reporting To Whom When

Non- Couriers deliveries Managing director Within one week

implementation of report
new policy within 3 Logistics Manager
months

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 Performance Objective Analysis (4)

Performance Objective Capturing Data Ways of Measurement

1. Operations data 1. Report from
Implement automatic lift operations manager
gates within one month on
all current trucks within a
budget of $10,000 per truck

Benchmarks
1. Should operate within the budget of automatic lift gates
2. All trucks need to be ready by the required time frame

Tolerance Levels
1. The trucks should be fitted with in a budget range of $9500 to $10500

Reporting Timeframe

1. Implementation and Department budget and variance analysis reports to be reviewed

on a monthly basis.

Key Stakeholders

1. Managing Director
2. Logistics Manager
3. Humana Resources officer
4. Financial Manager

Corrective Actions Plan

Failure/Variance Way of Reporting To Whom When

Truck is not fitted Logistics report Managing director Within one weeks
within a month
Logistics manager

Implementation Financial report Managing director Within one week

budget per truck is
over $12000 Financial manager

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Page 24
 Performance Objective Analysis (5)

Performance Objective Capturing Data Ways of Measurement

1. No:of new trucks 1. Physical counting of
Purchase and implement ten bought new trucks
new trucks for various
courier delivery services
within next 6 months within
a budget of $60000 per
truck

Benchmarks

1. Buy at least one truck per month

Tolerance Levels

1. There is zero tolerance as 10 new trucks need to be bought within 6 months

2. The cost of a single truck needs to be between $55000 to $65000

Reporting Timeframe

1. Implementation and Department budget and variance analysis reports to be reviewed

on a quarterly basis.

Key Stakeholders

1.Managing director

2.sales and marketing manger

3.Logistic manager

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 Corrective Actions Plan

Failure/Variance Way of Reporting To Whom When

New trucks not ready Logistics report Logistics manager Within one month
in 8 months

Implementation Administrative Administration Within 1 week

budget per truck is report manager
over $65000

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Assessment Task 3: Respond to performance data

Report – B&A Performance Data Analysis

Student Name Krishna Chaitanya Gampa

Unit Name Develop and implement a business plan - BSBMGT617

Term 3, 2019

Date 11/08/2019

Executive Summary

B&A is a toy warehouse company which is trying to make its operations efficient
through several changes to its processes and procedures. It could succeed in
achieving efficiency through some processes while it could not do so in some cases.

Main Contents

Corrective Action Analysis

Area Type Required corrective action

1. Corrective
Time 2. Preventive 1.Providing process training to all staffs
3. Interim

2.Waste of delivery time

4. Interview customer inspection

1. Corrective 1. Warehouse extension to facilitate better layout

Cost 2. Preventive

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 3. Adaptive 2. Agreement to get temporary employees in case
of any shortage of workers
3. Simplify process for packaging and distribution
1. Corrective 1. Better training to workers
Quality 2. Corrective 2. Simplification of packaging and distribution
3. Adaptive process

1. Corrective 1. Document KRAs and KRIs of employees

Production 2. Preventive 2. Reduce absenteeism of employees
3. Adaptive 3. Improve employee engagement to motivate
employees

Performance Analysis

Objectives Performance analysis Non-performing areas

Reduce order Current order Staff attendance at work lower

processing time to 72 processing time is by 0.9% in comparison to target
minutes per order higher by 8 minutes per
order

Lower staff attendance to

training sessions

Reduce order Currently it takes $20 Hiring of temporary staff is

processing cost to more on an average to increasing the processing cost.
$180 per order process an order If the number of orders
processed increases, the
average processing cost for one
product decreases

Reduce errors in Currently the error rate Warehouse supervisors are all
orders processed to is a very high of 10% junior and so they are not able
less than 1% to reduce error rate

Increasing order Currently the order Warehouse layout-stock difficult

processing number processing rate is 50 to access
from 50 to 55 per day
Forklifts are not being used

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 System Failures Analysis

Overview

The warehouse implemented a custom-built electronic warehouse management

system (WMS) two years ago. The delivery system has improved productivity but
following system failures still exit:

1. Issues with stock layouts

2. Higher than average absenteeism
3. Several warehouse supervisors are juniors and they need more training anf
experience
4. Lack of licensed forklift drivers

Communication Failures

- Complicate to order products

- Warehouse supervisors are all junior and so not effective in
communications
- The performance ratings of employees are not done correctly

Planning Failures

Following are the list of system failures related to planning issues:

1. No direct correlation between on the job KPI’s and business objectives

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2. Majority of KPI’s are not written in SMART format, this means that KPIs are not
written in a clear and easy to understand model
3. The performance ratings of employees do not correspond with the actual
performance of the company. This means that the system of performance
rating is lacking.

Reporting Failures

Following are the list of system failures related to reporting issues:

1. Only 80% of employees have documented KRA’s and KPI’s – 20% of

employees do not know what performance level is expected of them.
2. Employees have no clarity on what the company is trying to achieve
3. Performance rating system does not correspond well with the

Training Failures

Following are the list of system failures related to training issues:

1. Lack of training for warehouse managers

2. KPI’s are not aligned with warehouse goals – employees are not clear on what
the warehouse is trying to achieve.
3. Absenteeism related to training sessions conducted

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 Performance Indicators Review

Current Performance
Suitability Changes Required
indicators

Absenteeism Consider changing the rate to be below

Yes
1%

Turnover Consider changing the rate to be below

Yes
5%

Long service leave No change is required as liability target is

liability more than actual
No

Annual leave liability No change is required as liability target is

more than actual

No

Employee engagement Consider changing the rate to be above

No
90%

Employee attended Consider lowering the mandated training

training sessions sessions to 40 sessions
Yes

None. Proposed KPI’s to Other KPIs include:

add are:
1. Processing time per 1. No of orders processed per day
process Yes
2. Error rate per process 2. Idle time through-out the day
3. Staff training time

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Following performance improvement strategies are recommended for B&A Toy
Warehouse:

1. Implement a robust training plan for all warehouse managers

2. Make an arrangement with suppliers to ensure provision of temporary labour
3. Give forklift training and get licences to use forklifts
4. Clearly communicate to the employees about what is expected of them and how
their work is related to business objectives
5. Improve employee engagement through conducting courses and motivation
6. Decrease absenteeism at work as this improves efficiency and require less
number of employees on the payroll

Training and Development Plan

Training and
Review
development For Whom Benefits When Cost
data
required

Forklift license All Improve 1 Month $1500 17/10/2019

training and interested staffs skill per
registration warehouse and better person
staff and safe
members workplace

Staff All Improves Throughout $300 20/11/2019

engagement warehouse employee per
coaching staff engagement person
session

Implementing All KPIs are 1 week $500 15/11/2019

and warehouse better per
communication staff understood person
effective goals and a greater
and KPI’s number of
course employee fill
out their KPIs

Non- Warehouse Helps the 2 weeks $500 05/12/2019

performance supervisors supervisors per
review course in reviewing person
non-
performance
of workers

Page 32
Page 33
Systems and process reviews strategy for the organisation is below:

Step 1: Map processes.

Step 2: Analyze the process.

Step 3: Redesign the process.

Step 4: Acquire resources.

Step 5: Implement and communicate change.

Step 6: Review the process through internal process reviews.

Advantages of implementing a system and process review strategy for continues

improvement are following:

1. Clear and better understanding of KPIs and KRAs

2. KPIs are aligned with the business objectives
3. Redesign of warehouse layout to make order processing simple and faster
4. Making ordering easier for the customer
5. Performance rating system is redesigned to reflect actual performance of the
organization.

Conclusion

B&A Toy warehouse has improved a lot in its metrics by introducing the
electronic warehouse management system to optimize its operations. However, there
are some system issues which are hampering the organization from reaching its
potential. Some changes like changing stock layout, more training, forklift licences,
defining KPIs more effectively, would help B&A Toy warehouse to achieve its
objectives.

Page 34
References

1. https://en.wikipedia.org/wiki/Corrective_and_preventive_action
2. http://www.eis2win.com/expertise/performance-analysis/
3. http://www.benmeadowcroft.com/reports/systemfailure/
4. https://www.fwc.gov.au/annual-report-2014-15/part-3-performance-reporting/key-
performance-indicators
5. https://www.thebalance.com/performance-improvement-strategies-1918714
6. https://www.mindtools.com/pages/article/improving-business-processes.htm
7. http://www.infoentrepreneurs.org/en/guides/measure-performance-and-set-
targets/
8. http://www.nature.com/bdj/journal/v191/n4/fig_tab/4801134a_F5.html?foxtrotcallb
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10. http://jigsawtree.com/five-reasons-to-review-business-process/

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