Assignment No. 3 TCS Operations Management Management MS 492
Ali Ammar
2011041
Ali Raza
2011047
Fahad Sarfraz
2011089
Nasir Imtiaz
2011331
Umair Zahid
2011433
Table of Contents 1.
1.
Operations Strategy -------------------------------------------------------------------------------------------------- 1 1.1
Introduction ----------------------------------------------------------------------------------------------------- 1
1.2
Corporate Vision and Mission ------------------------------------------------------------------------------- 1
1.3
Core Values ------------------------------------------------------------------------------------------------------ 2
1.4
Global Strategic Objectives ---------------------------------------------------------------------------------- 2
1.5
Order Qualifiers and Order Winners ---------------------------------------------------------------------- 3
1.5.1
Order Qualifier ------------------------------------------------------------------------------------------- 3
1.5.2
Potential Order Loser ----------------------------------------------------------------------------------- 3
1.5.3
Order Winner --------------------------------------------------------------------------------------------- 3
1.6
Core Competencies -------------------------------------------------------------------------------------------- 4
1.7
Implications of Operations Strategy ----------------------------------------------------------------------- 4
1.8
Changes in Recent Years-------------------------------------------------------------------------------------- 4
Product and Service Design ---------------------------------------------------------------------------------------- 5 2.1
Domestic Express Services ----------------------------------------------------------------------------------- 6
2.1.1
Mail Management Solution (MMS) ----------------------------------------------------------------- 6
2.1.2
Sentiments Express and TCS Connect--------------------------------------------------------------- 6
2.1.3
Same Day Express---------------------------------------------------------------------------------------- 6
2.1.4
Overnight Express --------------------------------------------------------------------------------------- 6
2.1.5
Red Box ----------------------------------------------------------------------------------------------------- 6
2.2
International Express Services ------------------------------------------------------------------------------ 6
2.2.1
International Freight Express ------------------------------------------------------------------------- 7
2.2.2
Red Box ----------------------------------------------------------------------------------------------------- 7
2.2.3
Student Express ------------------------------------------------------------------------------------------ 7
2.3
Logistics Services ----------------------------------------------------------------------------------------------- 7
2.3.1
Warehousing and Distribution (W&D)-------------------------------------------------------------- 7
2.3.2
Home Movers--------------------------------------------------------------------------------------------- 7
2.3.3
Overland Express ---------------------------------------------------------------------------------------- 7
2.4
Other Products and Services -------------------------------------------------------------------------------- 8
2.4.1
Intiana Private Limited --------------------------------------------------------------------------------- 8
2.4.2
Octara Private Limited ---------------------------------------------------------------------------------- 8
2.4.3
Visatronix -------------------------------------------------------------------------------------------------- 8
2.5
Product Life Cycle ---------------------------------------------------------------------------------------------- 8
3.
4.
2.5.1
Introduction Phase -------------------------------------------------------------------------------------- 8
2.5.2
Growth Phase --------------------------------------------------------------------------------------------- 9
2.5.3
Maturity Phase ------------------------------------------------------------------------------------------- 9
2.5.4
Decline Phase --------------------------------------------------------------------------------------------- 9
2.5.5
Renewal Stage -------------------------------------------------------------------------------------------- 9
2.6
Service Variation in various Markets --------------------------------------------------------------------- 11
2.7
Operation Challenges ---------------------------------------------------------------------------------------- 11
Innovation and Improvement------------------------------------------------------------------------------------- 12 3.1
Introduction ---------------------------------------------------------------------------------------------------- 12
3.2
Focus of Innovation ------------------------------------------------------------------------------------------- 12
3.2.1
Leadership and Strategy ------------------------------------------------------------------------------ 12
3.2.2
Organizational Structure ------------------------------------------------------------------------------ 13
3.2.3
Performance Metric and Reward Strategies ----------------------------------------------------- 13
3.3
Innovation at TCS ---------------------------------------------------------------------------------------------- 13
3.4
Tools for Innovation ----------------------------------------------------------------------------------------- 13
3.4.1
Listen to Industry --------------------------------------------------------------------------------------- 13
3.4.2
Think Big -------------------------------------------------------------------------------------------------- 13
3.4.3
Get an Ideas Scout -------------------------------------------------------------------------------------- 14
References ------------------------------------------------------------------------------------------------------------- 15
List of Figures Figure 1 TCS Domestic Express Service ................................................................................................ 1 Figure 2 TCS's Core Values. ................................................................................................................... 2 Figure 3 TCS's Product Classification .................................................................................................... 5 Figure 4 TCS Product Life Cycle ......................................................................................................... 10
1.
Operations Strategy
1.1
Introduction
TCS is one of the leading courier services in Pakistan. With its business model developed around fast and reliable delivery at affordable prices, it enjoys a considerable market share in Pakistan. Established in 1983 with only 12 stations and 25 bookings the first day, TCS has over 722 Express Centers today, dealing with over 35,000 walk-in customers daily. With its headquarters located in Karachi and regional centers in all the major cities in Pakistan, it ensures that every document and package is delivered to the right address at the right time. Figure 1 shows the structure of TCS Domestic Express Service.
TCS Express & Logistics
Southern Regional
Central Regional
Northern Regional
Office
Office
Office
Service Centre
Service Centre
Service Centre
Service Centre
Service Centre
Service Centre
Service Centre
Service Centre
Service Centre
Figure 1 TCS Domestic Express Service
1.2
Corporate Vision and Mission
TCS’s mission and vision statements are focused on building a recognized, professional, innovative, profitable and knowledgeable logistics/services enterprise, which has the interest of customers, employees and shareholders at its core of operations, demonstrating a clear concern for ethical conduct and good corporate citizenship with the objective of growing into a regional and global player. It aims to direct all of its organizational efforts at building upon Page | 1
its existing organizational strengths and brand recognition to achieve enhanced levels of profitable growth in the core business and diversify into new areas that complement and supplement the core business with the diversification aimed at achieving excellence and industry leader status in the new areas.
1.3
Core Values Complete Quality
Ethics in its
Profitability
Operations
through
Core
Efficiency
Values
Creative Growth
Justice
Figure 2 TCS's Core Values
1.4
Global Strategic Objectives
Base on the company’s vision and mission statements, the global strategic objectives of TCS are:
National Growth into a market leader
International Growth
Growth based upon Customer Focus
Ethical Conduct in all dealings
Diversification and expansion into businesses that complement its current activities
Build on innovation and profitability
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1.5
Order Qualifiers and Order Winners
1.5.1
Order Qualifier
Like all other courier and cargo delivery services, the order qualifier for TCS is Time. Thus, to meet its customer’s requirements and ensure timely delivery, TCS has built a vast transportations network. Nationwide, it has 157 offices, making it the biggest network of its kind in Pakistan. TCS operates with over 8,000 professionals, 722 plus conveniently located Express Centers, 35,000 daily walk-in customers, dedicated chartered Boeing 737 aircrafts, 2000+ online and offline locations, 401 satellite tracked delivery vehicles and a proficient team of 4000 couriers dedicated to provide reliable and on time service in the industry. 1.5.2
Potential Order Loser
The main order losers for TCS can be:
Delivery delays
Damaged packages
Lost packages
Document tempering
Delivery to wrong address
1.5.3
Order Winner
The main order winner for TCS is its flexibility of products and services. It offers fragile & special handling of packages to ensure delicate objects do not break during shipping. By providing deliveries in out-of-service areas, it can control the market there areas due to lack of competition. It even works on special occasions, ensuring that deliveries are made even on government holidays. Economical 2, 5, 10 & 25 kg Red Boxes allow large packages to be delivered at affordable prices. Sentiments Express and TCS Connect enable special gifts and customized notes to be sent to the loved ones on special occasions from the home or any TCS service center. TCS Cargo provides pickup and delivery of heavy shipments for large household and commercial cargo. TCS Home Movers help safely move all the furniture and appliances from one place to another, making moving into a new house much easier. International Express also allows economical shipment of packages and documents to over 3500 destinations worldwide. Page | 3
1.6
Core Competencies
TCS’s core competencies are its unique and huge network of offices, service centers, delivery trucks and couriers; which help it make all of its deliveries on time.
1.7
Implications of Operations Strategy
For high speed deliveries, TCS has implemented several features into its daily operations:
Web-based Management System: The Inventory Management & Warehousing
process has been automated with an in-house web- based management system “WMS” that provides online access and real-time information to customers for ordering, monitoring and managing their stocks.
24/7 Call Center: Centralizing customer calls in Karachi, Lahore and Islamabad
under one roof, accommodating 300 employees at a time, the contact center offers TCS customers various channels of communication.
Tracking system: TCS provide its customers online tracking ID to keep them
updated about their mails and packages.
Voice of customers: TCS has introduced “Voice of Customer s”, a medium for
customer’s suggestions and feedback which could help them to improve their services.
Reduced operating costs: High efficiency model to ensure minimum waste time.
High availability of service centers: Service centers are located in strategic locations
to ensure easy access to customers.
1.8
Changes in Recent Years
Over the last decade, TCS restructured its entire organization to provide better facilities at their stops by increasing outlets and by increasing channels in different cities as well as towns. In 2007, it also got the ISO 9001:200 Certification. It was also the Brand of the Year in 2007 and 2008. Over the last decade, it has also expanded its business by acquiring visa rights to several countries as well as by starting up new ventures, like Intiana, Visatronix and Octara.
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1. Product and Service Design Acknowledging the importance of swift communication in today’s world, TCS has become the market leader in Pakistan’s courier services. The services provided by TCS can be broadly classified into three main categories: Express services, Logistics services and Other products and services. Figure 3 shows the classification of the products a nd s services offered by TCS.
TCS Express & Logistics
Express Service
Logistics Service
Domestic
International
Express Service
Express Service
MMS Sentiments Ex ress Same Day Express
Warehousing &
Others
Visatronix
Distribution Home Movers
Intiana
Overland
Octara
Red Box Student Express International Freight Express
Over Night Express Red Box
Figure 3 TCS's Product Classification
A short account of these services is provided below.
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2.1
Domestic Express Services
Following services fall under the category of Domestic Express Services. 2.1.1
Mail Management Solution (MMS)
MMS is equipped with state of the art printing and sorting technology that has been sourced from the best suppliers across Europe and Asia Pacific. Through MMS, telecommunication service provider like UFone print and ship their Postpaid customers bills throughout Pakistan.TCS print shops in Karachi and Lahore are Pakistan’s fastest digital production printing facilities with a capacity to print 2 million pages and 400,000 stuffing of envelopes per day. 2.1.2
Sentiments Express and TCS Connect
TCS is widely known as a gift delivery service. The gifts can be anything from sweets and cakes to flowers, cushions and electronics. The gifts delivered are wrapped in sophisticated gift papers and a personalized card is enclosed with them. 2.1.3
Same Day Express
Products are delivered to major cities within the country the same day as reserved. 2.1.4
Overnight Express
Letters, documents and small packages are delivered on the next working day to many locations in the country. 2.1.5
Red Box
Bigger shipments are delivered on the next working day to any location in the country by the Red Box service.
2.2
International Express Services
Worldwide delivery of goods can be achieved by the international express services offered by TCS. Page | 6
2.2.1
International Freight Express
Heavy weight and less urgent shipments can be sent to 32 frequent destinations in the world at economical rates using this service. 2.2.2
Red Box
Red box service offers choices of 10 kg and 25 kg weight boxes for delivery of toys, clothes, gifts, electronic products etc. anywhere in the world cost effectively. 2.2.3
Student Express
Delivery of documents and papers can be made to colleges and universities anywhere in the world at extremely reasonable prices using this service.
2.3
Logistics Services
Logistics department of TCS is primarily concerned with the motion and storage of products. 2.3.1
Warehousing and Distribution (W&D)
W&D offers efficient and economical warehousing services. The equipment employed by the company is state of the art and is selected by careful analysis. It uses modern and most efficient tools for warehouse management and radical distribution models. 2.3.2
Home Movers
TCS provides an extremely reliable home moving service which understands your specific needs for the moving process. It takes care to get the items packed safely, keep them preserved and transport them from one location to the next in a safe and sound condition. 2.3.3
Overland Express
TCS provides facilities for bulk cargo movements by satellite-tracked vehicles to 250+ cities in the country. The transportation is carried out via 40 and 50 ft. containers.
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2.4
Other Products and Services
2.4.1
Intiana Private Limited
It provides specialized air ticketing services to all domestic and international carriers and offers exclusive customizable packages to suit the budgets of its customers; thus catering to all segments of the market. 2.4.2
Octara Private Limited
It is a Business Information Management company specializing in Corporate/Management Training, Workshops, Seminars, Conferences and Publications. It also provides training to TCS employees to help make them more professional; thus assisting in the overall growth of TCS. 2.4.3
Visatronix
It facilitates its customers by providing its valuable services throughout the visa acquisition process. Visa Drop Box facilities for visa applicants are provided all over Pakistan in the nonimmigrant (work, visit, study) categories for Canada, India, Spain, Italy, South Africa, Malta, Malaysia, Egypt and Tunisia. The division quickly gained momentum in all major cities by providing relevant information to its customers on visa policy of different countries, aiding and assisting them in filling out visa forms and securely transporting passports to and from embassies. It also provides Visa acquisition services for Hajj and Umra. Visatronix has made the visa application process both convenient and reliable.
2.5
Product Life Cycle
2.5.1
Introduction Phase
The need to deliver a document safely, quickly and reliably between the major cities of Pakistan was recognized and thus, TCS was established in 1983 with 12 stations and only 25 customers on the first day.
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2.5.2
Growth Phase
By 1985, a nationwide network of 100 service centers had been established to meet the banking needs of the time. In 1989, Sentiments Express was established as a means to deliver special gifts on special occasions. In the start of the era of 1990, TCS became the leading Courier Service provider in Pakistan with approximately 500 outlets all over the nation with the same day delivery facility. Between 1992 and 1996, TCS diversified its structure to become self reliant and established its own fleet of trucks. 2.5.3
Maturity Phase
Between 1997 and 2000, TCS expanded its network to the international market, setting up its operation in U.A.E. and Canada. 2.5.4
Decline Phase
After 9/11, TCS was banned in Canada, which lead to huge losses in the international market making it enter a temporary decline stage. 2.5.5
Renewal Stage
During 2001-2002, TCS started to restructure its entire organization to provide better facilities domestically by increasing outlets and channels in different cities and towns. In 2002, TCS Aviation was established. In 2004, TCS expanded its service network with the addition of SEA & AIR freight division, Travel & Tour Company (INTIANA & VISATRONIX) and Management Development Service Company (OCTARA). In 2006, Mail Management Solution (MMS) was established. TCS was recognized as Brand of the Year in 2007 and 2008. In 2009, it aslo expanded its international cargo sevice.
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Figure 4 TCS Product Life Cycle
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2.6
Service Variation in various Markets
TCS has a very comprehensive setup in Pakistan. It offers every practical facility throughout the country since it has a very strong hold here. It doesn’t have many competitors in the country and therefore it has become the generic term for express courier services in Pakistan. On the other hand, in the international market where couriers like FedEx and UPS own most of the market, TCS offers only the delivery services. It provides pickup services in only 3 countries across the globe which includes Pakistan, U.K. and the U.A.E.Even in the local market, the services it provides to its customers vary from place to place. Most out-of-service area only have cargo express services. Sentiments Express is only available in major cities but since it has an online transaction system, it can be accessed everywhere from Pakistan. Home Movers, Intitana, Visatronix, Warehousing & Distribution and Octara are also only available in the major cities only.
2.7
Operation Challenges
TCS is a Pakistan based company. All the people in the management team are from Pakistani descent and work from here. This can create a communication gap on the international scale within the organization. The employees have to be properly motivated to do their job right.
2.6
Service Variation in various Markets
TCS has a very comprehensive setup in Pakistan. It offers every practical facility throughout the country since it has a very strong hold here. It doesn’t have many competitors in the country and therefore it has become the generic term for express courier services in Pakistan. On the other hand, in the international market where couriers like FedEx and UPS own most of the market, TCS offers only the delivery services. It provides pickup services in only 3 countries across the globe which includes Pakistan, U.K. and the U.A.E.Even in the local market, the services it provides to its customers vary from place to place. Most out-of-service area only have cargo express services. Sentiments Express is only available in major cities but since it has an online transaction system, it can be accessed everywhere from Pakistan. Home Movers, Intitana, Visatronix, Warehousing & Distribution and Octara are also only available in the major cities only.
2.7
Operation Challenges
TCS is a Pakistan based company. All the people in the management team are from Pakistani descent and work from here. This can create a communication gap on the international scale within the organization. The employees have to be properly motivated to do their job right. Lack of communication with the employer can lead to demotivation of the employees. To avoid this, the management team must make regular appearances to offices around the world to let the employees know that they are properly involved with them. The challenges in the daily transactions begin as soon as the product is handed off by the customer. Suppose that 50 people visit the office in a day and there are 50 products to be delivered to 30 different cities. The employee at the service center immediately sorts the items according to the places they are to be shipped to. Now, if some mistake was made anywhere along the delivery process, the product could end up lost, delivered to the wrong person or at the very least the product will be delivered late. Thus, it is crucial to double check and ensure that initial sorting of all packages is done correctly or major losses in both capital and reputation can be incurred. The promise of the company to deliver the items the same day or the next working day puts extra burden and responsibility on the employees. Flexibility must be maintained between the need to satisfy the customers and protection of the lives of the company’s employees. Otherwise, it can lead to drastic outcomes.
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3. Innovation and Improvement 3.1
Introduction
Innovation lies at the core of any organization’s strategic position in an industry. Innovation is what in true essence gives the company a competitive advantage over its competition and creates a dynamic progress oriented culture in a company, ensuring its positive growth. Hence the importance of encouraging innovation in an organization cannot be over stressed not just for an organization’s market success but also for employee training and development and the overall employee empowerment which leads to effective HR. The role of the senior leadership becomes absolutely critical here because it all trickles down to the lower hierarchy and hence an overall work culture and direction is cultivated by the senior leaders. Insights from employee surveys show that innovation in an organization starts at the top, with visionary leaders who provide a strong direction and establish an organizational culture that will encourage innovation at all levels of its structure. To establish such a culture enables the staff to work without fear of failure. They need to realize that it their human resource that in essence is the backbone of any organization and to be competitive in the current market, innovation is the key. With the importance of innovative work culture established, Innovation has to become management’s new imperative. Leading companies thrive on innovation. Therefor e the management
needs
to
implement a powerful
framework based
on
competence
and
commitment that will help their organization become world-class innovator.
3.2
Focus of Innovation
To cultivate innovation at all aspects of business, management needs to focus on three key areas. 3.2.1
Leadership and Strategy
There are particular leadership styles that encourage innovation, and senior leaders can work with middle management to develop these skills. Management should ensure that resource allocation is an integral part of aligning innovation to strategic objectives. Innovation needs to be built into the process.
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3.2.2
Organizational Structure
Decisions should be made at the right level by empowered individuals and teams. The use of internal mentors, outside angel investors and venture-capital expertise to speed up idea assessments and commercialization are powerful tools to foster innovation. 3.2.3
Performance Metric and Reward Strategies
In order to encourage innovation, it needs to be part of the overall performance management and needs to be rewarded.
3.3
Innovation at TCS
TCS is one of the organizations that has in fact recognized the importance of innovation and hence continues to grow. Innovation and Creative Growth is one of the core values of TCS. The mission statement of TCS states: “…The TCS People will however be encouraged to be open to unconventional ideas and services and recognize new trends at very early stages". TCS’s Business Development Division (Octara) also gives frequent seminars and training sessions to its employees to help nurture their growth and innovative thinking.
3.4
Tools for Innovation
Considering these facts, the three tools that we would recommend to TCS are listed below. 3.4.1
Listen to Industry
TCS should encourage their employees to read across and within their industry and to anal yze the news especially related to those of its major competitors like DHL, FedEx etc. It should encourage employees to analyze tactics in the industry and actively contribute to its own strategy. Employees should be included in strategy development meeting to make them feel like a part of the organization. This helps empower the employees and creates a sense of ownership while at the strategic level, it ensures a diverse tool of ideas, up to date with competition and a work culture built upon innovation. 3.4.2
Think Big
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Insist on the importance of maintaining the company’s vision. TCS should identify the people who have this vision, and make sure they collaborate with those who are responding to user requests and market research so that the company’s strategies are aligned with the company vision and customer demands. 3.4.3
Get an Ideas Scout
The key to organization success not just lies in hiring the right people, but in knowing the people. This helps to utilize the true potential in the most effective way. Thus, TCS should keep an eye on employees who are close to users and customers, enjoy generating new ideas, and know how to listen. They are an asset to the company and should be involved in strategy making.
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4. References
Sentiments Express http://www.sentimentsexpress.com/
Octara http://www.octara.com/
Visatronix http://www.visatronix.com/pk/index.htm
Intiana http://www.intiana.com/
TCS Connect http://www.tcsconnect.com/
TCS Courier http://www.tcscouriers.com/
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