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Contributor
have grown to the point where it ’ s no longer a core function , but it is indispensable . While it may not be that specific company ’ s core function , it is for a BPO provider . By taking over certain operational processes , whether it ’ s receiving , picking and packing , dispatch or stocktaking – there is massive potential to streamline these business areas that are currently underperforming due to inefficiencies .
A BPO provider completely assumes responsibility for every facet of the outsourced processes , including the labour component , which means that clients no longer require massive resources on site , nor do they need to handle any human resources or Industrial Relations matters themselves . In this way , a BPO provider relieves the client of a large portion of risk and responsibility , allowing the client to focus on the actual core components of their business .
A BUSINESS MODEL THAT HINGES ON PRODUCTIVITY In an e-commerce ecosystem , warehousing and distribution of products is critical . There are a lot of variabilities , as it is the market that determines how stock moves off the shelves . However , there is only so much that we can achieve in this space using technology , and there will still be a human element required to pack , check and deliver .
This is where the BPO model can give businesses the flexibility they require to meet such varying demands , easily . The traditional model was to have a full complement of staff , day in and day out , who get paid the same hourly rate regardless of order numbers . Under such conditions , motivation becomes a problem .
The BPO model varies headcount according to orders that need to go out , and workers are paid on a productivity basis . The more the individual worker produces , the more they can earn , which is an effective incentive . This means that the client gets the benefit of greatly increased productivity levels , without the permanent salary cost or any of the related employer obligations .
IT ’ S AN ONGOING PROCESS It ’ s tempting to think of BPO as an easy efficiency solution that ’ s plug-and-play , but in reality , there is a lot of work required in the background to develop a complete understanding of forecasts to do resource planning .
Every touchpoint in the process must be examined for improvement opportunities , whether it ’ s better management or more technology enhancements . In this way , the BPO provider becomes an essential part of their client ’ s business – not by providing a quick fix to their problems , but as a partner in long term , continuous incremental improvement . RACA
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RACA Journal I June 2023 www . refrigerationandaircon . co . za