Business Process Reengineering in Motorcycle Workshop X for Business Sustainability

Abstract

Company X is a small-scale enterprise that focuses on his business activities in motorcycle workshop that sells motorcycle spare parts and provides services for motorcycle. This company is facing tight competition that forces the company to reduce the profit margin, this results in negative impacts on company's profitability and market share. The company's internal data show that there is declining trend in business-to-business spare part sales for the last 10 years. Worrying that the declining trend will continue and threaten business sustainability, Company X conducted business process reengineering to strengthen competitive advantages. The business process reengineering changed the business process in business-to-business spare part selling process, warehousing, and inventory planning. The average customer service time before applying business process reengineering is about 30minutes, after process reengineering the time reduces to less than 15minutes. The availability of the products also increased from 70% to 90%. Improved performance in the sales process, combined with increased availability of the product can improve the overall quality of service so the company can seize market share that has been lost and maintain its business continuity.