Alex Schuster began “Pine Valley Furniture” (PVF) as a hobby. Initially, Alex would build custom furniture in his garage for friends and family. As word spread about his quality craftsmanship, he began taking orders. The hobby has since evolved into a medium-sized business, employing more than fifty workers. PVF specializes in Residential and Commercial furniture, and its customers ranging from individuals to small and medium businesses.
PVF’s main business is to build furniture from raw material, sell and ship furniture to customers which includes work done by sales staff, managers, building furniture in the warehouse and procuring raw materials from the suppliers when required, when a customer buys a Residential or commercial furniture. Each furniture transaction requires a lot of standard communication to be sent to buyers, suppliers and furniture workshop, and most importantly – managing deadlines.
PVF’s business processes are manual, including the creation of customer’s contacts, accepting payments and issuing receipts, as well as generating letters to furniture workshop and ordering raw materials from suppliers. Customer’s, Supplier’s details are maintained using a spread sheet, and appointments to see the furniture’s and to see the raw materials were maintained in Microsoft Outlook.
All customer and suppliers files at this initial stage are paper based and staff often spends hours searching for a particular file. Once the customers or suppliers file is found, additional time is spent looking for documents within the particular file. Sometimes files would go missing and then reappear after a few days. In addition to this, the Income Tax Office requires that the file from closed sales had to be kept on the PVF’s records for 5 years. Assume discount rate to be 10%
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