Shabra Plastics & Packaging

6 . Outcome

6.1 Benefits for Customers

There were a number of benefits for Shabra’s customers:

• Increased efficiency – Web ordering now means that customers can quickly and easily place orders via the Shabra website. One person can now look after the orders and collection of waste. Less time is wasted on the phone or writing faxes.
• Direct invoicing – For Musgraves, linking in via EDI allows them to directly receive invoices from Shabra and therefore increase their own efficiency.
• Less errors – With online ordering, it is far less likely that an incorrect order is shipped to a customer.
• Last minute order changes – Once an order is received and confirmed, a delivery date is supplied. If the customer realises they need another item prior to that delivery date, they can simply call and have it added to the order.

6.2 Benefits for Shabra Plastics

Shabra and the team that developed the system have seen a number of benefits in the 12 months the system has been operational:

• Increased margins - Profit margins increased 4.5% in 2002 as a direct result of the efficiencies delivered by the eBusiness system.
• Higher than expected revenues - Revenues stayed at their 2001 level and didn’t drop as a result of the environmental bag tax. Revenue should have been down 10% from 2001 but, by maintaining those levels, the company realised what could be described as 10% revenue growth.
• Increased efficiency – The new system removes a lot of data entry and staff that used to perform simple data entry can now be refocused to add value elsewhere in the organisation.
• Better utilisation of staff - Sales people are now driving new business acquisition as they have to visit current customers on a less frequent basis.
• Better company culture and processes - The company has changed hugely since implementation of the new system with less paperwork being done, and increased quality and frequency of liaison with customers and increased efficiency.
• Better coordination of orders – As soon as an order is confirmed, a delivery date is given to the customer. If the customer wants to order an extra item afterwards, it can simply be added to the original order. This means that a double order doesn’t have to be generated with all the associated time and paperwork. Better quality information – The system allows staff to tell customers what is in stock and what isn’t and the value of their order. It also prompts the staff member to check whether or not the customer has recyclable waste for collection.
• Standards - The new system makes it easier for Shabra to document the required processes to adhere to standards laid out by ISO and Repak.