Operational refers to process-driven activities. Lost sales, excess inventory and customer complaints are some examples of the multitude of operating problems that affect profitability and cash flow. Other operating problems include:
- Inventory levels strain bank lines
- Productivity doesn’t match industry norms
- Staff turnover is high
- Organizing logistics to manage foreign sourcing and international delivery
- Resource constraints that restrict growth
- When the company is unable to determine the lifetime value of a customer
Whether the product or service is physical or digital, a detailed examination must be conducted beginning with production and running through each step of the fulfillment process all the way to after sale customer service. Each of these steps can be optimized to improve performance, better manage costs and provide a better customer experience.