PUROLATOR INC.: LAUNCHING INNOVATION Case Solution
Purolator had a profit driven culture and focused to deliver the parcels and couriers on time. This had helped the employees to enhance their efficiency and to become extremely efficient at securing process competencies. The company had a competitive advantage of being innovative but by the passage of time it had developed less focus towards the customers and dissipated from its competitive advantage.
In November 2013, the management of the company had launched a five year plan named PuroNextin order to remain the company competitive and market leader.This plan had two main components; process transformation and new product development. The process transformation was focused to improve the operations of the company in the short to medium term. The new development component was focused to meet the growing needs of customers over the medium to long term.
|Purolator strategic priorities|
|Building High performance culture||Purolator had established its high performance culture in order to enable its employees to help customers thrive|
|Creating Suitable market advantage||The company intended to accomplish this through superior customer experiences and brand leadership
|Strengthening the portfolio||It could be accomplished by continuing investments in strategic lines of business to achieve high position in the market and profitable growth.|
|Growing market share||The company intended to growth its market share in parcel service by targeting under-developed and high return segments|
|Driving cost improvements||The company focused to improve the cost by the advantage of process innovation, technology and asset optimization|
1.Â Â Â Â Problem Identification:
The company intended to bring innovations in the company which seemed difficult for the management to bring and select most appropriate idea for innovation. The conflict had risen between innovation and efficiency. In addition, the company also intended to standardize the process which could provide zero-error in the operations.The management of the company was concerned to comply the operations with established norms of the company which was difficult for the managers as they were held accountable for the compliance of norms and standards.
Purolator had established standards for its process such as how courier pick up a parcel, how the parcel will move through the companyâ€™s hub system and lastly how will be it delivered to the end receiver. Therefore, deviation from these established norms were considered as risky.Due to this, the company lacks in training and development of employees which could ensure the high sales proficiency. In addition, the company also needs to have an effective MIS system to improve the innovative ideas generating process. The company also requires an effective management to retain the employees by providing them job satisfaction.
Furthermore, the company required a successful innovation plan by creating a culture of innovations. Moreover, it required a culture of innovation required havingidentifying and motivating employees who possess innovative skills and implementation process who could quickly implement the innovative idea.Also, the financing structure in the company was negatively affected the financial resources, which could not even ensure positive cash flows in the future as there no pricing strategy exists. In addition, the debit cost was also high, which had posed several challenges for the company.
2.Â Â Â Â Analysis:
Purolator was leading to provide several industry solutions and had been continuously involved in bringing innovations such as, it had launched an automated shipping system in 1989 which was an innovation at that time. Later in 2005, the company introduced hybrid electric beside delivery vehicles into its fleet. Furthermore, in 2001 it had registered for patent for Arc Flow Management computer software which was designed to fulfill dual objective such as managing capacity and revenue in its series of operations and to make it more effective and efficient………………
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