Description

Managing Business Process Outsourcing

Jun 2025 Examination

PLEASE NOTE:  This assignment is application based, you have to apply what you have learnt in this subject into real life scenario. You will find most of the information through internet search and the remaining from your common sense. None of the answers appear directly in the textbook chapters but are based on the content in the chapter

Q1. Judd Chemicals is an 80-year contract manufacturer of skincare and haircare products in Chicago, USA. The company is struggling to streamline its operations due to fragmented processes across different departments, leading to inefficiencies and difficulty in aligning projects with overall strategy. Jim McNulty, the COO has decided to implement a comprehensive business process portfolio management system to identify, prioritize, and optimize their key processes.

Discuss the role of Business Process Portfolio Management (BPPM) in reducing risks and as well, maximizing decision-making capabilities & business profits at Judd Chemicals. (10 Marks)

Ans 1.

Introduction

Judd Chemicals, a well-established contract manufacturer with eight decades of industry experience in skincare and haircare products, is currently challenged by internal process fragmentation. The siloed nature of its departmental operations has resulted in inefficiencies, lack of strategic coherence, and suboptimal resource utilization. In an era where operational excellence is pivotal for competitiveness, Business Process Portfolio Management (BPPM) emerges as a robust strategic framework. It provides organizations with a systematic method to identify, evaluate, prioritize, and continuously improve their portfolio of business processes. By aligning operational workflows with corporate strategy, BPPM reduces systemic risks, enhances decision-making effectiveness, and drives sustainable profitability. The decision by COO Jim McNulty to implement BPPM is a strategic intervention aimed at transforming Judd

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Q2 Vandelez is a Multinational Dairy Co-operative headquartered in Canberra, Australia. The company produces millions of tonnes of dairy ingredients and consumer products each year. The Global Supply Planning and Scheduling is its backbone process because it involves planning and transformation of goods to be delivered to the customers. As part of the Supply Planning and Scheduling initiative in Australia, this Co-operative needed to establish and implement new ways of working that will be the starting point for a global standard.

The organization needed to achieve improvements in this process to establish common ways of working through one integrated business planning cycle, common process, one tool (SAP APO), clear roles and responsibilities and improved KPI’s. However, the AS-IS is hard to document due to the complexity of the process, unavailability of a clear end-to-end picture and disconnect between the business units. Mike Leonard, the COO is thinking of inviting a BPM Consulting Firm to produce a complete, accurate and agreed picture of the process that could be used to efficiently improve realizable process improvements, i.e., the AS-IS and TO-BE modelling of the end-to-end process, from demand planning through to production scheduling.

Discuss how Business Process Management (BPM) contributes to operational excellence and profitability in an organization.  (10 Marks)

Ans 2.

Introduction

Vandelez, a multinational dairy co-operative based in Canberra, Australia, plays a vital role in the global dairy supply chain. Its operational strength lies in its Global Supply Planning and Scheduling, which is responsible for transforming raw dairy products into consumable goods delivered efficiently to global markets. However, due to the complexity and scale of operations, the company faces significant challenges in documenting its current (AS-IS) processes, achieving transparency, and aligning its various business units. In response, Mike Leonard, the COO, is considering the involvement of a Business Process Management (BPM) consulting firm to map and improve these processes. Implementing BPM is crucial not only to standardize

Q3A. Carbonara Group    is an Insurance Company based in Palermo, Italy. As of 2024, it is the fourth-largest insurance company in Italy and ranks among the world’s largest insurance companies by net premiums and assets.    Like many other firms, Carbonara is facing financial pressure and need to improve cost efficiency to increase competitiveness and profitability.

This is aggravated by Carbonara’s lack of expertise in non-core functions such as Customer Service, IT & Marketing. In the case of core functions such as Policy Admin, Underwriting, etc., the insurance industry is short on talent, due to people leaving the industry, leading to spiralling costs. The CEO feels that the easiest way to reduce costs is by outsourcing insurance services.

The CEO asked Turi Guiliano, the COO to prepare a briefing document, detailing the (Top 5) Reasons for Outsourcing by Carbonara. (5 Marks)

Ans 3a.

Introduction

Carbonara Group, a leading insurance company based in Palermo, Italy, is under growing financial pressure due to rising operational costs and a lack of internal expertise in several non-core areas. Simultaneously, talent shortages in core insurance domains are driving up expenses, further affecting profitability. In response, the CEO is considering outsourcing as a cost-effective solution to streamline operations and regain a competitive edge. The COO, Turi Guiliano, has been asked to outline the key reasons why outsourcing could be beneficial for

Q3B. After an exhaustive search and due diligence process, the Carbonara Group    has identified MajorDomo, the third-largest Insurance BPO firm in India as their BPO Partner. Who are the Stakeholders in this case? Why is Stakeholder Management important in a BPO engagement and what is its impact on business success. (5 Marks)

Ans 3b.

Introduction

Following a detailed search, Carbonara Group has selected MajorDomo, India’s third-largest insurance BPO provider, as its outsourcing partner. The success of this engagement will depend on more than service-level agreements; it requires coordinated efforts and understanding among various stakeholders. Proper stakeholder management ensures alignment, transparency, and accountability throughout the partnership. Identifying the key players and managing their expectations will play a critical role in ensuring that the outsourcing initiative delivers tangible