Case Study: TNT Express
I. Background
TNT Express is a company that offer’s international courier services. It delivers of an
average of 4.4 million parcels, documents, and pieces of freight every week and it ships 200
countries worldwide. The TNT express goal was to commit a customer standard for distributing
all the parcels, documents around that 200 countries. But, TNT suffered a major pitfall in 2004.
Because of the new appointment of their New CEO and does not meet the objective of its new
strategy. Suddenly, Negatives feedback arise from their organization the shipments of 4.4
average of parcels of goods are delayed because of changing the operation. Especially the staff,
IT System Is one of the most affected for this because they are not prepared to face a more
complex process of the shipments, and by because of all over change. Their company has
caused a big impact for their organization.
II. Statement of the Problem
a. How can TNT Express prepare their employees to a more complex work
environment using the 10-step model that lays the foundation for a quality culture?
In order to prepare the most effective and reliable for their employees is by using the 10-
step model that lays the foundation for a quality culture. In order to execute this, they must
identify first of the organization caused and the organization are responsible for their employee
to understand the quality culture and their role for the overall performance of the company.
And by that they’re company will surely improve. Moreover, leaders must be aware of the
development of employees, expand the quality trainings, ensure that quality-related attitudes are
integrated and make sure to maintain quality organization, and ensure that their employees will
show quality-positive attitudes of behavior. Take a hearts and minds approach to the feelings of
the employees when introducing a new culture.
By applying this 10 step model for their quality culture of their company, they can build a
great impact relationship within your organization. With that, it will be a big help for the future
success of TNTExpress, by gaining a positive feedbacks of your service all over the world, they
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can expect the support that the organization will get along the way. It is also important for
organizations to understand how customer’s and employees define value. The value of a
product or service is also the organization image, which creates a positive impact together and
for the company.
b. What type of total quality tool/continuous improvement method should
TNT Express employ in order to create a graphical representation of the
different inflows and outflows of their logistical processes? (Refer to Pages 1-14
of 09 Handout 1.)
They should employ cause and effect diagram to identify and isolate the causes
of the problem. It can help in brainstorming to identify possible causes of a problem and in
sorting ideas into useful categories. By mapping the existing processes in this tool, they will
be able to figure out what is wrong and can think of ideas to remove the causes of the
problem. Removing the cause of the problem, they will be able to match the existing IT
systems to a more complex system that would be efficient in monitoring the shipment and
delivery of items.
c. How can ISO 9000 contribute in the overall improvement of TNT Express’
organizational performance? (Refer to Page 1 of 11 Handout 1.)
For continual improvement of business performance, implementing ISO 9000 may
lead to a better quality service denotes a consumer perception of the company brings
quality to their customers which helps to increase customer retention and acquisition
for the company. ISO 9000 is a big help for TNT express to increase satisfaction and
will allow to compete effectively and hopes for gaining a more complete understanding
of the needs and desires of their internal customers. If their company was certified for
ISO 9000 they will have a bigger advantage for their competitors.
III. Areas of Coonsideration
Delayed deliveries parcel may not reach the consumer on time
System Failure
Needs expand quality training of employees
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Lack of understanding
IV. Alternative Course of Action
Educate and Training Employees. As stated in the issue, employees were not
ready to face a more complex process in the shipment of items. The CEO
should educate her employee about this new advocacy and train them for the
job. Advantage of this course of action is, these new employees can train new
employees about this advocacy. The disadvantage is, they need to invest profit
for this training so that employees fully understand what to do.
They need to focus on time management so the deliveries will not be delayed.
Double check the system before working so it won't have a system problem.
Advantage of this course of action is they can benefit from this for a long time.
Disadvantage is that, employees already knows the concept of time
management. They understand prior to the coming of new advocacy by the new
CEO.
V. Recommendation
The organization of TNT Express must focus from the strength from their past. On their
strategy before, they are more effective with their services and they serve their markets better
than any competitor. They stay in business longer because they proactively respond to the
environment around them. Cut the jargon, and make sure everyone in your organization
really understand the plan. Involve your staff in the final development of the plan ask for and
use employees for idea’s.
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