Sanford Insurance Supply Chain Management

Just like the dynamic technology innovation, disruptive newcomers and higher customer expectations redefine the marketplace compelling the insurers to remain focused on competing in a vibrant industry addressing challenges, as well as growing the bottom-line profitability and top-line sales. Church insurance has remained to be an understudied topic. Consequently, very few insurance companies focus or rather specialize in only a church and related ministries market niche. Through an analysis of the prospective full-service Sanford Insurance which specializes in insuring churches and related ministries, the project intends to pinpoint key threats and opportunities that should demand attention from the insurers in the years to come. The project analyses organizational setting based on its mission, customers, and value. It also examines Sanford Insurance’ supply chain management, logistics, six sigma, innovation, Just-In-Time, customer relation management, and total quality management. Each aspect is scrutinized on the scale of description, benefits, implementation, and biblical integration. The analysis brings to light, several areas of excellence and also of improvement that church oriented insurance agencies can revisit.

Keywords: Sanford Insurance, churches and related ministries, insurance coverage, insurance policies, internal/external customers

Sanford Insurance Integrative Learning Project

Organizational Setting

Mission

Located in Richmond, Virginia, Sanford Insurance is a company founded on the principles of helping protect the churches and related ministries as they serve the Lord. As a full-service insurance agency, the mission of Sanford Insurance is to cover all the churches and related institutions through a Christian insurance company. The main services offered by the agency include workers’ compensation, commercial auto, liability, offering property, and multiple coverages that are specific to church. The key areas where Sanford Insurance operates include Vermont, Massachusetts, Rhode Island, Maryland, Virginia, and Washington D.C.

Customer

Description. Sanford Insurance has been facing stiff competition from a number of insurance agencies. However, it stands at a better completive advantage given that most of these agencies are generalists as they insure any and every risk. Sanford Insurance focuses solely on insuring ministries within its niche being churches. Such a precise specialization has enabled the agency to become an expert in the insurance industry. Another variation in the manner of operations is customer service. Majority of the Sanford Insurance competitors outsource their customer service to the carrier call center. On the contrary, Sanford Insurance has its customer service team in-house to upsell additional products and coverage options and to monitor retention and service levels, and coverage advice. Whereas most of the agencies represent companies which are in business for a short period of time, Sanford represents a church-specific carrier identified as Brotherhood Mutual. This carrier is a true Christian company that provides coverage options and at the same time gives back to the community.

Internal Customers.

This is the group of consumers located are within the agency. They include the sales agents/producers whose main purpose is to gather information from the customers and market the firm’s product by contacting churches and related ministries. Additional responsibilities of the sales agents comprise of closing sales, attending board meetings, quoting accounts, and prospecting potential accounts. The customer service representatives (CSR), are another key aspect of the Sanford Insurance’ internal customers. The primary functions of the CSRs are helping the sales agents in issuing the policy and completing administrative duties, issuing proof of coverage, effecting changes to policies, and handling phone calls from the external clients. The retention rate for the internal customers in Sanford Insurance is 98 percent, being a factor that has helped the agency realize growth besides enabling it to maintain business.

External Customers. The external clients are the people who indirectly buy the church insurance through the Sanford agency. In most cases, all the members of the church cannot individually purchase the insurance but rather delegate the duty to the board of directors. The responsibility of making decisions and fulfilling them, for the churches and related ministries is left upon the board of directors. The Board can only effect changes through a vote, including the insurance proposals for the church. External customers are considered to be the lifeline of the Sanford Insurance for the reason that without them, the agency would fail to be in business due to lack of commission.

Value

Providing value to its customers who are mainly churches and related ministries is a major concern for Sanford Insurance. The agency helps the consumers with recommendations, managing risk and providing an excellent coverage at fair prices. Measurement the buildings’ characteristics is carried out by Sanford’s agents who also gather information from the necessary parties at the church. To ensure that their client’s buildings are insured to value, the agents are compelled to complete a free replacement cost estimator. One of the values of the organization is that the agent will complete a free replacement cost estimator to ensure the building is insured to value. Value is guaranteed to all the customers of Sanford Insurance particularly because it represents a reputable church niche carrier and, therefore in any event of a claim, the agency can stand behind its product.

Supply Chain Management

Description

In many organizations, Supply Chain Management (SCM) typically involves the process of materials from the supplier to the wholesaler and then from the retailer to the consumer. Sanford Insurance is an independent insurance agency that specializes in insuring churches. The main objective of the agency is to provide risk management to its clients. It begins from contact with the client to present the proposal and then providing adequate coverage for the risk at a competitive premium.

Benefits

A consumer must see the benefits of service to purchase a product. At Sanford Insurance, the church insurance carrier provides niche coverages for ministries. Its services and products are innovative with the top of line coverage options that many carriers are unable to offer. Both the agency and carrier are constantly careful for new risks that may not be covered under the current product. In an effort to stay ahead of the competitors, the firm has a research and development team that specifically studies and implements new coverage offerings to its clients and prospects.

Functionality is important in the insurance industry. For clients to buy a product that is not visible unless there is an insurance claim, the customer must see the coverages on the policy documents. The product sold to the consumer must be of high quality as well. The client must perceive the agency as brand loyalty. Additionally, the customer must be assured that they will receive quick response times and adequate service.

The policy provided is specifically tailored to the churches. The agency endorses basic coverages and policies whereby each church or ministry is able to cover risks based on its operations. Different deductible options, bond amounts, liability limits, and building coverage offerings are available. A larger ministry will need a more comprehensive policy unlike a smaller ministry. Flexibility in coverage options and changes are vital. If a ministry purchases another building, Sanford Insurance must quickly add the coverage to the policy the same day and even sometimes the same hour if it is for closing.

Implementation

Sanford Insurance can implement Supply Chain Management (SCM) by hiring and training an educated sales force because they are valuable to the inside customer service representatives as well as the outside sales agents. The training can vary depending on the job duties necessary for employees. The agency must maintain high retention rates and risk management capabilities to maintain the success while representing the second largest church insurance carrier in the country. Reports and quality control are important for the SCM process as well.

Biblical Integration

In 2nd Corinthians 9:10, the scripture says that “He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness.” Growth and sales increase in any organization is guaranteed, if supply chain management strategies are put in place from the beginning. However, if an organization does not put effort into SCM, it will face difficulties growing. Sanford Insurance must review the SCM to ensure that it is suitable to meet the needs of consumers now and in the future. Changes are necessary sometimes depending on competitors’ economy, and the financial stability of the organization.

Six Sigma

Description

Six Sigma is defined as a group of tools and techniques that facilitate the improvement process. When this practice is utilized by Sanford Insurance, it can minimize the probability of the risks occurrence in the insured churches and ministries. Nevertheless, with the advancement of inefficient techniques and tools, six sigma is viewed as appropriate for the sector of services. The clients of Sanford Insurance are now aware of being offered quality service. This makes the company put forth improvement techniques in order to offer their consumers quality service. By implementing the Six Sigma, Sanford Insurance can be able to give quality services to their customers, who are mostly churches and ministries, at affordable prices.

Benefits

Six Sigma can help Sanford Insurance in reducing costs as well as improving the quality of services that it provides to its clients. It can, therefore, enable the company to utilize the orderly tactic that will help in preventing the occurrence of errors. Furthermore, six sigma will be instrumental in assisting the managers of Sanford Insurance to make knowledgeable decisions based on statistical information. Managers of this insurance no longer depend on their individual perceptions for the provision of the level of service as they promised to churches that they insure. Six sigma also helps to build customers’ loyalty, and ensures the reduction of costs. The approach has helped Sanford Insurance to join the gap between planned approach and the actual one by means of its provision of process-performance measurement tools.

Implementation

Six Sigma implementation can enhance profitability, as a result of increment of quality services offered to consumers. Successful six sigma implementation requires the support of Sanford Insurance policymaking management, training, and enough data for successful decision-making within the agency.

Biblical Integration

John 3:16 states, ”For God so loved the world that he gave his only begotten son that whoever believes in him shall not perish but have eternal life. For God did not send his son into the world to condemn it, but in order that the world might be saved through Him.” Six Sigma is not applied in Sanford Insurance company with the aim of condemning the management tools but is designed in a way that if followed to the letter, the company will not perish but increase its profitability and managerial strength.

Innovation

Description

Innovation is described as the procedure of applying or executing new ideas with the aim of creating value to an organization. By nature, Sanford Insurance, similarly to other insurance companies is risk-averse. When annual net profit of any insurance company drops to 12%, it means that the growth is minimal. This demands for innovation in the company that will help it to make long-term profits. It is important for Sanford Insurance to scan the subsequent difficult technology. Innovation does not have to be troublesome to be of effect to the organization. Whether increment or difficult, innovation is supposed to be part of the company’s culture so that it can bring success. Insurers should consider how they acquire innovators to improve the service they offer to their customers.

Benefits

First, innovation can make Sanford Insurance solve its problems so that it can produce creative answers. When the insurer thinks outside the box, they might formulate a solution that no one thought of before. Additionally, innovation can bring an increase in the productivity of the agency. In order for Sanford Insurance to increase productivity, they may require innovation through the usage of new ideas to improve the production. Innovation also helps to detect unique qualities of an insurance company. If Sanford Insurance will be innovative, it will attract more clients due to its good reputation. Sanford Insurance needs innovative ideas that pursue the consumers to remember it. Once it gains a special process, it should market itself in a way to attract clients or other non-insured churches and ministries. More so, innovation can help Sanford Insurance to win any competition. With a little creativity, the insurer can come up with better methods of satisfying their clients and market their insurance business.

Implementation.

Innovation is known to nourish any organization’s growth. If Sanford Insurance involves itself in innovation, it can realize future success and also sustain its feasibility in the global economy. Though innovation is extremely important to an organization, Sanford Insurance should take the risk and engage in it due to the stiff competition and constant need for survival given that innovative insurance can be more dynamic than non-innovative insurance hence the need for Sanford Insurance to implement it.

Biblical Integration

Mar 2:21-22 says ”No one sews a piece of unshrunk cloth on an old garment. If he does so, the patch tears away from it, the new from the old and a worse tear is made. No one puts new wine into an old wineskin; if he does, the wine will burst the skin, and the wine is destroyed, and so are the skins. But new wine is for fresh wineskin.” This applies to Sanford Insurance, whereby it is discouraged from combining old ways of doing things and new ways, but to be more innovative, and come up with clean ideas and implement them.

Customization

Description

Customization is the modification of service to better suit the client. The era where customers used to run behind a unique service for their luxury is long gone. Today many insurance companies have to adopt the provision of price differentiation. That is the point where customization weapon comes in for insurance agencies. Each customer is special, and he or she comes with a different set of needs. If Sanford Insurance comes up with a way to identify those specifications and also the ability to cater for them, they will definitely have the recipe to win more consumers in the competitive markets.

Benefits

Through strategies such as mass customization or collaborative customization, Sanford Insurance stands at a competitive advantage for the reasons that they will win the customers who cannot articulate what they want easily and therefore grow frustrated when they are forced to choose from a plethora of options. This will enhance the expansion of consumer base.

Implementation

Sanford Insurance can implement customization by establishing collaborative customizers whose sole purpose is to conduct a dialogue with the agency’s individual clients and helping them articulate their desires and necessities to identify the precise offering which fulfills those needs such that they are able to make customized services for them.

Biblical Integration

Introduction of a new way of doing things in an insuring organization, for example, Sanford is always difficult. Human nature is to fear and even resist change. Joshua 1: 9 says that God is in the midst of everything, ”I command you to be strong and courageous. Do not be afraid or discouraged for the Lord your God is with you wherever you go.” This should encourage the Sanford Insurance to customize, or tailor services to customer specifications in order to make the organization better. The agency should provide only what the customer specifically wants. Hence, it had better be dynamic so as to facilitate it to consistently adjust according to their customers’ specification.

Just-In-Time

Description

Most of the companies in the world are beginning to change their strategies with a concept of ”just-in-time”. This is normally done in terms of services they usually lender in inventory and even marketing. If it narrows down to the usage of just-in-time, Sanford Insurance can exclude any nonproductive and extravagant marketing practices. Instead, it focuses on the creation of opportunities for customers and shaping the customer experience. Hence, the firm should make sure its workforce is ‘just in time’ in case it is needed by the customers in any way. The company also has to make sure that it executes its responsibilities in the best way possible and without delays. Such a behavior will automatically attract potential churches and other related ministries to the insurance.

Benefits

There are many benefits if Sanford Insurance uses just-in-time concept. The total cost of expenses is relatively lower with a JIT system than when the insurer uses other methods because of lower expenses, less theft and minimal loss to the entire organization. The agency can charge higher particularly, for the urgent orders that need to be rushed. Just-in-time allows for flexibility with the capability to service a broader range of customers because only a few resources are needed for internal controls when setting a system that is designed to use JIT. Such gives an advantage to the insurance organization by saving time and money in the long run.

Implementation

Sanford Insurance should implement the usage of just-in-time policies. This way, they can provide services to churches, which have already insured themselves with it. By providing such client with services at the right time when they need them, the agency will satisfy its clients. The customers will talk to other members of other non-insured churches about the availability of Sanford Insurance company, hence bringing new clients to the business.

Biblical Integration

1st

Timothy 1:17 says that, ”Now to the King eternal, immortal, invisible, the only God, be honor and glory for ever and ever. Amen.” and 2nd Peter 3:8 says that, ”But do not forget this one thing, dear friends: With the Lord a day is like a thousand years, and a thousand years are like a day.” As eternal being, God is never limited by the time the way human beings are, He reigns beyond time. The two verses imply that people should dedicate all their time to God and know that every minute is precious to them in helping others so that they can glorify God. Sanford Insurance company should, therefore, respond to clients’ problems in time in order for its service rendering to be efficient.

Customer Relation Management

Description

Customer relation management (CRM), refers to tactics practices and technology that Sanford Insurance company can use to analyze and manage information throughout the entire partnership span with a client aiming to increase customer service relationship and driving sales growth. Maintaining a good client relationship is driven by satisfying the customers fully without complaints. Example is sharing important information with them, satisfying the customers fully when in need, without delay, and using the six R’s management right time, place, quality, customer relationship

Benefits

The first benefit is improving the client’s experience. Nowadays, clients anticipate a smooth experience with the Sanford Insurance from the beginning of the contract to the end. All that they need is the insurance to know who their clients are without necessarily keeping them waiting. An ideal customer relationship management enables a company in the identification of its clients, looking at their needs and subsequently suggesting additional service that goes hand in hand with their profile. Staffs in Sanford company are able to know they are Christian-based and dealing with churches and related ministries from the very beginning and, hence making them more efficient and productive so that clients can enjoy better customer service.

Secondly, customer relationship management can make Sanford Insurance focused on marketing efforts. CRM can provide Sanford insurer with a whole picture of sales of their service and their existing customers. When the company acquires that information, it can be able to target multiple churches with potential for future sale of their services. Instead of opting for mass market approach, this management allows the insurance company to perfect efforts in marketing in order to yield more sales of services.

The third benefit is that customer relationship management can lead to efficient cooperation and coordination. When Sanford marketing, sales, and customer service share a common approach to customer relationship management, they bring accord to one another. Instead of being separate functionally, there is cohesive operation of the organization. Sanford Insurance departments will know what their goals are, and how to work hard with the aim of attaining them.

Another benefit is that good customer relationship management yields to more administrative support. Even in organizational settings there are significant tasks that must get done. Keeping of proper records by the Sanford Insurance, proper scheduling of appointments, tracking follow-ups and all-important roles in the sales team and also the functions that needs cautious attention to particulars.

Implementation

There has been the main change in which companies nowadays consolidate themselves as organization change from the product-based, to the customer-based. Sanford Insurance, therefore, should emphasize on the maintenance of a good relationship with their clients. A key change is an advertisement of customer relationship management that is pointed out by an information system that promises to develop implementation or customer relationship.

Biblical Integration

From a Christian point of view, John 4:4-9 reveals the story of the Samaritan woman. She was at the well to fetch water, and Jesus requested her for water since He was thirsty. Not until the Holy Spirit quenches a person’s soul and mind that people will walk around in emptiness. Business people should be informed that without God in customer relationship management, human beings will never be quenched or satisfied. If a customer likes a business offer, he can just say through words of the mouth. John 4:29 expresses the power of words, that when the Samaritan woman was inspired by Jesus, she went all over streets in Samaria telling people she has seen Christ, ”Come, see a man who told me everything I ever did. Could this be the Messiah?” Through her words, she drew a crowd to Jesus. Consumers usually suggestions and preach a good reputation of a particular company hence attracting new clients to that organization.

Total Quality Management (TQM)

Description

The ‘total quality management’ encompasses the wide efforts of an organization to install and make permanent at working environment or climate which allows it to progressively improve its ability to deliver services and products of high quality to the consumers. Through the total quality management, the Sanford Insurance had made continuous efforts to ensure that it commands a long-term customer loyalty through consumer satisfaction. The agency puts more efforts in client satisfaction as it believes that customer’s dissatisfaction has the capability of spreading bad word of mouth and consequently spoil the good long-term relationship with its existing as well as the potential clients. To expect loyalty in return, the Sanford Insurance has been ensuring that the quality of its services is improved as time passes. The agency has structured efforts whereby it collaborates with its employees to ensure that there is a continuous improvement in the quality of their services through proper research and feedback. For total quality management to be realized in the Sanford Insurance, a joint effort of the workforce, staff members and management is inevitable in order to meet and exceed the level of customer satisfaction.

Benefits

One major benefit of the total quality management is that it ensures superior quality services. In this regard, quality will serve as a crucial parameter that differentiates Sanford Insurance from its rivals. The superiority in services is achievable mainly because the total quality management tools ensure changes in the processes and systems, which directly affects the quality of the service by ensuring that they exceed the customer’s satisfaction. Another benefit of total quality management is that the Sanford Insurance may gain is customer loyalty as a result of client satisfaction. It is apparent that a business cannot survive by only acquiring new consumers; instead, loyal customers are the ones who sustain an enterprise. The only way clients may return to seek Sanford Insurance service is if they are happy and satisfied with the services they were provided with; thus if it fulfilled their needs and expectations.

Helping the firm to create and design a service that the consumer desires and wants, is another key advantage of the total quality management. More so, it will benefit the Sanford Insurance primarily because it brings about higher productivity and increased revenues for the organization. By enabling the employees to work closely with incorporate Just-in-Time philosophy and suppliers, the total quality management will be valuable to the Sanford Insurance as it helps reduce time wastage in the delivery of services.

Implementation

The Sanford Insurance company can implement the total quality management by ensuring that every single employee works towards improving the work systems, services, processes, and culture to realize long-term success. The implementation can be achieved in five stages, namely plan, do, check, and act. In the planning stage, the employees are offered a platform where they raise all their queries and problems that they wish should be addressed. After coming up with the queries, they are then delegated to collect the relevant data through research with the aim of finding solutions to all the problems. In the Doing phase, these workers develop solutions to all the problems they raised in the previous stage. This is then followed by the devising and implementation of strategies to solve the problems encountered by the workforces. The efficacy of the process is measured during the checking phase. In the Acting phase, the employees can then document their outcomes and brave themselves to address other issues. This will ensure continuous quality of services offered to the customers by the Sanford employees.

Biblical Integration

In 1st Peter 4:10-11, the Bible says that ”each of you should use whatever gift you have received to serve others, as faithful stewards of God’s grace in its various forms. If anyone speaks, they should do so as one who speaks the very words of God. If anyone serves, they should do so with the strength God provides, so that in all things God may be praised through Jesus Christ. To him be the glory and the power forever and ever. Amen.” This scripture implies that Sanford Insurance fraternity should be committed to providing the best services to their customers and embrace it as a gift that they have received to serve others through total quality management.

Logistics

Description

Logistics is the planning and flow of information in the agency. Maximizing efficiency and minimizing costs is ideal for all organizations. Sometimes this concept can be difficult to achieve if the organization is not measured or reevaluated regularly. An excellent flow of information from the agency itself to the insured ministries is therefore important.

Benefits

A well-coordinated logistics process leads to high productivity. When Sanford Insurance practices excellent logistics systems, the agency will expand both regionally, internationally and globally. The firm will become more dependent on supply chains that are effectively organized including sophisticated logistics. Logistics hence helps to improve the efficiency and the profitability of organizations. Logistics plays a crucial role in supply chain management. It is used to coordinate and plan movements of services effectively.

Secondly, logistics helps organizations to create value. Providing value to an organization’s customer does not necessarily mean quality and quantity but also means availability. Sanford Insurance company should be readily available in times of need by their customers. Intelligent agencies consider logistics as a crucial tool in the creation of values to customers.

Another point is that logistics helps to improve efficiency while reducing costs. As a result of global trade stiff growth, logistics has now been viewed as the heart of all supply chains. Sanford owners have realized they can make a partnership with owners of other companies that offer transportation. When Sanford starts to use such services or outsourcing transportation, they will end up increasing their overall efficiency of the business. By working with these transportation companies, insurances will improve their efficiency in the faster delivery of their services to their clients. Also, logistics can help Sanford Insurance to deliver their services to their clients at the right time and place. It is also the key to success in the supply chain because the company will build and maintain a good reputation or the public image.

Implementation

A point has been reached where many insurance companies understand the total distribution concept and the need for the integration of logistics in managing the service provisions of insurance companies to their clients. This recognition is not globally known, but it might be right to claim that the level of awareness of the logistical importance has improved.

Biblical Integration

According to the scriptures, true knowledge comes from God. True knowledge for logistic management application come from God. Sanford Insurance should always trust Him to shower it with His true knowledge for the smooth running of logistics.

Conclusion

Sanford Insurance is a Richmond, Virginia based insurance agency whose primary objective is to insure churches and related ministries. As an insurance agency, Sanford engages in or rather offers services such as offering property, liability, commercial auto, workers compensation and numerous church specific coverages to protect the church and related ministries. As an insurance company, there are eight different key concepts that are applicable to Sanford agency. These include Supply Chain Management, Logistics, Six Sigma, Innovation, Customization, Just-In-Time, Customer Relation Management, and Total Quality Management. A critical analysis of each aspect as it concerns the Sanford Insurance under the lenses of description, benefits, implementation and Biblical integration has brought to light a lot if areas of excellence, and areas that the company could venture in order to improve.

Appendixes

Appendix 1: Customer Relation Management (CRM).

Appendix 2: CRM

Appendix 3: The CRM Process Framework.

Appendix 4: The Supply Chain-Logistics Cycle

Appendix 5: Supply Chain Management 4PL

Appendix 6: Total Quality Management