The scenario: Good Food Limited distributes a 100-item product line of canned vegetables, fruits, and condiments...
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The scenario: Good Food Limited distributes a 100-item product line of canned vegetables, fruits, and condiments to wholesalers in several states. Good Food introduced a new customer order policy that was designed to improve their service to wholesalers and the effectiveness of their sales representatives. This program was based on two features, 1) freeing sales representatives from order taking, and 2) receiving orders from wholesalers on the basis of a predetermined schedule. The company's sales representatives previously had accumulated wholesale orders until they had enough volume to make up a truckload; then they would send the orders to the head office. Under the new program, they were no longer to process customer orders. Wholesalers were to email their orders directly to the head office according to a fixed schedule. If they missed their fixed date, they had to wait for the next one. By eliminating the need to prepare orders, Good Foods hoped to increase the number of calls that the sales representatives could make. They also wanted the sales representatives to spend more time determining sales patterns and the effect of various sales promotions. Unfortunately, many of the wholesalers did not follow the predetermined order schedule. They were not accustomed to having someone tell them when to order, and some of them objected to the regimentation and lack of flexibility. Others had become dependent on the sales representatives to determine what their requirements were and believed that the new program made more work for them. They did not like waiting for 2 weeks if they missed the deadline. When a stock out occurred, they could lose from 20% to 50% of the sales of Good Food's products. Good Food also suffered, because wholesalers and retailers carried several product lines of other brands. When they ran out of Good Food brands, they could sell other brands. Good Food has no logistics department to deal with its distribution activities. In the past, its sales representatives arranged for the necessary transportation. When they had accumulated orders worth a full truckload, they would send the orders to the Good Food's head office. To expedite shipment for an anxious wholesaler, a sales representative in one area would try to pool orders with another sales representative of a different area. However, the introduction of new practice meant that head office would ship according to fixed schedule and arrange shipment to the wholesalers, even if the orders totaled less than full truckload. Your task: Explain what you think about this situation. Discuss the benefits and drawbacks of Good Food's new order management system. Include any recommendations that you might have for them. • Suggest warehousing solutions that Good Food could use to improve the delivery of goods. • Relate your suggestions to the text or other resources we have examined in class, where possible. The scenario: Good Food Limited distributes a 100-item product line of canned vegetables, fruits, and condiments to wholesalers in several states. Good Food introduced a new customer order policy that was designed to improve their service to wholesalers and the effectiveness of their sales representatives. This program was based on two features, 1) freeing sales representatives from order taking, and 2) receiving orders from wholesalers on the basis of a predetermined schedule. The company's sales representatives previously had accumulated wholesale orders until they had enough volume to make up a truckload; then they would send the orders to the head office. Under the new program, they were no longer to process customer orders. Wholesalers were to email their orders directly to the head office according to a fixed schedule. If they missed their fixed date, they had to wait for the next one. By eliminating the need to prepare orders, Good Foods hoped to increase the number of calls that the sales representatives could make. They also wanted the sales representatives to spend more time determining sales patterns and the effect of various sales promotions. Unfortunately, many of the wholesalers did not follow the predetermined order schedule. They were not accustomed to having someone tell them when to order, and some of them objected to the regimentation and lack of flexibility. Others had become dependent on the sales representatives to determine what their requirements were and believed that the new program made more work for them. They did not like waiting for 2 weeks if they missed the deadline. When a stock out occurred, they could lose from 20% to 50% of the sales of Good Food's products. Good Food also suffered, because wholesalers and retailers carried several product lines of other brands. When they ran out of Good Food brands, they could sell other brands. Good Food has no logistics department to deal with its distribution activities. In the past, its sales representatives arranged for the necessary transportation. When they had accumulated orders worth a full truckload, they would send the orders to the Good Food's head office. To expedite shipment for an anxious wholesaler, a sales representative in one area would try to pool orders with another sales representative of a different area. However, the introduction of new practice meant that head office would ship according to fixed schedule and arrange shipment to the wholesalers, even if the orders totaled less than full truckload. Your task: Explain what you think about this situation. Discuss the benefits and drawbacks of Good Food's new order management system. Include any recommendations that you might have for them. • Suggest warehousing solutions that Good Food could use to improve the delivery of goods. • Relate your suggestions to the text or other resources we have examined in class, where possible.
Expert Answer:
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
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