Logistic deals with transportation of goods from supplier to the user. It has been of competitive advantage as firms struggle to get the right stuff in the right place at the right time. In the case study on Walton Seed Company
Logistic system may be developed to improve the season’s sales. Since climate always do change, it will also affect the production then the problem can be addressed by changing the mode of productions to respond to the changing environment. Before the period or season when goods are demanded in large quantities reaches, stocks should be kept so that during time of demand the goods will be available to the client.
The specific issues to be considered here before selling to large merchandises are the: liquidity implication; managerial recommendations for avoiding liquidity problems should be checked. The other issue is the duration and the period the goods would be required. Standards of performance that they can use to measure customer service are: one is the response of the client. If the client admits that the services provided is good then the performance is okay.
The quality of staff in any organization may be used to measure customer service. Experienced staff provides good services.
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Alternatives of E-commerce which is known as the electronic commerce where internet is used are: Ronald(1994), “designing and implementing new surveys, adding questions or supplementing the new existing survey, engaging in research on the subject of Ecommerce measurement and marketing data for possible future use”.(pg64).
The introduction of the new policy by the lots-food company may have resulted into the following benefits and shortcomings. To begin with the benefits, the new system would ensure delivery of goods at the right time at fixed intervals. This would bring some order because clients will now know when to get their goods. Another benefit is that it will improve the efficiency of work performed. If sales representatives are allowed to handle the orders, they may end up making some changes in it. Transparency is therefore initiated. The new policy would benefit the client in that transport costs would be lowered since they won’t be moving to the head office.
The shortcomings of the new system are one: clients may feel that they are denied the opportunities of interacting with the sales representatives. Another one is there will be risk of losing customers because they will move to those who can supply them with goods whenever they are in need of. Demand is always determined by external and internal forces.
Some of these factors cannot be controlled like environmental and climatic changes. These entire shortcomings come as a result of lack of established logistic department which should monitor the movement of goods so that none of the sides is inconvenienced. Having goods shipped at fixed interval is okay because unnecessary loss would be minimized. But on the other side it will lead to some loses especially when few goods are to be transported.
A system which will provide services to lotsafoods customers and improve sale together with building good relationship with wholesalers is very simple. A well established logistic department should be established. This would ensure customers are treated well by getting their goods in the right time. To reduce cost and respond to customers need quickly, redesigning production and processes is very important to meet the challenge. Therefore the integration of the supply chain offers many opportunities to improve customer service and eliminate unnecessary costs.
Ronald, H. (1994). Delivery of Services. New York Free Press pg 64 – 78