Supply chain management 6th edition 3rd chapter: Mark & Spencer has currently ou
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Question
Supply chain management 6th edition 3rd chapter: Mark & Spencer has currently outsourced parts of its delivery services to a logistics provider. You have been asked to advise when the company should choose to operate its own account operation to provide delivery services. Supply chain management 6th edition 3rd chapter: Mark & Spencer has currently outsourced parts of its delivery services to a logistics provider. You have been asked to advise when the company should choose to operate its own account operation to provide delivery services. Supply chain management 6th edition 3rd chapter:Explanation / Answer
Generally company will outsourcing for its delivery services when it is very difficult to handle by it own or it is burden to deliver the goods to customers on the time. This kind of problem faces by every organisation, especially in festival seasons. In festival seasons sales volume will increase, but customers require products on the time to celebrate the festival well. So company has to take each and every order and provide best service to customers.
It is not only matter of profits and it will impact on goodwill of the company also, if company fail to deliver goods on the time, it will loss somany customers.
As mentioned above marks and Spencer also faced same problem, Christmas is very important festival to people, people wants to spend time very happy by giving valable gifts to their friends and family members. So, they ordered for products using Internet.
Here, , company also got plenty of orders but it struggled to deliver the goods on the time, generally delivery period is 4 to 5 days, but during festival it increased to 10 days.
So to avoid customer dissatisfaction, this distribution centre choose outsourcing for delivery services
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