ABC Company Case Solution & Answer

ABC Company 

Situational Analysis

Question No. 1

According to the data provided in the case, the following are the brands that could not keep themselves aligned with the company’s 2% monthly threshold. We have suggested some strategies that could help the following brand partners to keep themselves aligned with the suggested threshold.

• GHI

According to the data provided, the late orders percentage from GHI consecutively crosses the 2% limit. Although from the data it is visible that from this brand, the company has achieved the highest sales in the year 2021. As per the policies, if the company turns off their listings from its websites, then it may negatively affect the company’s sales. So turning off the listings of GHI from the company’s website is not an option in this case.

However, the company could look for the reasons that have caused GHI to take longer than their handling time. The company could also provide possible assistance to GHI which could help them maintain the set time limit for handling. For e.g. there could be reasons like poor transport management, the company could help the partner and provide transport assistance to GHI so that the issue could be resolved.

• JKL

According to the data, JKL is a new brand that has been introduced by the company in the current year. From the data, it is visible that the brand has crossed the threshold on in the month of Feb 2022. As per the policies if the company turned off the listings of JKL then it would not affect the company’s sales and the company should comply with its rules to give a warning to JKL that they should resolve their issue and keep aligned with the threshold in the coming months.

• MNO

From the data, it is visible that MNO is a brand partner out of the list which had sold the highest number of units via the company’s website. So turning off the listing for this brand would also affect the company’s sales. In order to resolve the issue, the company could order the inventory from the brand in advance because the brand sales the highest units, so the maximum possibility is that all the ordered in advance products would be sold out timely. If the company orders the products from this company in advance, then it would save a lot of time for the company and the products would be transferred to the end customers immediately.

• PQR

From the data it is seen that the units sold by this brand in the year 2021 via the company’s website are not that high and it definitely would not affect the company’s sales that much if its listings are turned off from the company’s website. So the company could conveniently comply with its policy in case of this brand and turn off their listings for some time as a warning. However, the company could provide possible assistance regarding the issues that the brand is having, which led them to take extra handling time.

Question No. 2

• GHI

If the assistance provided to GHI does not work and it still crosses the 2% threshold monthly, then it could affect the company’s customer’s experience. However, to avoid this situation, and to satisfy its customers, the company could introduce discounts to its customers with late deliveries up to Rs. 50/- . These discount costs could be recovered by the company from the charges that it would apply to the brand per each late order. This way the company’s customers would be satisfied as they could get their orders at low prices because of discounts.

• JKL

If the warnings given to JKL does not work and this brand still cross its threshold than it is suggested to the company to wait for a few months and gather data to determine the value that this new brand is providing to the company. If the brand acquires a good value for the company, then the company should look for the reasons that lead the brand to take longer handling time. In that scenario, the company should also help the brand and provide possible resources that could help them to decrease their percentage of late orders. With low value provided by this new brand to the company, the company should keep following its policies of late orders for this brand.

• MNO

It could be possible that the strategy of ordering the products in advance from MNO does not work, such as the company could find it difficult to handle or store the products ordered in advance, or the products ordered in advance could not be sold out. In that case, it is suggested to the company that it should not give up on the strategy of ordering in advance from this brand. However, the company should do efforts to get almost accurate sales forecasts. It should also not order in advance the products in bulk quantity. Advance ordering the products from this brand in small quantities would help the company manage these products efficiently. And in case of low unit sales, it would also not affect the company severely.

• PQR

Since the annual units sold by this brand are not so high, if the possible assistance provided to the brand does not work and it still continues to cross the threshold, then it is suggested to the company to make strict polices for this brand. Like the company could increase the charges per each late order. From the data, it is visible that the brand is crossing the threshold from two consecutive months. If it continues with this brand, then it could affect the company’s customer experience badly. Hence, more strict actions are necessary in this case….

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