On Time Delivery Service Case Study

Running Head: CASE STUDY OF ON TIME DELIVERY SERVICE S ERVICE

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Abstract This paper covers the case study of ‘On-Time ‘On-Time Delivery Service’, Service’, which is a delivery company based in Sydney, Australia. The case shows the problem faced during their operation in this present context of high level of demand of customers. The problems discussed in this case are both internal like attitude, motivation to external ones like competition. Additionally, the paper discusses why the problem existed and the major solutions that the company could potentially adapt in order increase the sales number that they have previously lost in past six months.

CASE STUDY OF ON TIME DELIVERY SERVICE

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A company which has the capacity to deliver goods quick and on time is a Key advantage to have to increase sales. With growing information technology and the machines that are supporting the sales, customers now demand more efficient purchase process and quick delivery at given place and time. The competition to meet their high level of demand can be sometimes problematic for companies both internally and externally. In the given case, we are talking about On-Time Package Delivery which is a Sydney based delivery service company. compan y. The company however ho wever has been overshadowed overshad owed by b y big delivery company names such as UPS, DHL and FedEx (Mark & Greg, 2011). But despite this, OTPD has been able to capture a niche market by focusing in express inter-city package delivery. On-Time Package Delivery Company’s Company’s believed from very early point that building strong sales force gives competitive advantage for the compan y. So, over the years, they have covered four sales districts which are all major cities of Australia. They have been able to achieve this by promoting sales force. However, for the past six months the sales hasn’t been hasn’t been on par with what it was previously (Mark & Greg, 2011). These problems and solution to the problems are analyzed and explained carefully below. Promoting Sales Force

Going through the case, we can clearly understand the company’s company’s motive and intention with the sales force. To begin with, sales can only increase if the sales force are motivated. Providing both financial and non-financial benefits to sales representatives can keep them interested and motivated at work. And that is exactly what we see for this case.


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The company has total of 45 sales people. These sales people are calcified in two groups: sales representative and key account managers. Sales representatives are responsible for building relationship with customers and generating new business. Key account managers are key account managers are responsible for increasing sales along with customer satisfaction (Mark & Greg, 2011). The policy of the company makes is to measure and provide benefits and compensation for deserving candidates. The work of both categories of employees is measured for this. In case of key account managers, the success is measured in terms of sales amount of each large account and customer satisfaction score. The key account managers being the older of the two category, means, when the position for a key account mangers is open, the opportunity is provided to current sales representative to the most deserving one. Each member of the sales force is provided with Laptop, Cell Phone, and car for them and is also enrolled in retirement plan. Sales representative earn between AUD 81,000 – 81,000 – 92000 92000 yearly while, Key account managers earn between AUD 92000 – 95000. Thus, the company promotes its sales people through promotion and financial benefits (Mark & Greg, 2011).

Reasons and Issues of OTPD sales force Melbourne

Among many people Wayne called, first was Dan Gunther, district manager of Melbourne. From the conversation in the case, we can understand that the Melbourne, which was previously the company’s company’s number one sales district for two – three consecutive years has not


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increased. Overall sales of the district is flat even if the best sales representatives their are working hard and meeting their goals. Wayne therefore, made a call to ask about why sales were not growing for last six months. The issue at Melbourne was that key account manager like Judy has been slow and not as responsive in answering questions of the emplo yees (Mark & Greg, 2011). To sum up all, the conversation shows that the major issues persisting in Boston was related in individual level, relating to attitude and motivation (Mark & Greg, 2011). From my understanding, there seems to be lacking a better performance to feedback evaluation metrics of sales people. This along with lack of better motivation, financial as well as non-financial both can be the cause of the problem. The discussion in this part shows the importance of information and proper CRM system in providing critical data to management direction and operation of the business bu siness unit. Perth

Second Wayne called Carol Klein, key account manager in Perth. The reason in calling her was that the sales numbers of Perth were down a little. Ben Gardner, local district manager says in the case that the reason for this is that she is having a hard time to introduce the new product values and service to the customers. But after calling Carol, Wayne finds out that the real reason behind her performance lag is because she is having to work as a managers in Perth as well as mom to her daughter Alice (Mark & Greg, 2011). So, she is having a difficult time to manage both.


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Clearly, here, the problem exists in work versus family conflict. The key issues here are time management and role conflict. The issues of role conflict and uncertainty often poses great problem in the performance of the employees. As we understand from the discussion, the performance of Carol was previously, really good. She used to be among the top performers of the region. And now she has to balance out the two life she lives at home and at office. This has significantly pulled down her p erformance. She points this issue out by saying that it was as if “… “… being torn between doing an outstanding job at OTPD and being a mom to Alice (Mark & Greg, 2011).” 2011).” Like Jacobson, managers want to get best out of their employees, but situation like this often can lead to conflict of choice and ethical concerns for the solution of these kind of issues (Marchese, Bassham, & Ryan, 2002). Brisbane

Third time, he called Mike Wagner to know about the general situation of the sales. The reason for calling was about why the sales were down in Brisbane for the last six months. And upon calling Wagner, he found out that the issue existed in the terms of competition. A similar company called Gold Package Delivery was offering same services at much lower competition. Because of this the sales of the region were low (Mark & Greg, 2011). 2011 ). The major problem here is definitely in terms of competition and information flow. As Mike Wagner answers Jacobson, he believes that additional information and situation of the market could definitely help him to take necessary actions to overcome this problem (Mark & Greg, 2011).


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However, important thing to consider here is that cases like this can quickly elevate to a serious problem if two companies are engaged in price war. Price war is when two or more companies are involved in reducing prices in order to gain bigger share of market and increase sales. Doing this however could lead to additional loss to the company (Hilton, 2012). So, manager at this point have to strategically take actions only after getting a clear understanding of the situation.

Solution of the issues:

After looking over all the problems in each of the three cases of sales district, we can see that main problem exists in training, motivation, benefits and information flow. The solution of the problems for each of the case is discussed below: Melbourne

In case of Melbourne the solution to this can be active performance tracking, through performance measurement tools, CRMs and provide feedback and solutions. As sales people peop le are individually facing problem in motivation and work, changes in terms of policies, benefits and compensation should be considered. Sometimes, what employees seek might not be financial benefits, but opportunities and freedom for their work and creative thinking space (Dao, 2005). The case, it clearly mentions that the employees are provided with Car, Laptop and Cell Phone and reasonable salary as compensation. But as per the policy the position for key account manager is only open when someone retires. This means even if employees work hard the possibility of promotion and opportunity is only provided when position is open. This could cou ld well


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be the possible reason for the lag in performance of Craig McMillan. Wayne Jacobson as a manager has to understand this and take necessary actions. McMillan has not been very efficient in responding the requests and information to the customers. This could also be a problem in competence. He might not be capable enough or might be in the need for additional training. As per the complaints received in the office, there should be reasonable solutions need to devised including trainings to the sales force. Additionally the sales staffs could be led to face quizzes or tests to help the company know that they understand the product and are able to well communicate its features to the customers. They should be invited to answer questions that are frequently asked by customers or answer the complaints of the customers. As face of the company who directly interact with customers, company needs to make sure that they are ready and motivated enough to face the customers to solve all their problems. Perth

Sometimes managers may try to tackle this work family conflict by giving less job responsibility to the employees which honestly is quite unethical and rude in some way. As Nannitee Fondas (2014) points out in her article in HBR, the problem of Work and Family conflict should be the responsibility oblegation of the company. It is understood that it is the responsibility of the employers to provide a flexible working environment for their employees to work effeciently. The solution to this problem could be change in workplace time schedule to prevent employees, especially those who are also parents to who may feel stressed, overwhelmed and maxed out. Often companies provide bonuses and health care and insurance for their


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childrens for this ver y secific cause. In case of Carol, some of the implicable changes could be additonal holidays, salary bonus and health and educational care for Alice. Additionally, as employees of this nature commonly feel stressed, they need to be provided with coaching and trainings sessions that can help them learn how to recharge themselves and regain energy even in their busy and hectic schedules. They should be provided with free times and holiday trips/tours to keep them comfortable and creative in their job. Brisbane

Competition in a market is a given. What they need to focus now is how to solve the problem of competition. In a situation like competition, information flow is essential to gain advantage. A proper CRM and information sharing system can help promote creativity and engagement increasing the performance of the sales people in this case (Li & Sandino, 2017). Often times, answer to the problem like price competition is quality. If OTPD is do decrease the price as well, there is no telling if competitors will decrease the price again. In such case, the actions we will take could be useless. By focusing on quality of the service, we can compel people to rethink their decision in choosing their competition. For this, companies can use CRM data, contact key customers and know their demands, even conduct research in order to know the difference in product from other competitors. Additionally, this information about competitors should be properly communicated to the sales force. Until and unless the sales force knows the difference in products/ services they offer and their competitors offer, they will not be able to defend the weaknesses or advantages of their product to makes sales. A solution for this can be creation of internal online information flow system to communicate all the information about the competitors to the employees.


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Conclusion

To conclude all, the case of On-Time Delivery Service shows a common problem faced in a package delivery in the present context of competition and invention that demands highest level of customer satisfaction. The problem shown in the case is both internal and external, from individual level to group level problem. Solving issues like motivation, work family conflict and competition are among the major priority that the company needs to take immediate actions on in order to increase the sales number.


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References

Dao, F. (2005, Sept). Why Can't Sales people be more creative. Inc creative. Inc Magazine . Magazine . Fondas, N. (2014). Your Work - Life Balance Should be your company's problem. Harvard problem. Harvard Business Example . Example . Hilton, C. W. (2012, Sept). Avoiding Price Wars. The Wiglaf Journal . . Li, S. X., & Sandino, T. (2017, May 1). Effects of an Information Sharing System on Employee Creativity, Engagement, and Performance. Research Performance. Research Chicago Booth . Marchese, M. C., Bassham, G., & R yan, J. (2002, Oct). Work-Family Conflict: A Virtue Ethics Analysis. Journal Analysis. Journal of Business Ethics , Ethics , pp. 145 - 154. Mark, J., & Greg, M. (2011). Sales Force Management: Leadership, Innovation and Technology (11 ed.). NY: McGraw Hill.

On Time Delivery Service Case Study

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