Describe the different key elements or components that identifyand determine the quality of the company services (remember thatthere are two different types of target customers).

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TRUE DELIVERY CORPORATION CASE
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CASE 11 – TRUE DELIVERY CORPORATION
Actually You have been appointed as the Spanish Chief OperationsManager (COM) of TRUE DELIVERY Corporation, a US multinationalcompany of home delivery services of quality products. HOMEDELIVERY Co wants to introduce its business into the Spanish Marketnext year. They want to offer their services focusing in themarkets of the metropolitan areas of the main Spanish bigcities.
The company will establish its headquarters in Barcelona and has aplan of gradual introduction in the different local markets of themain Spanish cities. The first target will be Barcelonametropolitan area which they want to start next year, the nexttarget in two years will be Madrid metropolitan area and the thirdselected city for this initial phase of introduction will beZaragoza which will start in three years. Zaragoza city is locatedbetween Madrid and Barcelona and the three cities are wellcommunicated by highway and railways.
Locally the target audience of their services are private consumerswith medium and high revenues (families, singles, students, elderlypeople, …), public institutions, private companies andinstitutions, schools, universities, etc. which want to order somequality products for their use or consumption. The companyconsiders them as its primary customers or target market.
The company offers them a wide range of different local qualityproducts which are locally available and some other locallyselected products from different cities where the company ispresent. Starting in the second year of introduction, Barcelona’scustomers could order some local products from Madrid and on thecontrary Madrid’s customers could order local products fromBarcelona. Starting the third year a customer of one of the citiescould order some local products from the two other cities. All ofthese products will be supplied by different city’s selectedproviders. The company considers them their secondary customers ortarget market.
The company providers are considered among different restaurants,specialized groceries, pharmacies, selected supermarkets andhardware specific stores.
The company discretionally chooses their providers in each city tosupply its local products to their customers. In each city theselection is made differently depending on the type of provider andits local market share through company’s primary target.
When the provider is selected, an agreement of collaboration isthen negotiated an established. There is an exchange of informationand customers, products and providers. Both companies expand theirnetworks because TRUE DELIVERY Co provides their customers withaccess to new providers and at the same time provides theirproviders with new potential customers.
There are two different ways to make an order using TRUEDELIVERY:
1) Customers can initially place their orders through TRUE DELIVERYrequesting specific products of the providers that they want. Then,TRUE DELIVERY places these orders with the specific providers andlater TRUE DELIVERY picks up the orders from these providers anddelivers the orders to the customers.
2) In case the customer is more confident with the provider of thedesired product, customers can place their orders directly to theprovider requesting the products. Then, the provider places theorder to TRUE DELIVERY which picks up and transports that order tothat customer.
Primary customers and secondary customers (providers) can placetheir orders through the company’s website, by email, by phone orby app. Then the order is registered in the database and thenprocessed by the different areas of the operationsdepartment.
TRUE DELIVERY CORPORATION CASE
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One of the most important competitive edges that differentiatesthis company is that the company offers combined orders to theircustomers. They also offer different types of services to theircustomers depending on different delivery options andscheduling.
They will offer these different transportation options inSpain:
– Direct shipment of a customer order (directly from provider tocustomer, not passing through company’s warehouse). E.G. pharmaciesurgent orders, some orders from restaurants, etc
– Customer combined order that has to be prepared in the company’swarehouse. E.G. a customer who places two orders at the same timeand wants to receive everything together ( a combined order of arestaurant order + a pharmacy order).
– Indirect shipment: Customers’ orders are delivered with otheradded orders using pre-established and pre-standardized routes ofdelivery. Here the customer has two options:
o The same day delivery
o 24 HOURS or 48 HOURS of delivery (not intended for perishableproducts, like food, etc.)
The operations department will be organized with:
– A call center and customer service area with the operators thatreceive and check all of the orders (from customers and providers),manage the complaints, attend to the customers and providers,provides satisfaction surveys to the customers, etc.
– A transportation sector with all of the vans and motorbikes andits drivers and a workshop area for vehicle maintenance. Thiscompany is committed to the protection of the environment. For thisreason, the company only uses electrical motorbikes or hybridvehicles of gas and fuel. The company wishes to be accredited withthe certification of 14.000 ISO standards in addition to the 9.000ISO certification.
– A control operations center which establishes, controls andmanages all of the operations resources and daily operations:
o They establish and organize the routes of the vehicle fleet(equipped with GPS locators) and reroute them to fill urgent needs,cut transportation times, reduce costs, resolve issues, etc.
o They also organize the indirect shipments and control thewarehouse operations (combined orders, etc.). This center has tohave a section of quality control assurance which reviews theperformance and quality of the processes and services.
o They control and manage all of the information in the database tomake forecasts and plan the operations accordingly.
– A technical information systems area which manages and maintainsall of the software which supports and tracks all of the processesof the operations and tracks all of the orders and variables ofservice (scheduling, delivery times, mistakes, complaints, …). Theyalso maintain the company website.
– A warehouse area with its workers divided in the followingsections:
o section to receive pick up orders
o section to prepare combined orders with a combinedpackaging
o section to prepare indirect shipments (preparing shipments ofdifferent customer orders for different routes).
o section to prepare expeditions
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The available home delivery services and its fees, types ofdifferent products and providers will be presented and offered onthe company website. The company website is an important marketinginstrument that facilitates customer relationships andcommunication. This is because it also presents personalizeddiscounts or providers of the day together with specificpersonalized daily news (new agreements with new providers, newproducts added, new transportation services, etc.). The Companyalso grants customers and providers with a customer loyaltyprogram.
Additionally, the company website is a key element in theoperations processes because:
– Customers and providers can place their orders on the websitethen the website syncs with all of the databases and processes ofthe company.
– Customer and providers can track the situation of their orderthanks to the different programs of operations.
– TRUE DELIVERY tracks and controls the registration and situationof the different customers’ orders within the different systemphases of operations. The system also launches and connectsautomatically all of the operations orders to the differentoperations areas of the department (call center, transportationsector, warehouse, …).
When the company opens its business in a new city, the companyfollows and implements a ramp-up period for the operations tocomplete with different gradual phases (see ANNEX 1 for Barcelona).This plan could be modified and adapted locally if some unexpectedproblem might arise during this process of introduction and if anadaptation or modification is needed for local specific needs oravailable resources from providers, customers or cityinfrastructure.
Thanks to their operations systems and information systemsorganization the company actually prides itself on matchingexpected delivery times with 10% deviation (caused bytransportation delays, pick up rework, labelling mistakes, mistakeson postal addresses, … ) and on matching order requestedcomposition with 5% deviation (caused by mistakes when placing theorders, mistakes of picking up the products, mistakes of picking upthe combined orders, …)