Question 1:
Logistical support is needed in any marketing business that needs the transportation of goods or raw materials and services to the place where they are desired. The whole process of logistics involves the incorporation of reliable technological information, transportation, inventory, warehousing, handling of the materials and packaging of goods at the shortest possible time. Although, these processes entirely depends on the service provider chosen. There are numerous logistics provider, two of which are FedEx and UPS who have integrated in their system eBusiness and internet shipping, respectively. The FedEx eBusiness have thee different categories that manage business solution through eBusiness Tools, eShipping Tools and the Logistics Solutions. These integrations allows one to utilize the in the entire logistic process together with the FedEx experienced team of supply chain management professionals, it will offer an integrated and customized supply chain solution that meets the customers requirements (2006). In the UPS website they have an internet shipping demo for first time users wherein the customer can keep track of their shipment in the supply chain. The UPS internet shipping as declared in their website as fast and convenient shipping solution on the web that the customer does not need to pick up the phone in preparing and shipping domestic or international packages, only needing an internet connection, UPS ID, credit card or the UPS account number. One can now improve productivity (ship and track shipment only in your desktop, schedule UPS pick up), provide better service gain visibility in package status, grow customer relationships and reduce errors through the UPS address book.
The services offered by both companies allow their customer to have better access and fast transactions at the lowest possible cost compares to the postal system and traditional freight carriers. Site-integrated logistics can also reduce operating costs when managing returns; ten to 20 percent of shipments end up being returned to the shipper, and improving service improves customer satisfaction and loyalty. In addition, maintaining customer satisfaction is always the top priority of every business organization. According to , vice president of e-commerce marketing at FedEx; states that with e-logistics, a courier can go right to the customer, print a ticket on the spot, and from that point on the entire transaction is in the system. notes that some clients cut the cost of handling a return as much as 90 percent by using Web technology to reduce phone calls and limit product loss ( 2000).
The datas that are presented above are qualified enough for a customer to decide a logistic provider who can provide efficiency at the lowest possible cost. In my case as an art and crafts dealer I don’t need to consider anymore, the geographical location of the service provider since, availing their service is only a click away. This would give me more time with my customers as to their purchase and would be able to send detailed follow-up e-mails with order number, order total, the items ordered, the expected arrival date and a phone number or e- mail address including the track number, so that they too can monitor their delivery date on the carrier’s website. This proves that investing with them is hassle – free. In addition, this process is systematic enough that one could easily follow through the process. It is easy to learn and manageable that even the not – so – big time consumers can avail of their service.
Question 2:
The corporate philosophy, “We Make Your Day’ is the essential key on delivering the quality of service beyond their customer’s expectation. As a well – known member of the A.S. Watson Group (ASW) allowed them to provide a wide array of international products to the meet the customer demands. This also provides unlimited resources that allow them to increase sales. The e- fulfillment strategy use by ParknShop as stated in their website is through their ‘Fresh Check’ and ‘PriceWatch’ programmes that have set the benchmark for Hong Kong retailing, guaranteeing customers the highest possible levels of food safety, at the best value in town even maintaining quality standards when customers do online shopping. On the other hand, Wellcome started as a supermarket; in order to blend with the fastest growing trend – the internet. They now, cater online shopping services which started on July 1996. The greatest breakthrough of Wellcome would be operating on a 24-hour period with fresh products for consumers to buy. In their pricing policy, this changes daily at midnight. The on – line store will close for a few minutes before midnight to update prices and promotions however, the customer will be charged the price that applied when the item was ordered and promotional products are only during the period and while there are still stocks available.
In the context of online shopping, both local groceries offer a wide array of choices from the basic goods to pet foods that can be paid through credit cards but not cheque. They can customize their delivery schedule by ordering days ahead before the delivery date scheduled. The most important part of the online shopping is that customer’s data or account remains private especially with the use of credit cards. They value their customers well, that they not only make sure but double checks if the said items are the exact and are delivered fresh at their doorstep that’s the reason why, they don’t deliver frozen foods at certain areas to ensure quality service on the freshness of their products. To gain loyalty from their customers they have customer service that offers from the service hotline to the refund/replacement policy. One definite reason that online shopping works well with the ParknShop and Wellcome is that it is managed by employees who tried their best to meet the changing demands of the customers.
The difference between Peapod and the two local grocery chains is that they have limited capital resources this may be due to lack of strategic points in investing their products well in the market. In the article written by , it has stated that Peapod is experiencing financial losses two weeks after their president and chief executive resigned due to health reasons. Meaning without proper management, any company will collapse especially, if the company has been experiencing chronic financial losses it will definitely at some point would stop marketing its products unless, appropriate action is done to remedy the current situation. Also, it is not easy to recover directly from financial loss; as suggested in the article, ‘unless they find a buyer or a cash infusion with another company.’ The limited resources of the Peapod Company have lessened their horizons for greater opportunities thus; it is possible to continue financial losses.
In addition, the on- line grocers are not good enough to save the company from going down, as a comment by J. C. Bradford Stouffer; he said, "What we've seen is a rather rapid ramp-up in customer orders and different facilities, but we haven't seen anybody get to the level where they have enough business to show a profit ()," meaning, one could never assume that the number of buyers or customers would direct the future of the company however, an increase number of consumers would directly foretell the amount of profit an organization have. To think it more clearly, if the Peapod have numerous consumers and yet, the company is striving to survive therefore, it is a question of how the finances of the management were run.
On the other hand, if the consumers were totally satisfied by their experience with the Peapod Company, it is likely that they will continue supporting the products of the company as well as, the online shopping but if they weren’t satisfied enough they could easily purchase goods online with other companies who might be better in delivering their services. It must also be noted that Peapod is not the only existing online shop, there are various shop with enhance system facilities who could compete with them nit just with their products but also, to their services.
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