Shotgon Reload

In: Other Topics

Submitted By termpaperjoe
Words 295
Pages 2
Good Food Distribution– Web Sales Profitability
TO: Operations Revenue Director FROM: Executive Analyst Team

Introduction
Good Food is a food distributor and is losing profits on items returned by customers that have been isolated as Ordering Errors. The objective is to determine what types of customers are creating the errors and present a solution to reduce the losses incurred due to the returned damaged products. 1. Qualitative analysis results indicate CSR orders are time consuming & less accurate.

2. Conduct quantitative analysis using independent variables to pinpoint errors.
3. Determine Cost & Profitability of Houston Division based on results.

Current Revenue from Web Orders & CSR Orders
Operation statistics have shown that we currently damage out (total Loss) 60% of all products that get returned due to this type of error. Products are not in proper condition to restock & sell. 24 Month- Division Revenue 24 Month Ordering Errors Total Loss (damages) Sample Size Analysis Sample Size TTL Losses $235,000,000 $152,750 $91,650 $24,641,347 $28,984
90%

10% ORDERS via Web ORDERS via CSR

Figure 1 - Majority of Customers send orders via Web

Table 1- $ Results Totals from Independent Variables

Revenue from Web orders $22,350,277

Revenue from Calls/Fax $2,291,070

$ Error using Web $37,477

$ Error Fax/Calls $10,830

$ Error from Newer Customers < 1 yr $8,842

$ Errors from Older Customers $39,465

Conclusions

Table 1 summary illustrates the totals over the 24 month period but further analysis included in this report detail the findings, coorelations, and conclusions. It is our recommendation that Good Food Distribution promote the Web Ordering system to more customers and increase web order % from 90 to 99%. Break-even charts attached also indicate that using the web generates more profits for Good Food.…...

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