Resolving Complex Supply Chain Issues

Resolving Complex Supply Chain Issues

Question one

The contracts of outside salespersons should be paid as per the sales results yielded. Ranking of the salespersons should be meant according to performance, and incentives are issued subsequently as a way of motivating them. Besides, a more attractive offer can be meant to the excelling salespersons to quantify their extra cost suffered and compensate them. Those who make minimal sales below average should be laid off, and their contracts terminated in the process of cultivating productivity among the salespersons. The money freed from paying such a group of unproductive salespersons can be channeled in covering the extra cost incurred by the productive group of the salesperson. It can be observed that unproductive salespeople give precedence to other products that they think are more important. It follows that they would show less care whenever raises claim that the services do not cater to their needs effectively. Such sales are personalized for customers more, so those in the interior area should be sewed and replaced with the central city. Besides, the business should look forward to leveraging the efficiencies presented by the internet during this digital era instead of depending on outside salespersons that cannot be predicted. The company should encourage online buying where orders are to be delivered to customers and reduce the shipping costs as well as minimizes the chances of contract salespersons being ion touch with the money of the company..

Question two

TAM should continue to offer premium tea blends for the market as the company has positioned itself as a brand with the highest quality.  The pricing of the company should remain high to give the company a reason for going the extra mile to refine their products for better. Such a move does not alienate the rest of the market.  As a result, marketing should stick to its high standings in the market place. The company should channel its investment to marketing to educate their customers on the superior quality of its products. Generally, the marketing should be directed to the best customers whose price comes second after the quality of the product. Also, seasonal promotions should be arranged where prices can be subsidized for the customers. These promotions should be carried out strategically, and conditions that are beneficial to the brand should be attached. For example, clients should require buying bulk of the products for them to win a promotion. To market unpopular products, the company can connect both popular and unpopular brands and sell them as one. The business of tea is not proprietary, and the company should always be moved to increase the distance existing between them and the second movers whom they cannot avoid.

Question three

The company should boost the volume of their orders from the London Company, which are meant half-year as tea is a commodity that can be kept on the shelves for an extended period. The company’s supply chain should be insured from risk as a way of preventing it from collapsing. The company should opt for an additional supplier to boost their stock level. As the company is better placed financially compared to its nascent period, it can go back to transacting with India and China as a way of ensuring it has enough stock as reliable supply is the center of any growing brand. Tea and more have the capability of utilizing the economies of scale that did not exist before as they were dealing with prior suppliers. During those times, they could dictate the trade terms, and as a result, they were capable of supplementing their supply of products from Earl Morgan limited. Marketing should be utilized instead of reacting to clients to guide and minimize unpredicted circumstances.

Question four

Tea and more has the mandate to train its customers to observe their credit policy.

Leniency does not promise fast results. Instead, it enables the casualness of customers with the urgent business of the company. A potential customer should understand and acknowledge the payment terms of the company before thinking of becoming customers to the products of the brand. The company should not hesitate during the payment collection date to change its credit policy in fear of scaring away potential clients. The company should not customize terms of payment for specific customers, but rather, it should make it standard for all customers. The company should send a personal reminder some days upon expiry of payment dates and more money be accrued. If the company encounters disputes on payment terms regarding the price or quality of the product, trials should be meant to resolve it instantly. Continuous and polite reminders of the customers will help in minimizing the collection period. TAM company should inform their client’s payments implied in time would translate to the improvement of customer services.

Question five

Low seasons should be monitored during which the company should avoid coming up with new products and instead concentrate on selling the existing products. In such a case, the stock should always be present and insured. A company that only depends on its brand power can afford to stop innovating new products, and thus it has to innovate persistently. In case a product being experiment in the market encounters poor reception, it should be removed so long as it meets the necessary conditions such as proper marketing and efficient customer service delivery. The TAM should revisit their drawing board and utilize their internal shortcomings top learn how to impede success on the products and even establish others as any growing business has to learn to avoid being closed due to stagnation as the employees will lack something new to motivate them. The market place is full of vacuum, and competitors would come in with new products or improved pre-existing products to seize the opportunity.

Question six

The workforce is the greatest treasure for any company, and it should be used maximum for the benefit of the company. Jack Reynolds leads the firm under the assumption that he posses the monopoly of creativity to herald Tea and More for it to succeed. The workers simply adopt his idea of retaining their perceptions and following the company’s orders apparently. Some who believe their expertise is not utilized efficiently can go to other companies whenever an opportunity presents. It can be observed to convincing to poach unsatisfied employees does not take much. Fear stifles creativity due to employees’ worry of consequences. As a result, the company should aim at retaining the human resource and the money used to train new employees to be directed to the more productive area of the company. Jack Reynolds should designate various aspects of the decision-making process, making it more efficient.

References

Doyle, B., & Bell, A. H. (2009).Reading the Tea Leaves at Tea and More: Resolving Complex Supply Chain Issues.

Dekker, R., Fleischmann, M., Inderfurth, K., & van Wassenhove, L. N. (Eds.). (2013). Reverse logistics: quantitative models for closed-loop supply chains. Springer Science & Business Media.