logistics & distribution-2

8/7/2019 Logistics & Distribution-2

1/20

Logistics &

Distribution

Case Study- Fashion Point

Corporation

Group-5


2/20

Fashion Point Corporation

Merchandiser of contemporary fashion apparelfor men and women.

Not a manufacturer.

Company contracts with local manufacturers

&also imports from Korea, Hong Kong, Taiwanand Singapore.

Offers the best product assortment, productquality and customer service.


3/20

High quality catalogue sent to prospective

customers.

Order received by mail or on a toll-free

telephone number.

Growing, but it is fiercely competitive.

Target customers- Young working couples.


4/20

Benefits

Appealing alternative for people who

are just-to- busy to shop at retail.

Offers element of prestige in social

circles.

Fashion.com, provides full catalogue& ordering services for on-line

customers.


5/20

Customer Service

Two critical elements :

i)Company receives, packs and ships orders in a

timely manner to ensure that product return

procedures are customer friendly.

ii)Although the company accommodates productreturns with little-or-not-bother to the customer,

is practice is expensive and of growing concern

to the higher management.


6/20

Distribution Channel

Shipping container loads of labeled and pre-tagged merchandise by combination ofocean transportation and domestic inlandmotor freight to a centralized distributioncentre in Delhi and Bangalore.

Subsequent movements to individualcustomers are made by companies like UPSand Federal Express.


7/20

Company Issues

Unpredictable and changing

customer tastes/demands. Occurs in midst of the selling season


8/20

Components of the Logistic Information

System Important to Fashion Point

Sales

Purchase Inventory

Online Logistics

Customer Service Transportation & Delivery(DC)


9/20

LIS for Sales

Through traditional catalogues &

online portal (fashion.com). Keeping up with changing consumer

preferences.

Customize in a way to suit youngworking couples.


10/20

LIS for Purchase

Timely procurement of Apparels

Continuous supply Fashion Market Forecast

Procuring Bulk Quantities

Cost Reduction through appropriatechannels of Distribution

Quality improvement


11/20

LIS for Inventory

Software for Stock Maintenance

Replenishment of stocks. Tailor made ERP

Packaging


12/20

LIS for customer relationship

There are 3 phases

Pre transaction Transaction

Post transaction.

Responsiveness to order


13/20

LIS for Transportation

Shipment consolidation through

centralized DC (Delhi,B

angalore) Tie ups with UPS and Federal

express for efficient and cheap

delivery


14/20

Suggestions for Improvement of

Companys Logistics Information

System

Tracking

Organising More no. of centralised DC

Customised transportation

Payment collection on delivery (COD) Stock availability

Direct shipping


15/20

LIS for Online Logistics

B2C-Direct business to consumer

Co-ordination with purchase&inventory

Online Payments System ensuring

transaction security Offering services like- order

postponement, cancellation,

substitutes


16/20

LIS for Online Logistics

Reverse Material Flow in case of

goods return Incase the inventory is not available

the customer needs to be informed

and be offered refund or substitutes

Responsiveness

Online order status & documentation

Customer Service


17/20

Logisitcs Challenges for

Fashion.com

Online Transaction Security

Order Processing Inventory Management

Order Execution

Tracking Shipments


18/20

Macro environmental factor critical to

Companys future success

Growing Market

Escalating and varying customerdemands, tastes and preferences

Information Coordination Capability

Fashion-Dynamics Inbound Transportation Cost

Responsiveness

Assortment of products


19/20

Logistic capabilities to address

these factors

Response time should be less/quick

Diversified Product Portfolio-good variety

High Product Availability

Faster time to market the products

Continuous Interaction with the customers

so as to increase performance capabilities

Tie-ups with Shipping Companies

Provide Customization Services


20/20

We are Group 5Mayank

JainAanchalGa

jra

Tejas jain

Nikhil

AdesaraManish

Jivani

Keshav

logistics & distribution-2

Documents