Scenario 1
Alexandra has been constantly receiving feedback from specific business customers complaining of late shipments of products to their receiving store. Investigations have revealed that shipments arrive on average one and a half days late when compared with the agreed delivery time from order placement.
The late delivery is causing certainbusiness customers to lose a considerable amount of sales as they carry no buffer stock.
Warehousing states that the ‘late’ ordersare low on their list of priorities because the effected customersare not on marketing’s priority list of customers. Warehousing also states that they have manpower shortages because of high turnover of staff in the warehouse and delivery section.