Reference no: EM132307026
In the recent years, Bharat Point Corporation has emerged as a very successful merchandiser of contemporary fashion apparel for men and women. The company publishes a high quality catalogue that it sends to prospective customers, who then place order by mail or by using a toll-free telephone number. The customer base consists principally of young working couples. Children are not included as potential customers. The young working couples also receive catalogue from competitive firms such as ABC Ltd., etc.
Though catalogue business is fiercely competitive, it is growing as well. People who are "just-to-busy" to shop at retail outlets regard this as an appealing alternative. Also, it is seen that purchase apparel merchandise by catalogue has an element of prestige in certain social circles.
To further connect with today's consumers, the company has developed an internet-based capability, , which provides full and ordering services for on-line customers. The breadth of the product line is identical to that of the traditional , the company's website offers a new and effective way to interact with customers.
Among companies of its kind, Bharat Point . is thought to offer the best product assortment, product quality and customer service. Two critical customer service elements at Bharat Point . are that the company receives, packs and ships orders in a timely manner and that the product return procedures are "customer friendly". Although the company accommodates product returns with "little-or-not-bother" to the customer, is practice is expensive and of growing concern to the higher management.
Bharat Point does not produce any of the merchandise that it sells. Instead, it contracts with local manufacturers and also imports from Korea, Hong Kong, Taiwan and Singapore to meet its largely seasonal product-line needs. The company ships container loads of labeled and tagged merchandise by combination of ocean transportation and domestic inland motor freight to a centralized distribution in Delhi and Bangalore. Subsequent movements to individual customers are made by companies like UPS and Federal Express.
Bharat Point executives consider themselves to be in the "logistics business". They feel that the company's logistical capabilities are the key to its excellent reputation in the market place. An area of nagging concern to the managers of Bharat Point however, is that customer tastes and company product preferences are beginning to change very quickly, sometimes in the middle of a selling season. Only a continued ability to react quickly to the changing market needs will separate market leaders from the others.
In what ways should you consider the components of the logistic information system important to Bharat Point? What suggestions do you have for improving the company's logistical information system?
What type of logistics challenges do you feel may be associated with the use of customers of the company's online capability?
What macro environmental factor will be critical to Bharat Point's future success? In what specific ways can the company develop logistic capabilities to address these factors?