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Case Study - ECOMART - Local - Withquestions

ECOMART is a Philippines-based e-commerce company experiencing challenges with inefficient distribution. Products from various regions must be transported to a central warehouse then distributed nationwide. This causes slow delivery times, high costs, and inconsistent availability. ECOMART hired a new Head of Distribution to address these issues through improved strategies like using rural distribution for remote areas, outsourcing operations, and just-in-time inventory to ensure consistent availability while reducing costs and stock-outs.

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rizza mae aguja
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85 views

Case Study - ECOMART - Local - Withquestions

ECOMART is a Philippines-based e-commerce company experiencing challenges with inefficient distribution. Products from various regions must be transported to a central warehouse then distributed nationwide. This causes slow delivery times, high costs, and inconsistent availability. ECOMART hired a new Head of Distribution to address these issues through improved strategies like using rural distribution for remote areas, outsourcing operations, and just-in-time inventory to ensure consistent availability while reducing costs and stock-outs.

Uploaded by

rizza mae aguja
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Study: ECOMART - Distributing Local Products Nationwide

Background:
ECOMART is a Philippines-based e-commerce business that has been operating since 2021. The
company specializes in selling and distributing local products from the different regions of the
country to a nationwide market. Their product range includes food items, handicrafts, clothing,
home and kitchen wares, and more.

Problem:
While ECOMART's business model has been successful, the company is experiencing challenges
in managing its distribution networks efficiently. They need to transport products from various
parts of the country to their central warehouse in Manila, and from there, distribute to customers
all over the Philippines. The main issues include:
Slow delivery times due to logistical bottlenecks, particularly in remote or hard-to-reach areas.
High operational costs because of inefficiencies in their distribution network.
Inconsistent product availability and stock-outs, leading to missed sales opportunities and
unsatisfied customers.
ECOMART has recently hired a new Head of Distribution to tackle these issues and streamline
their distribution processes.

Questions:
1. What are some possible strategies to improve delivery times in remote or hard-to-reach
areas?
 To reach the remote areas, one of the possible strategies that I can recommend is
to use the rural distribution system, this is just the same as indirect distribution
that has wholesalers, retailers and they also use a small vehicle like van to deliver
the products, van is much smaller than trucks so probably they can enter now the
remote areas, so no more delays.

2. How can ECOMART optimize its distribution network to reduce operational costs?
 To reduce operational costs, ECOMART should consider outsourcing some of
their operation, hire a third party that can deliver their product directly to the
customer.

3. What strategies could ECOMART implement to ensure consistent product availability


and prevent stock-outs?
 To ensure consistent product availability and prevent stock-outs, ECOMART
should update their sales forecast, and then implement the just-in-time inventory
system, this inventory system ensures that the product that will produce is just
enough to meet the customer demand.

4. Given the geographic diversity of the Philippines, how could technology be leveraged to
improve distribution efficiency?
 Technology can be used to track the delivery of the product, and the company’s
sales forecast. By maximizing the use of technology, the distribution efficiency
might improve.

5. What are some potential challenges ECOMART may face when implementing these new
strategies, and how could these challenges be mitigated?
 one of the cons of using just-in-time inventory is the delay of delivering the
product, because just-in-time inventory strategy is directly aligning raw material
order from supplier, the whole production may stop if the supplier cannot deliver
the goods.

6. How might ECOMART manage relationships with its local suppliers to ensure a steady
supply of products?
 ECOMART should set rules to manage its relationship to its suppliers, both
parties should be transparent to each other, and have a meeting regularly to give
your suppliers assurance and let them be aware about the production of the
products.
7. Can partnerships with local couriers or logistics companies be beneficial for
ECOMART's distribution strategy? If so, how?
 Yes, because ECOMART’s is establishing itself, they need connections to
promote their brand, and so having a local couriers and logistics companies can
help their brand to be know, so for me it is beneficial.

8. How could ECOMART measure the success of its new distribution strategies? What key
performance indicators (KPIs) could be used?
 To measure the success of its new distribution strategies of ECOMART, I will
suggest using the Turnover ratios, because it can measure how quickly
ECOMART can perform, just like inventory turnover measures how ECOMART
can turn the product to revenue.

9. What are the environmental considerations ECOMART should take into account when
improving their distribution management?
 One of the environmental considerations that ECOMART should consider is the
climate change, no one can foresee the weather, for example there is a
thunderstorm, but ECOMART have a schedule to deliver for the safety of both
products and workmen they should not deliver the product or at least have a plan
B or talk to their customer to move the scheduled time of delivery.
10. In terms of future growth, how might an improved distribution management strategy
prepare ECOMART for potential international expansion?
 After addressing all of the problems we came out with an improved distribution
management strategy, so we can say that ECOMART can use it if they encounter
the same problem in the future, it will be easy for them to fix the problem because
they already learned it from their past operations.

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