Ledals faced a significant decline in its margins due to the additional trips being made by the delivery trucks for backorders. Ledals has been one of the leading redistribution companies in the U.S. Subsequently, Ledals’ executives forced a new strategy, which focused that until the next order was received and get ready for shipping, the backordered items would be held by the customers.
However, this new approach led to several unintended consequences, it caused the frustration for both the customers and the company’s salespersons. The sales force persons were not satisfied with this decision. What remained is to evaluate the actual amount of damage being done with this approach. Was this thought accurate that it was basically a predictable resistance to change that would itself get resolved within the next few months?
If there was actually a problem with this approach, then the management had to consider what, if any, plans are necessary to put in place. Ledals additionally needed to figure out if the issue was with the approach itself or its implementation. Regardless of the reason, management needed to settle on a choice at the earliest opportunity about how to move ahead. The author, William H. Murphy is associated with University of Saskatchewan.
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