Ledals, among the premier redistribution companies in the United States, had determined that whenever backorders happened, margins were being killed by the additional excursions being made by delivery trucks.Therefore, management implemented a policy, whereby backordered items would be kept till the next order was collected and prepared for shipping.
Ledals Redistributor Enacting Policies that Frustrate Salespeople and Customers Case Study Solution
This arrangement led to repercussions, with both customers and Ledals' salespeople frustrated with the new policy. Muted in the beginning, but growing in quantity, many members of the sales force were definitely disgruntled. What remained was figuring out just how much damage was actually being done. Was it just a predictable resistence to change that would resolve itself in the approaching months? If it was an actual problem, Ledals' management needed to consider what, if any, actions should be taken. Ledals also had to decide whether the difficulty was with the policy itself or its implementation. Regardless of the cause, management needed to make a determination as soon as possible about how to move forward. William H. Murphy is affiliated with University of Saskatchewan.
PUBLICATION DATE: September 16, 2014 PRODUCT #: W14449-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING