All-Indian Logistics services
All-Indian Logistics services is a third company that provides logistics services. The company’s headquarters is located in South Delhi, and it was founded by two logistic executives who were working with Tata steel company (Anwar, 2014). They offer services such as shipping of goods from other countries to India of from India, customs clearing and mainland transportation. All-Indian Logistic Services is known to have a comprehensive and developed network of offices, in India, United States of America European countries such as United Kingdom, France, Germany and Italy, and countries in the Middle East such as Saudi Arabia, Yemen, Oman, and Qatar. It renders import consolidation by either water, land or air. Also, it offers door-to do-services, as it is entirely armed with equipment that helps the company to pick the goods from suppliers’ warehouse, warehouse before custom clearances and complete customs clearance from the overseas. Bookings placed in India with airlines and ship lines to receive cargo is also a service that is offered by the All-India Logistics services. The company also provides export services, as it has the experience in handling different types of cargo either by the by air freight or by the ocean means. The company makes sure that there is a timely movement of cargo and also making sure that they it is offering those services that are highly competitive in terms of rates (Anwar, 2014). The export documentation and any other formalities as well as physical movement of cargo are well taken care of. Finally, the company offers consultancy on logistics and customs, as customers are guided regarding to the means of transport. Also, it can assist clients in saving of freight and optimizing space.
According to the currents statistics, All-Indian Logistics Services is handling 200 or more 20-foot containers of imports and exports every month, and its route of service is between Mumbai and Delhi. The company is lucky, as no container comes backs empty. This is because the company believes that emptiness is unproductive (Anwar, 2014). Its main export items include agricultural machinery, bathroom fittings and spares, machine spares, chemicals, medical equipment, food processing machinery and others. They also specialize in the importation of automobile engines and spares, food products, electronics and other products.
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Recently, the company has expanded its consultancy services, as they are now offering services such as site selection for manufacturing plants and warehousing structures, and the firm was retained on the selection of site by American Athletic Apparel, a company that manufactures athletic clothes, and it is a multinational company. The group suggested that the site should be in a highly populated area such as the city (Anwar, 2014). The products are for export to the United States of America and some countries in the Western Europe. The company showed the AAA the best site, and it is likely to secure a tender of transporting export goods.
Johnson Toy Company
This is a company that is based in the Mississippi in the United States of America and deal with toys. It has been in existence for more than seven decades. The president’s company is known as Amy while the vice president is knowns as Lori Johnson, and the two ladies are sisters. The market for its products is very seasonal, as the demand for their products is high during the Christmas period and time between summer and spring when the company has to sell outdoor products (Das, 2014). The company relies on several basic designs of the toys which have minimal profit margins although the production is significant. Every step is risky, but when it becomes successful, the profit is guaranteed. Due to this factor, the company comes up with a new design, and once the model becomes embraced in the market, the outcome or the number of sales go up. There was a significant blow in the company some years back when its bestselling doll design, Jim jogger, was said to be showing a sexual misadventure and the sale rate decreased, as people were not buying those dolls. However, the company was selling about ten million dolls per year. Due to what happened to the Jim jogger, the company has been dealing with the high number of returns from the retailers, and this is one of the significant problems that are being faced by the company, and it has to deal with them to remain in the market.
There are some of the challenges that both companies are facing, as they are both. The problems are either internal or external, something to do with management or other staff members. Due to this, the management of both companies has to come up with solutions to these problems to remain relevant in the market (Das, 2014). Below are some of the issues that both companies face.
Problems faced by both companies.
The marketing in both companies is not doing enough research on the market, as ways of making a more significant profit margin. All-Indian Logistics deals with transportation of goods with India and between India and other parts of the world. The company believes that when the products are destined to a particular destination, the containers should not come back empty. However, this is not the case, as most of the vessels are coming back empty (Das, 2014). This is because there are no goods that need to be transported, and the profit margin goes downs, as the marketing team had not done enough research before taking those cargos to their destination. Besides, it might have charged less amount of money, as it wanted to win secure that tender and also hoping to get some goods that need to get ferried back. On the other hand, the marketing team in Johnson Toys Company has not done enough research. This the reason why the return rates are high. They are making sure that retailers are buying that product with hopes that the toys will be sold at a higher price. However, that is not the case; the marketing team is not doing the research needed to come up with market information and to become aware of demand of these toys, or the types that are necessary for the market. The lack of knowledge has made the company make the toys that are not required for the market, thus making the number of returns go up.
Another problem that is facing both companies is that the cost of poor customer service is very high. Some parts of the India have the abysmal infrastructure, and ferrying goods into those destinations may be very challenging, as commodities may be late thus leading to inconveniences. All-Indian Logistics services have not been left behind by this problems. Due to these, the customer tends to look for other companies that seem more convenient (Das, 2014). In the Johnson Toy Company, things are not right also. The company is manufacturing some goods that are not meeting the level of satisfaction needed by the customers thus increasing the number of returned goods. However, there can be solutions for the above problems.
Solutions.
Both companies should ensure that the companies’ market teams have enough market information, and the teams should put more effort into researching how the market is. Having the required and enough information on the market availability can help the management decide or regulate the level of product and service production. All-Indian Logistics Services marketing team should carry out a thorough research on the availability of goods on the other side that needs to be transported. On the other hand, the Johnson Toy Company marketing team should ensure that it is giving the company enough market information to reduce the number of returns (Das, 2014).
The other solution is, both companies should come up with ways of making sure that they satisfy their customers. If there is inadequate transport infrastructure, the management should let the customer know the truth instead of giving him or her false expectation. The can inform the customer of what time he will receive the cargo, and this makes him more satisfied. On the other hand, the marketing team at Johnson Toys Company should go into the ground and collect the information on toys that are best, and they are loved many customers.
The above solutions can be used to solve the problems; the best solution is to make sure that there is proper management (Das, 2014). Furthermore, both companies need to carry out a comprehensive research on market availability, market pattern, inconveniences and ways of customer satisfaction. The companies should also make sure that there are excellent communication skills, and this will make them relevant in the market.
References
Anwar, S. T. (2014). Product recalls and product-harm crises: A case of the changing toy industry. Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness , 24 (3), 190-210.
Das, R. (2014). A Review of the Indian Logistics Industry and Policy. Browser Download This Paper .
