Daily Needs Delivery’s road map from rags to riches within an year

Assignment Taken

Tag Line :

Feeding your Needs with Speed

 

Fund Raising :

 

ABOUT THE ORGANISATION:
NAME	DAILY NEEDS DELIVERY LLP
FOUNDERS	Sam Malhotra
	Rajish Gupta
NO OF EMPLOYEES	10 Corporate Employees
	80 Delivery Partners
OPERATING AREAS	BENGALURU, DELHI & HYDERABAD
PRODUCTS OFFERED	MILK, PANEER & CURD
ANNUAL REVENUE(Rs)	33,43,93,200
NET PROFIT(FY 19-20)	4,11,82,900
NO OF PARTNERS	25

 

Mission :

To deliver necessities at the consumer doorstep with utmost efficiency and care

Vision :

Making the world people accessible to every need

Proposal:

DND is a revolutionary start-up which operates in hyper delivery domain. It currently delivers daily need products to every home based on subscription through app. Our business has been delivering to a huge customer base within a short span. The company now aims to expand its horizon of products and operating areas. For this dream to come true, we need support morally and financially in coming years. We have sketched our plans to reach the goal. We are having a good relationship between our suppliers and customers all these years. Financially we expect an amount of 7.5 crores for achieving the target. We are sure of making good returns to our investors in a short period. We are expecting to have long term relationship between company and you. We have attached the financial results of recent fiscal year for your reference. We have also attached the financial spend breakup of the required funding.

 

SPENDING BREAKUP:
Location Cost	15000000
Utility Expenses	7500000
Equipment,Furniture & Machinery	15000000
Maintenance	5000000
Promotional Costs	10000000
IT and Development Costs	7500000
Labor Costs	5000000
Operational Costs	10000000
TOTAL	75000000

Case Understanding

Daily Needs Delivery being a start-up recently initiated, there is a huge potential market to be tapped in daily needs. The company is currently facing issues that is related to lack of operational and promotional planning coupled with bad customer engagement. The problems are easily addressable if there is proper co-ordination between all departments. The financial loss of the current fiscal year can be turned north next year through stringent measures and changes in the existing app features and delivery front. The customers are unhappy because of the mismatched details and offerings recently. The company is currently lacking huge in strategical planning and business research. If these two areas are addressed efficiently, they can improve their sales and market share rapidly. They also do not have provision to tackle the dynamic demand of their products if returned back. Other than external challenges and constraints, there are also internal conflicts like delivery partner turnover and lack of information sharing to sales people. As the only source of orders is online through app, there is no dedicated budget to maintain and update the app. This can reduce half of their problems and double their revenue. The problem also lies in employees number and remuneration where they have scaled up rapidly without considering the future forecast. According to our team analysis and discussion, these are the existing problems and we have addressed with the solutions. As a IT and Business Analyst, I have recommended solutions related to app development and general improvements which will improve the current condition.

BCS Solution Summary

The solution provided can be divided into 2 parts, (i) App Related (ii)General Developments in Business The first part consists of ideas to improve the existing features in the DND app and introducing new options that can improve the customer retention,usability and engagement. Other than covering the DND app, there is also mention about ERP system to be implemented so that the general management can track all department activities and improve co-ordination among them. In the challenges part, app related concerns were high and were the major obstacle for DND’s business development. Other than covering about app development and optimization, there is mention about app promotion without help of a dedicated person. The second part consists of recommendations related to department operations on how they can improve their working by overcoming the hurdles. It also deals with problem solving of IT issues currently. For counter on losses,there are some insights given to finance department after analyzing the product portfolio. There are some general purchase recommendations made to counter the losses due to perishable products. The way to expand the organization in future are also discussed by coupling with insights to marketing department.

Solution

1. Find and enlist area of improvements

Management Principles discussed

Division of Work

Specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities.

Authority and Responsibility

In order to get things done in an organization, management has the authority to give orders to the employees.the accompanying power or authority gives the management the right to give orders to the subordinates

Unity of Direction

This management principle is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives.  The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities. Focus areas are the efforts made by the employees and coordination.

Remuneration

This management principle of the 14 principles of management argues that the remuneration should be sufficient to keep employees motivated and productive. There are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus or other financial compensation). Ultimately, it is about rewarding the efforts that have been made.

Order

According to this principle , employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy.

Stability of Tenure of Personnel

This management principle  represents deployment and managing of personnel and this should be in balance with the service that is provided from the organization. Management strives to minimize employee turnover and to have the right staff in the right place. Focus areas such as frequent change of position and sufficient development must be managed well.

Initiative

Employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization

Esprit de Corps

This management principle stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.

Hub and Spoke Delivery System to address non dense areas

(Order)

The main concern for the organization in the present and future will be to extend their services to non dense areas without wasting more resources. For this to be achieved, a delivery system of Hub and Spoke Pattern can help DND reach a wider audience and area through their delivery partners. To explain clearly, The Hub and Spoke model is having multiple locations sourcing, with a central location called the 'Hub. ' The location provides a single point of contact to the client, whilst the in-country extensions, called 'Spokes’. In this case, 3 cities(Bengaluru, Hyderabad and Delhi) act as hubs while the interior non dense areas serve as spokes. The benefits include reduced transit time and costs.

Enhanced Supplier On-Boarding and Rating System

(Esprit de Corps)

The issue of bad/perished products delivered to the customers can be addressed by developing a successful supplier base. The 3 products milk,paneer and curd being susceptible to get spoiled in short time is high, it is necessary to have suppliers who deliver quality products in the stipulated time. Other than the products being sourced solely by the company, having a supplier base can improve operations. It is also important to develop a performance review system for the suppliers to keep check of their work. DND can set certain metrics to evaluate them

Cash on Delivery

(Order)

Other than offering wallet payment and UPI services, DND should start delivering products with cash on delivery option. As there is mention of discrete demand from the consumer side, this option can fetch even more sales and improve credibility of the company.

In the non dense/rural places this can serve as advantage due to less penetration of digital payments there.

Order return/replace option

(Order)

As the products are of perishable nature, it is important that we enable the customer to exercise replace the delivered product if bad. Even though it increases costs, it can improve credibility and sales considerably. This can also serve as measure of evaluating the suppliers’ products.

Investment on refrigeration machinery

(Order)

To counter the product quality issue, it is necessary to invest on machinery to refrigerate the products. This can increase the product lifetime and also avoid unwanted spoilage when delivered to the customer. We can also use this as a backup to store products in case of emergency. Other products can also be refrigerated if product line is expanded

Compensation and Remuneration based on performance & daily basis for Delivery Partners

(Remuneration)

There is one another problem from the delivery side that delivery partners don’t turn up in the morning. To ensure an efficient delivery handling without missing orders, it is important to change the remuneration pattern to daily basis and performance rather than monthly basis.

The performance of delivery partner can be done parallel by consumers and company. Consumers rate their service through app and company evaluates them based on turning up to work,no of orders delivered etc..This can boost sales and reduce financial losses due to salary part.

Utilize Delivery partners after 8AM with other daily need products

(Authority and Responsibility)

Currently the company operates only till 8AM, but if we can utilize them after this period to deliver other daily need products like grocery,medicines,personal care etc.. DND can hold more market share in hyper delivery and grow rapidly. This recommendation is a part of growth strategy in future.

Train Delivery Partners

(Stability of Tenure of Personnel)

It is very important to on-board the delivery partners with utmost information and details about the work.It should be done by on-job training with existing employees. They should also be introduced to scope of work and suppliers for better understanding. They should also develop skills that are essential for handling customers. The HR department should try a trial in coming months

Review Meetings

(Initiative)

For increasing the employee involvement and company’s efficiency, DND should conduct monthly review meetings not only with top management but also all employees. This can give real picture of the business and serve as platform for employees to give ideas for business development. This makes everyone committed to the company.

Employ a new ERP system

(Unity of Direction) 

For ensuring a seamless operation between departments daily, General Management needs an Enterprise Resource Planning System to have track about all the activities in the company. With its help they can also make recommendations on tackling shortcomings from specific departments. This interface can also improve customer satisfaction.

Utilize Social Media

(Division of Work)

To promote the business in a wider way, we can start ad campaigns and viral campaigns with the help of digital marketer through major handles like Instagram, Facebook and Twitter. By understanding the data analytics part of it, we can scale up our business in other cities and rural areas. We can also modify the services offered based on it.

ii). Suggest new features in-app to increase usability, customer delight & sales.

App Demonstration video

When opening the app for the first time by the consumer, it is necessary to welcome them with a demonstration video on how to operate the app to get their orders delivered and other services offered. This reduces complexity and provide clarity.

App Store Optimization

Other than improving in-app features, the way the app is listed in play store or app store should be optimized. This includes tweaking the company icon, sample screenshot, demo video and app description. The process is different for Android and iOS. This can improve installation rate rapidly. We should also update the app recently with bug fixes.

Initiate Offers with promo code and cashback

By starting a loyalty program in-app, the customer retention will increase. The offers can be provided for bulk orders. If there is a refund initiated, it can be directed to the wallet so that the customer keeps using the app and boosts the sales.

Push Notifications

To increase usability of app, internally we can enable push notifications in the app for reminding the customer. This can range from asking for feedback, asking to participate in loyalty program, rate the service etc..

App Updates for Delivery order and Delivery Partner details

(Order)

The issue of order being delivered wrong/product missing can be tackled with a app update that should cover the following details

1. Delivery Partner Location with Integrated Maps
2. Supplier Details and Rating
3. Contacts of both Delivery Partner and Supplier
4. Ordered Product image and description which includes quantity,date etc..

Dedicated Feedback Mechanism

For developing the customer satisfaction and delight, it is necessary to know their concerns. So we can deploy chat-handles in app to answer their queries/complaints. By this way we can receive feedback easily and address issues seamlessly. We can also update the app with dedicated contact page which includes details of head office and sourcing hubs.

Conclusion

With primary focus on customer satisfaction, by following the above mentioned recommendations and other insights from all departments, DND can scale up their business easily and earn profits. The costs for implementing all the ideas are accounted for and calculated by the finance department. The solutions offered considerably covered all the aspects and departments where improvement can be done. In case of IT, the actions for implementation are in pipeline. With specific direction from the leadership team, DND can strategically grow in coming years. The General Management of the company is equipped with enough features through software to ensure maximum co-ordination among all. The Business advisory recommendations also complement the above mentioned solutions relating to Organizational Culture and Expansion of Business. To summarize the following below are the listed challenges addressed; Bad Customer Feedback Lack of Information during delivery Morale and Status of delivery partners Bad quality products delivered Shortcomings in Sales operations Mediocre app facilities Hurdle to co-ordinate all Investment decisions Issues with partnering

Attached File Details