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Hello Members,
I need help with formulating a solution for below challenge;
Your team currently delivers 30 mattresses per day to homes within the greater area. The goal is to grow this capacity within 18 months to 200 mattresses per day.
You know your current delivery model isn’t as scalable or cost effective as it needs to be:
1. Trucks are loaded each morning from our factory in industrial area. A truck is manned by a driver and one assistant.
2. Given time constraints arising from traffic conditions and time between deliveries, each 3-ton truck can only deliver 12 mattresses per day, even though it can hold 40-50 pieces by volume.
3. Your cost per mattress delivered is nearly USD 10 per piece given that the monthly fixed costs of depreciation and driver/assistant salaries are spread over a relatively small throughput per vehicle.
4. Route planning decisions are made by your warehouse supervisor each morning based on proximity of orders – given the current volumes of 30 mattresses/day across the routes are still somewhat dispersed
Give solutions on how to tackle this problem:
Propose a delivery model that you believe would be scalable to 200 mattresses per day and achieve significantly lower unit delivery costs.
Please cover the following in your proposal:
• Facilities – any changes that would need to be made from a facility set up or improvement perspective
• Equipment – type of vehicles and any other equipment you would need in your model
• Process – key aspects of how the delivery process will be organized from when an order is submitted from the sales team until a smiling customer has received their mattress
• People – how you will prepare your team and manage the change from our current delivery model and scale to your proposed model
• Timeline – what is your action plan and the major milestones to get from where we are now to seeing your proposal working in practice 18 months from now
Please keep in mind the following constraints:
• Customers expect delivery within two working days
• Delivery is an important part of the customer experience – delivering the mattress with a smile
• All mattresses are produced from the factory in industrial area and it’s your team’s responsibility to move/store from that point onward
• Deliveries will stay “in-house” i.e. we will own the vehicles and delivery staff will be on our payroll, the end to end process will be managed by your team
• Keep your response to a level of detail that can fit in 2 pages or fewer