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Falcon Logistics: A Truck Fleet is Fleeting
A Case Presentation by Group 1
POINT OF VIEW
In analyzing the case, the point of view of the vice president of warehouse operations at the Philippines-based logistics provider Falcon Logistics, Inc. (popularly known as Falcon) was considered. Falcon Logistics is one of the subsidiary companies of Falconer Corporation, the country’s largest integrated logistics solutions provider. So when the Falcon experienced problems, its management, specifically its vice president has to take action- making this case fall under the point of view of Mylo T. Melendez, the vice-president of Falcon Logistics, Inc.
I. Point of View
MARKET
SITUATION ANALYSIS
II. Market Situation Analysis
SWOT
WEAKNESSES
• The coordinators sometimes get in a heated discussion regarding the warehouse operations in the business.
• Falcon do not have enough delivery trucks to meet demand during peak time.
• It uses cross-docking as its distribution system.
• They experience scarcity of trucks during peak times.
STRENGTHS
• Falcon provides easy access to the company’s wide range of services to the customers because of it being the single point of contact.
• It uses cross-docking as its distribution system.
• It is one of the subsidiary companies of the country’s largest integrated logistics solution provider, Falconer Corporation.
• It can easily request trucks from third party logistics (3PL).
OPPORTUNITIES
• Technological advancement is already present in the market.
• They have several warehouses in the country wherein they can distribute the load of work.
THREATS
• The business is affected by the country’s road management (e.g. traffic, reconstruction of roads, etc.)
• The business itself is considered a challenge for the retail sector in the country due to its archipelagic geography.
• Technological advancement.
PLC
PRODUCT LIFE CYCLE (PLC)
The Falcon Logistics, Inc. is currently in the growth stage for it has great need to increase its distribution to more customers simultaneously. The company is established to cater the needs of the customers but constrained with limited trucks. Opportunity exists in expansion which must be taken advantage of to address the scarcity of distribution trucks and to increase their market share and eventually, their profit.
TARGET MARKET/S
Target Market
The Falcon Logistics, Inc.’s target markets are the local and multinational companies in the consumer manufactured goods, retail, automotive, electronics, healthcare, food, and fashion industries.
Generally, the target market are the businesses and/or people who are involved in shipping goods in different areas in and outside the country. With the current trends in technology, there is a high opportunity for the company to expand its market to both internal and external customers.
Product Positioning
PRODUCT POSITIONING
The company’s service was positioned to cater the customers demand to receive its desired shipped products time. However due to the country’s road management issues and company’s resources (ex: trucks), some requests are not executed on time.
Current Marketing Mix
7Ps
CASE PROBLEM
What strategies should Mylo T. Melendrez do to meet varying demands for distribution services in terms of delivery volume and clients’ preferences?
III. Case Problem
CASE OBJECTIVE
IV. Case Objective
The objective of the case is to help Mr. Melendez formulate a better solution that would be best fit to address the company’s logistics problem.
ALTERNATIVES
?
V. Alternatives
1
1
Buy Additional Truck Fleet;
Expand Cross Dock Facility;
Become Third Party Logistics Provider of Mober App through Long-term Partnership
2
2
Buy Additional Truck Fleet;
Expand Cross Dock Facility;
Buy the Mober App
3
3
Buy Additional Truck Fleet;
Expand Cross Dock Facility;
Create a New App
4
4
Request more trucks from Third Party Logistics Providers;
Expand Cross Dock Facility;
Buy the Mober App
5
5
Request more trucks from Third Party Logistics Providers;
Expand Cross Dock Facility, Create a New App
DECISION CRITERIA
4
RECOMMENDATION
ALTERNATIVE 2:
Buy Additional Truck Fleet;
Expand Cross Dock Facility;
Buy the Mober App
VI. Recommenda-tion
PROPOSED STRATEGIES
VII. Proposed Strategies
1. Target Market
2. Positioning
3. Marketing Mix
- Product
- Price
- Promotion
- Place
- People
- Process Management
- Physical Evidence
FUTURE TRENDS
Technology has a significant contribution in envisioning the future trends of the company. Since Philippines has a unique archipelagic geography, communication through the use of technological tools will be essential in making transactions. But these technological improvements might create a negative impact since communication would be easier, a company might just do business directly from another company in such a way that they need not hire trucks for their distribution services.
VIII. Future Trends
CONTINGENCY PLAN
In case the chosen alternative fails,
purchasing of an additional truck fleet,
expansion of cross-dock facility,
becoming a third party logistics provider of Mober App
through long-term partnership will be recommended
for Falcon Logistics. This will increase the distribution
capability of the company, accomodate more trucks
which are to deliver high turn over products immediately,
and be able to satisfy both sides of their clients that
prefer and do not prefer the use of Mober app by
establishing the long term partnership.