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Cash-On-Delivery and Reverse Logistics

CASE FLYER, MARKETING MANAGEMENT
ET Cases, 5 pages
AUTHOR(S) : Syed Abdul Samad and Dr. Nagendra V Chowdary

Case Preview

Cash-On-Delivery and Reverse Logistics

 

Expected Learning Outcomes

• E-commerce, its feasibility for businesses and how they achieve operational excellence
• Why customers prefer Cash-On-Delivery compared to transactions through debit/credit cards
• Role of logistics and how e-commerce companies can reduce the instances of reverse logistics

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E-Commerce and Operational Excellence

1. What is e-commerce? What is the difference between e-commerce and e-business? Name a few e-commerce companies in India.

2. Comment on the kind of businesses that can be done online? When do you think is e-commerce feasible for a business (Exhibit I)?..............

The Role of Logistics and Operational Excellence

1. What is the role of logistics in achieving operational excellence for any e-commerce company?

2. Have you bought any product from any of the e-commerce companies? What was the product and what has been your experience? Can you connect your response with Question no. in the previous section?

3. ..........

Value Chain and Cost Drivers

1. Using Michael Porter’s Value Chain concept, how do you think e-commerce companies can boost their revenues and reduce their costs?

2. The accompanying article states that the leakages in the process are still a concern for COD-based companies. What do you think could be the possible leakages (Exhibit II)?

3. ..............

Teaching Note Preview

Cash-On-Delivery and Reverse Logistics

 

Synopsis

The focus of this case flyer is on reverse logistics. Reverse Logistics comes into picture when an e-commerce company delivers the ordered product to the customer and the customer returns it due to various reasons. It happens mostly due to the Cash-On-Delivery (COD) model that the Indian e-commerce companies follow. The article highlights the additional costs that are incurred and the leakages that happen in the system due to the returns. In addition to these issues the case flyer provides scope for discussing as to how companies and other regulatory bodies could encourage the use of debit and credit cards instead of COD and how instances of reverse logistics can be reduced.

Expected Learning Outcomes

  • • E-commerce, its feasibility for businesses and how they achieve operational excellence
  • • Why customers prefer Cash-On-Delivery compared to transactions through debit/credit cards
  • • Role of logistics and how e-commerce companies can reduce the instances of reverse logistics

 

Positioning and Setting

The case flyer can be used in the following courses:

  • a) Business Strategy (Value Chain concept)
  • b) Logistics (Reverse Logistics)

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Suggested Orchestration

Before the Case Flyer Discussion in the Classroom

a) The students/participants were asked to read the article Customer Intimacy and Other Value Disciplines1. The article highlights three paths for market leadership – customer intimacy, operational excellence and product leadership. After reading the article, the students could relate to the e-commerce business model and the need for operational excellence required for success in such a model.

b) The students were also asked to visit few e-commerce websites – amazon.com, flipkart.com, myntra.com, yebhi.com, Jabong.com, etc., – to understand their customer value propositions and the operating process.

c) Most importantly, the students were encouraged to analyze all the questions given in the case flyer (either individually or in learning teams or appropriate discussion forums) to enable them to participate effectively and enrich the learning outcomes.

During the Case Flyer Discussion in the Classroom

This case flyer can effectively be discussed in the classroom under three broad topics.........

The flow of questions to be discussed in the classroom has been elaborated in Annexure (TN)-I: The Board Plan

I. E-Commerce and Operational Excellence

• The class was started by posing a direct question about the concept of e-commerce, its advantages and disadvantages. Students were well aware of the concept and listed out the pros and cons of e-commerce and shared a few examples of e-commerce companies. Most of them also had the experience of buying goods through these websites.

• Then, the students were asked to categorize the kind of businesses that could be taken up through e-commerce or what kind of products could be sold online. Here the ‘e-commerce feasibility matrix’ [Exhibit (TN)-I] was used to explain the suitability of any business to the e-commerce concept.

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Product code: MKTG-4-0002, MKTG-4-0002A

Abstract


This case flyer is based on an article1 from The Economic Times and discusses the concept of reverse logistics. What is the role of logistics in e-commerce? What challenges does reverse logistics pose to an e-commerce company? What should companies do to reduce reverse logistics? The case flyer is suitable for teaching courses in Business Strategy (Value Chain concept) and Logistics (Reverse Logistics). The case flyer provides scope for discussing the pros and cons of Cash-On-Delivery (COD) model in e-commerce businesses and deliberates on the issues and implications on the e-commerce companies. Finally, it enables a debate on the possible leakages that occur in the COD model and what could be done to reduce instances of reverse logistics.


Pedagogical Objectives

  • To understand the concept of e-commerce, its feasibility for businesses and how they achieve operational excellence
  • To understand the concept of Cash-On-Delivery and why customers prefer it compared to transactions through debit/credit cards
  • To deliberate on the role of logistics and how e-commerce companies can reduce the instances of reverse logistics



This Case Pack Includes:
- Abstract
- Case Flyer
- Analysis
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