Project one Rene’s Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics from its Toronto factory to retailers and fashion designers in Canada and the United States. He wants to evaluate the performance of the three carriers. He collected data for the following metrics over a four-month period. Performance Criteria Allied Transport Bestway Freight Certaint Carriers On-time delivery 99% 98.5% 98% Loads with damage claims 0.8% 1.8% 0.5% Customer satisfaction ratings 4.5 4 3.8 Billing accuracy 99.2% 99.5% 98.1% Loads rejected 1.4% 2.2% 0.8% Rene asked Abimbola, his transportation manager, to develop a scorecard to help compare the carriers on these five metrics. Abimbola came up with the following chart: Performance Criteria Weight Factor (how important the criteria is to your company) Performance Evaluation Maximum Score Possible Actual Score (weight factor multiplied by performance evaluation) On-time delivery 30 more than 98.5% ⇒ 5 96.01 to 98.5% ⇒ 4 93 to 96% ⇒ 2 less than 93% ⇒ 0 150 Loads with damage claims 30 less than 0.5% ⇒ 5 0.5 to 1% ⇒ 4 1.01 to 2% ⇒ 2 more than 2% ⇒ 0 150 Customer satisfaction 20 more than 4.5 ⇒ 5 4.01 to 4.5 ⇒ 4 3 to 4 ⇒ 2 less than 3 ⇒ 0 100 Billing accuracy 10 more than 99% ⇒ 5 97.01 to 99% ⇒ 4 95 to 97% ⇒ 2 less than 95% ⇒ 0 50 Loads rejected 10 less than 1% ⇒ 5 1% to 2% ⇒ 4 2.01% to 3% ⇒ 2 more than 3% ⇒ 0 50 Total Score 500 Answer the following three questions: Calculate the performance score (actual score) for each of the three carriers Which carrier would you recommend that Rene consider for elimination? Why? If Rene decides to keep all three carriers, what should each of them work to improve?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Project one

Rene’s Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics from its Toronto factory to retailers and fashion designers in Canada and the United States. He wants to evaluate the performance of the three carriers. He collected data for the following metrics over a four-month period.

Performance Criteria	Allied Transport	Bestway Freight	Certaint Carriers
On-time delivery	99%	98.5%	98%
Loads with damage claims	0.8%	1.8%	0.5%
Customer satisfaction ratings	4.5	4	3.8
Billing accuracy	99.2%	99.5%	98.1%
Loads rejected	1.4%	2.2%	0.8%

Rene asked Abimbola, his transportation manager, to develop a scorecard to help compare the carriers on these five metrics. Abimbola came up with the following chart:

Performance Criteria	Weight Factor (how important the criteria is to your company)	Performance Evaluation	Maximum Score Possible
On-time delivery	30	more than 98.5% ⇒ 5 96.01 to 98.5% ⇒ 4 93 to 96% ⇒ 2 less than 93% ⇒ 0	150
Loads with damage claims	30	less than 0.5% ⇒ 5 0.5 to 1% ⇒ 4 1.01 to 2% ⇒ 2 more than 2% ⇒ 0	150
Customer satisfaction	20	more than 4.5 ⇒ 5 4.01 to 4.5 ⇒ 4 3 to 4 ⇒ 2 less than 3 ⇒ 0	100
Billing accuracy	10	more than 99% ⇒ 5 97.01 to 99% ⇒ 4 95 to 97% ⇒ 2 less than 95% ⇒ 0	50
Loads rejected	10	less than 1% ⇒ 5 1% to 2% ⇒ 4 2.01% to 3% ⇒ 2 more than 3% ⇒ 0	50
		Total Score	500

Answer the following three questions:

Calculate the performance score (actual score) for each of the three carriers
Which carrier would you recommend that Rene consider for elimination? Why?
If Rene decides to keep all three carriers, what should each of them work to improve?

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