oore Medical Corporation

Team 4
Siva Kumar Desetti
Suma Prasanth
Pulakala
Gourab Malalkar
Suchitra Behara
Roshni Jayaraman
Roshan Singhania
Shikha Gupta

Q1.Which new information systems, if any, should Moore purchase? How did you arrive at
this decision?
Major Problems being faced by
Moore:

Ordcers
Perfect
Back orders

Split shipments
Late Shipments

Churn Rate
40%
35%

5%
10%

35%

30%

25%

25%
20%

17%

15%
10%
68%; 68%

5%
0%

Moore Medical

Industry average

Churn rate

Only 68% of the orders were

prefect orders

Higher churn rate compared to

industry average

Less share of wallet

while having more
penetration rate in the
same
customer group
Passive demand
forecasting: The ERP
system bought from JW
Edwards lacked many
features one of them was
demand forecasting.
Rather than providing
proactive demand
forecasting, its providing
reactive demand
forecasting

Efficient CRM system:

Improves effectiveness of the Sales Reps by

enhancing features like multitasking,
monitoring and full time tracking
Integrated record of all costumers enhances
effective scheduling of sales persons to
improve consistency with costumers
Enhancing the sales forecasting along with
the reason for winning or loosing deals

Bolt on software to existing ERP

It includes demand planning system which
will create purchasing
requirements based on previous history and
future planning activity
It also includes three additional modules
a)Warehouse transfer system, b)Deal
Management, and c)Inventory stock
simulation, which will save purchase order
cost and enable MMC to carry less inventory
while high
service level

Besides the main problem for Moore Currently is demand forecasting which solves 27% of the
orders and improves the profitability
Moore was not sure whether the reason for less profitability is lack of costumer relationships or
their narrow product offerings so its better to go with bolt on software than CRM

Q2.What are the most important things that Moore does not know about its customers at the time
of the case?
What are the best
for
the company to obtain this knowledge?
Areways
there
certain
Why the number
of loyal
When do the customers need
segments that are
customers is less than the
additional supply?
willing to pay more for
industry average? narrow
Add on a module to ERP that
the
high
levels
of
product line or
allows the company to
service that
price sensitivity?
forecast when specific
Moore Medical offers?
Narrow product line - set up
customers will
If so then these
more distributor agreements
require a reorder of a product
customers need to be
and have big ticket items sent
and in turn push the inventory
segmented down further
directly to their customers.
straight through the system.
using the above
Price sensitivity - Approach
This would increase customer
mentioned
several key customers within
satisfaction and minimize
testing approach.
each segment and indicate that
inventory shelving time for
How to attract and
price are marginally increasing.
Moore.
retain costumers for
Price sensitive customers will
Can also be obtained through
ecommerce?
resist such change whereas
CRM implementation.

Online
surveys
and
other
loyal wont be much affected.
discount schemes will let
Give certain price discounts to
us know about the
see if some customers come
demand variation of
back
online costumers
Through this analysis different
segments can be identified and
the un profitable ones can be

Q3.What are the pros and cons of Moore's move into ecommerce / online ordering? Do you agree that this was
a good move for the company?
Pros
New customers from a completely new segment
attracted by website accounted for 13% of online
orders. They were projected to account for
$500,000 within in the next year.
Less reliance on sales person which saves labor
costs
Number of orders grew from 1438 to 2,218, an
increase of over $220,000 per month in additional
income
As 87% of the customers were converted from
other channels it increases the pressure on
salesmen
Increases convenience of the costumers as they
can compare prices and services
Online Catalog saves Printing costs too.

Cons
It was too expensive which let the company
suffer losses in 2000.It prevented Moore
from investing in other projects
Costs are expected to rise if further
programmers were hired by 75000$ to
100,000$
It is an impersonal selling tool and some
customers who prefer high-touch service
may be dissatisfied due to lowering of
perceived value. This could possibly result
in increased churn rate

Yes, we believe this investment was a good move for the company because of
the following reasons:
Online sales have increased new customers "wins" by 13% and established a
new target market for the company to pursue, which is projected to account
for approximately $500,000 in new business in the upcoming year. Financially,
this was a good move for Moore.
This consumer market did not require direct mail solicitation or outgoing
phone calls from existing sales staff, thereby increasing profits from this
segment.
Existing customers are also drawn to online ordering, as 10% of existing
clients
are expected to use this system instead of other channels in the next year.
Despite initial extravagant costs due to the transformation from traditional
catalog to brick-and-click model, the amount of business generated from the
website, projected at $544,732 per month means that the rise in costs should
be nullified by increase in sales.