MOORE MEDICAL

Group 6, Section A

Aishini Sinha 2019PGP032

Shreya Unnikrishnan 2019PGP391
Ashish Kovuri 2019PGP216
Anakha R 2019PGP536
Vishnu Kumar Das 2019PGP473
Kavan Vaghela PGP2019452
Tulika Khabia 2016IPM114
Prateek Raj 2019PGP309
 Which new information systems, if any, should Moore
purchase? How did you arrive at this decision?

Moore should purchase ERP bolt-ons. An additional investment of $600k to purchase

bolt-on software is necessary to realize the $7 Mn investment made in the ERP. They
should also train their employees thoroughly about ERP. Choosing ERP due to following
reasons:

 ERP systems was poorly implemented. Moore’s performance on the “Perfect Order”
was way below their expected goal of 90%

 There was an internal demand for ERP in the organization combined with proper
training.

 Benefits of ERP are clear, it includes : Reduced split orders, improved ordering from
suppliers and faster shipping. However the CRM is an unknown territory for them.
What are the most important things that Moore does not know about its
customers at the time of the case? What are the best ways for the
company to obtain this knowledge?

Following are the most important things that Moore was not aware about it’s customers:-

1) There was a lack of understanding about the customer preferences and their behaviour. The proxy that is
giving this information is that 30-35% of the customers are leaving while as per industry rates it is just 25%

2) They are not understanding the trade-off for the customer visitation schedule for the people doing sales.

3) Customer wanted a single source for all its medical purchases but found that Moore was unable to meet the
demand of the customer.

The best way for the company to obtain this knowledge:-

1) Some customers who care about the price are more in certain market segments, hence this should be a
trigger point.

2) Some customers who call 1800 number seems to be interested but they are not buying the items and hence
company should get the hint from this.
 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
 87% customers would migrated to online retail from other platforms such as phone and fax
and 13% of new customers would be added.
 This would result in revenues up to $500,000.
 From 1423 to 2218, the number of orders per month increased as given in exhibit 7.
 eCommerce is the future of all retailers, and ignoring this will cause the company to lag be
hind in adopting new technology
 Customers could navigate the site on their own which would reduce reliance on
salespeople thus saving on labor costs.
 Printing costs would be saved because of the website’s full catalogue.
 Customers would now be able to compare products and costs which would save their time
and money.
Cons
 The cost of developing the website was an overhead of $1.5 million.
 It is also an extra effort and expense to train sales representatives to answer customer queries easily.
 Costs associated with website design and recruitment of key personnel were high and profitability decreased in
2000.
 Would cost extra $75000 to $100,000 per person for adding 2-3 new personnel for technology programming
skills

WAS IT A GOOD MOVE

 Yes, entering the online e-commerce business was good for the company as E-commerce is the future of retail.
Ignoring this would make the company lag in adoption of new techniques.