Student’s Signature: Bernard Marrying, Instructor’s Grade on Assignment: instructor’s Comments: Monika India: Battery Recall Logistics Bernard Marrying SCM 5830 February 23, 201 5 Dry. Ryan Atkins Executive Summary The case analysis below presents the difficulties faced by Monika India in 2007. Monika had developed large brand recognition over a decade and was the market leader in India in the mobile device market. In 2007, Monika corporate had considered a routine product advisory for a product defect recall, exulted in overwhelming panic from customers after the Indian media exaggerated the potential dangers of the defective battery.
Over a three month period, Monika expected to potentially recall approximately fifty to sixty thousand batteries but ended up having to answer to over three million requests for replacement. Along with the unexpected volume, they had to replace these batteries in a market with poor infrastructure for logistics. Problem Statement After analyzing the case at hand, there are few core questions used to make a recommendation to Monika Indian’s CEO First, what is my role as a CEO during a reduce recall situation and with whom would be communicating and/or coordinating to execute this role?
Second, what aspects of the recall were well handled and what aspects have room for improvement? India is a complex emerging market with limited infrastructure and various cultures Core Questions Analysis Mobile customers in India purchased their devices independently from their mobile services. Because of this method, Monika has direct sales contact to the customer instead of a mobile service provider who could potentially have a better customized relationship with its customers. The first mistake Monika made was to underestimate the volume required for battery replacement.
Initially, Monika estimated anywhere between fifty and sixty thousand recalls. Due to the media exaggeration of the problem with the battery, customers panicked and did not follow the protocols set up by Monika. The role of Indian’s CEO should have been to recommend to corporate the need of a supply chain capability and strategy to adapt and deliver in case of a recall to any issue with their mobile device (Charles Dangers, 201 1). After initial panic and immunization failure with its customers, Monika changed their strategy by creating a team of local expert in logistics to coordinate the task at hand.
The group created an advertising campaign aimed directly to its consumers. Its focus was to eliminate customer concerns regarding the problem With the BAL C batteries and providing them the information on how to check for a defective battery and process to replace. Each customer care center across the country was assigned a Monika promoter who was specifically designated to assist walk-in customers to inspect and/or replace battery on site. Another ajar issue arose with the recall process of Ionians faulty battery. This was the reverse logistics strategy that would be needed to support the replacement of the component.
Currently there were not enough logistics service providers with the capabilities to support an immediate reaction plan. There was also a problem of how Monika could get around the value added tax issues when crossing different state lines within the country. There was not an existing process in place with the different systems to generate orders that were free to the customer and still including the tax repercussion of these orders. The aspects that were handled well were establishing promoters within each of the customer care centers to quickly handle any defective battery customers need.
Also, instead of only requiring customers to use the internet to create a claim, Monika was able to reach out to their affected customer base via SMS and giving them another means of creating a claim for a replacement battery. In terms of logistics, allowing DEL to set-up shop and handle the reverse logistics process as well as identifying a solution for the value added tax difficulties allowed Monika to quickly take control of the placement process without any additional panic by its high customer base within the market.
Conclusion and Recommendations The Monika India executives eventually corrected the problem. They were able to establish proper communication channels with its customers and providing them easy and efficient ways of replacing the defective battery. They worked with local third party logistics companies as well as multinational corporations to establish a process of repacking their batteries to include all the data required for it to pass through any customs or compliance checkpoints.