In half a page, discuss why it is important for Netfrolist to utilise a well-managed MRP system in order to satisfy customers who request same day delivery.
Netflorist’s transition to retailer
At recent forum at the Gordon Institute of Business and Science (GIBS) the Net florist story
was relayed by Ryan Batcher, MD and co-founder of Net florist. He also explained how they
went from being ignorant about all things to do with flowers (except for roses) to becoming the
leading online florist retailer in South Africa.
Net florist was launched in 1999 as a test case for an e-commerce company in South Africa,
when online retail was still in the early stages of development. Bacher said they knew nothing
about flowers therefore there was very little initial focus on food fulfilment, strategy industry,
customer loyalty online the only differentiator in our industry is product and service we have
to innovate he said since expanding our offering in true gifting confectionery and bakery
products and same day personalization of gifts, 60% of sales are from flowers and 40% OF
sales are from non-flowers with an average order of R400’’. Future product extensions include
an exploratory foray into fresh fruit and vegetables delivered to homes as well as international
deliveries with local offerings set to launch in Singapore Malaysia and India . “We have to do
the things that are slightly different in difficult to copy to build a Moat around the business oh
we will immediately attract imitators” butcher said “the key is to focus on the core while at the
same time to be good at exploring new things”
Source : Ramgovind and Engelbrecht (2021)
1.1 In half a page, discuss why it is important for Netfrolist to utilise a well-managed MRP
system in order to satisfy customers who request same day delivery.
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