Strategic Management: Agarwal Packers & Movers Ltd. Case: Group 9

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Strategic Management: Members:

Agarwal Packers & Mazood Rahman MBA20295


Movers Ltd. Case Musaid Helal Khan MBA20178
Esha Gupta MBA20168
Group 9 Hareb Kallangodan MBA20266
Deepak Raj MBA20291
Sumit Kumar MBA20271
CORE OBJECTIVES OF THE CASE

• How adopting a customer-centric approach shaped innovations


at APML?
• How differentiation strategy helped APML to improve customer
experience?
• How consistency in Operations were maintained and sustained
in a large organization?
• How organizational structure helped in achieving operational
excellence?
• The importance employee motivation in improving productivity
and output.
• Incorporation of TQM process in their Operations.
CORE OBJECTIVES OF THE CASE
(contd.)

• Strategic placement and utilization of the Customer Care


Department.
• Coordination of operations between departments.
• Perks of having a dedicated R&D Team.


The 4 learnings of my successful journey:
1. Think ‘Out of the Box’.
2. Customer is my Guru.
Mr. Ramesh Agarwal
Founder
Agarwal Packers & Movers Ltd.

3. Treat your stakeholders like family.


4. Give back to society.
Source: https://www.youtube.com/watch?v=m9r9C48oKS4
Q1. What are the differentiation strategies
pursued by APML?
• For high number of complaints about malfunctioning of television sets
after 5-6 months of relocation which were packed in the wooden
crate sealed using nails
Solution: They made specialized reusable LED boxes for value fragile
items like TV which was layered with soft cushion from inside to provide
extra protection to the screen and had a shock absorbing sheet. Also,
reducing the packaging cost from Rs 800 to Rs 2000 per LED/LCD
packaging
• Feedback regarding damaged fragile items during shipping
Solution: Special Perfect boxes were introduced which were foamed from
inside to ensure utmost safety. These packages were also sealed with
security stickers which had to be signed by the customer after packing
which enhanced customer trust.
• Problems with while packing their religious items since the client’s
sentiments were associated with their religious possessions?
Solution: APML team came up with the unique idea of Mandir Packaging
with the Mandir Stickers. From the success of this approach, APML is
able to serve customized relocation needs of the customers.
 What are the differentiation strategies pursued
by APML?
• Trans-shipments were leading to increase in damaged consignments and trucks were
often left unutilized due to storing customer's goods

Solution: The R&D team developed 'Trucking cubes' containers, which were independent
units which could be attached to carriers. The containers ensured that trucks could be
utilized while the 'trucking cubes' containers kept consignment as a whole while also
reducing damage and shipment tampering.

• Driver exhaustion and lack of motivation could prove detrimental to process efficiencies
and cause unnecessary added costs.

Solution: The company introduced a scheme where a co-driver accompanied the driver,
allowing for longer miles per day and incentives were given based on the number of hours
instead of distance to discourage speeding and risky driving which caused damage to the
consignments.
Key Trade-offs

• Incremental Profit Sharing – Gain and Share


• Sharing 50-60% profit at employees

• Reactive Vs Proactive
• Improvisation in operational process after customer complains

• Taking Responsibility for the complete user experience


• Structuring the company to fit their ideals
• Hospitality
• Operations
• Ownership (Branch Malik System)
Key Trade-offs

• Incremental Profit Sharing – Gain and Share


• Sharing 50-60% profit at employees

• Reactive Vs Proactive
• Improvisation in operational process after customer complains

• Taking Responsibility for the complete user experience


• Structuring the company to fit their ideals
• Hospitality
• Operations
• Ownership (Branch Malik System)
Key Trade-offs

Investing heavily in R&D


• Managing Packaging Costs
• LED Box
• Perfect Boxes
• Coat Carriers
• Fillers
• Religious Items
• Potted plant carriers
• Trucking Cubes (8, 11, 16 feets)
• Modifying existing trucks
Key Trade-offs
Key Trade-offs
Key Trade-offs

Khoob Chalao Khoob Kamao


• Shortage of drivers (770 per 1000 trucks)
• Pay extra per km
• Increased speed, damaged consignments & Exhaustion
• Driver and Co-driver system

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