Question

CASE 13-1: Sustainability and Night Delivery¹⁷

1. Create a list of benefits for adopting night deliveries, including (but not limited to) those that are mentioned above.

Cyclone Ice Cream LTD benefits of night deliveries

• Low emission of truck due to favorable time at night with less traffic and more speed possibility
• Avoid making deliveries of products at the peak hours to the stores and lowers disturbances and waiting time.
• The rate of vehicle utilization is improved
• Fleet size is lowered for meeting customer demand
• Parking fines can be reduced
• Roadside parking is possible at night due to less traffic
• Less pollution and noise.

The benefits above are enjoyed by Cyclone Ice Cream LTD

2. Create a list of disadvantages associated with night deliveries, including (but not limited to) these that are mentioned above.

Disadvantages associated with night deliveries

• Trained staff with expertise to drive at night is required
• Costs to pay more for training and increasing shifts for night time deliveries
• High costs of heating and lighting is required to transport specific goods
• Certain cities may not allow deliveries at night due to disturbance reasons
• Driver may feel tired and restless at night deliveries
• Higher risk of theft and accidents
• View of small things on the road is not very clear during night time.

The disadvantages above are faced by Cyclone Ice Cream LTD in night deliveries

*How would you structure your response from a financial perspective (Forecast Income Statement "Pro Forma") since the Bottom Line is the driving force in business?

Answer 1

1.Adopting Night Deliveries Advantages/Benefits-

1. Low Traffic so easy to Reach to consumer within time.

2. If food is hot or cold(Frozen ice cream) then it delivered within time so customer always Satisfy.

3. Increase Growth of Company cause customer is always satisfied Getting better Quality foods or product within time.

4.At Night Traffic level is low, so no worry of jam traffic, which always save Petrol/Diesel and company cost.

5.Always delivery of foods and Product On Time.

6.Customer always satisfied cause of 24 hours open restaurant service, so they can Order any time..

7.At night Deliveries Quantity is more than regular business hours so its beneficial for Company Profit.

8.Beneficial for employees who deliver product at night, then can do another job at Day shift and earn more so, beneficial for employees.

9.At night Deliveries There are Few Competitors available, so Less Competition for night Deliveries which is beneficial for Company to make more Profit.

10. Night Deliveries add more hours to Company to make more Profit.

11.At Night deliveries food and Product Delivered within time so, need to spend more on Hot and cold Equipment accessories cost.

12. Parking is easy, at night Deliveries, vehicles can park anywhere.

2. Adopting Disadvantage of Night delivery

Have to discuss about night delivery its disadvantages then there are few disadvantages of night deliveries

1.Company have to spend more Wages to employees for night Deliveries compare to Business hours day

2.At Night deliveries Operating cost increase.

3.Most of customer not ready to Accept Night deliveries, due to Night Crime and Theft's.

4.At Night Deliveries Chances of Stolen Company Goods and Product, foods,

5. At night Deliveries Due to Night, Driver have to face Visual problem compare to day

6.At night Deliveries Customer always want Door step Deliveries, they don't Came Any Street Point or main area for taking Deliveries so it will increase operating cost of company.

7.At night Deliveries Only Kitchen and Field staff are working, so if any customer have any issue then it solved next business day. So these type of problems have to face to customer At night Deliveries.

8.At Night Deliveries Due to Darkness drivers Facing problem To identify address or Roads.

So these are night delivery Advantage and Disadvantage list which have to Adopt companies for night deliveries.