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What problems and challenges are faced by Moore at the time of the case Moore Medical is a medium-sized distributor of medical supplies to practitioners such as podiatrists and emergency medical technicians Up to the time of the case it has relied on traditional customer channels such as catalogs phones and faxes to communicate product offerings promotions and availability and to take orders It is now attempting to transition into a bricks and clicks distributor with a strong Internet presence It has already made substantial investments in an eCommerce web site and in back office ERP software to improve the fulfillment performance of its four distribution centers The ERP software has not lived up to expectations in all areas and the company must decide whether to invest in more modules for this system that might address its shortcomings It must also decide whether to make a significant additional investment in customer relationship management software At the time of the case Moore must decide whether it has enough of the right kind of IT The decision is complicated by the fact that the company has recently made substantial IT investments that have impacted financial performance and caused organizational disruption In addition it is not clear that all of Moores known issues related to customer retention and satisfaction will be addressed by the Customer Relationship Management CRM under consideration Problems and Challenges faced 1Share of wallet of current customers was not close to 100 due in part because the company did not offer capital goods and has a relatively smaller product range as compared to the larger competitors ie it is not a big force in the market 2Churn rate for customers as high as 35 in some categories and 30 on an average whereas the industry standard was 25 It was estimated that it was largely due to low customer loyalty and very high price sensitivity 3 Split shipments were an issue due to
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