As we can see on the table above, the number of out-of-stock complaints is the highest with 61 complaints, while the lowest complaints with 5 is the fish not being fresh. The category Others includes all other complaints that minor complaints like ATM ate card, lost wallet, dislike store decoration, etc.
Using the cause-and-effect diagram we will determine the main causes of the out-of-stock problem because it is the category which has most number of complaints.
Based on the cause-and-effect diagram, we could see that there are three main reasons for the frequent stock-outs:
1. Suppliers refuse to deliver to the markets because there are unpaid debts which have not yet been paid by Tip Top Markets. The reason for this is because the company has got not enough funds in order to pay. 2. Suppliers are also running out-of-stock and they don’t have enough products to deliver because there are not enough raw materials and importing raw materials involves great costs. 3. Lastly, suppliers can’t deliver due to some fortuitous event which is the typhoon that destroyed the crops and cause landslides in some roads which made them not passable.
First of all, in order for the company to reduce the number of complaints by the customers, they should first address and give solutions to the problems which has the most number of complaints which is the out-of-stock category. After resolving the problem, they should go on and focus on the next categories which the high number of complaints, and so on until all of the major problems are addressed. In order to resolve the problem of stock-outs, the company should make it an effort to pay its unpaid debts to the suppliers in order for the deliveries to resume.
Moreover, the company should also look for other suppliers who are not usually affected by typhoons and other fortuitous events, and that has enough raw materials and are known for honoring their delivery commitments. Lastly, Tip Top Markets should also go on an extra mile in order to make sure that they give high quality service to their customers, such as hire quality assurance personnel who would be responsible for the total quality management of the market, as well as monitor and handle customer complaints effectively and efficiently.