1.

By looking at the experiences of other online store companies that make mistakes in making
decisions in terms of fast delivery of goods to customers, I agree with what is done by Red-
Kitchen.com. Outsourcing is "the act of taking several internal company activities and being
responsible for the decisions of outside providers" (Chase & Jacob, 2018, p.408). The
decision made by Red-Kitchen.com to outsource is the right course of action. Outsourcing
done by Red-Kitchen.com makes the company does not need to spend a large budget. Instead
of other companies, Red-Kitchen.com saves the company in terms of distribution. The
transfer of funds from the construction of warehouses in several target areas can be allocated
to finance distributor partner companies. With a strategy like this Red-Kitchen.com can focus
on distributing and providing goods for buyers. Red-Kitchen.com might be more patient in
bringing up its products, this is because many customers are still interested in products that
are already well-known. Red-kitchen needs to slowly introduce their products while still
selling other products that are already well-known among the people.

2. Red-Kitchen should also outsource or outsource handling of product returns from buyers.
Outsourcing that can certainly speed up the process of returning products or money made by
consumers, but must be balanced with cooperation conducted with third parties.

3. Return policy that would be the most appropriate for Red-Kitchen.com to their customer is
refunding the customer money with some requirements. The customer should not send the
meals back to HQ. The refunds will be applicable when there are an incorrect meal delivered,
damaged/broken products, a poor quality ingredients or delivery errors out of the customer’s
control.

4. The core competency owned by Red-Kithen.com is online food sales where goods will be
delivered quickly and the technological excellence where Red-Kitchen is very focused on the
technology it has that makes it easy for buyers to make purchases, questions, and complaints.
One of the technologies used is Siva where Red-Kitchen.com provides interface interaction
with consumers.

5. There are several risks in the last-mile delivery service.

 a. First, last-mile deivery have the most expenses from the entire supply chain.
Reporting from Capgemini.com, there are about 40% of consumers often use
shipping services. As services began to expand and expand, the provision of last-
mile services accounted for 41% of the overall supply chain costs. This shows that
expenditure is more than double the amount of other expenses. This risk will be
fatal when online shopping shipments increase and also the cost for last-mile
delivery services will increase the proportion of supply chain costs

b. Second, increasing the volume of shipments will negatively affect the overall
profitability of a company. Online shipping orders are unconsciously less
profitable than in-store orders. Capgemini.com on its website says that "on
average, 19% is less profitable than in stores".

https://www.capgemini.com/wp-content/uploads/2019/01/Report-Digital-
%E2%80%93-Last-Mile-Delivery-Challenge1.pdf

6.