Wrong order deliveries have increased by 30% for a fashion & lifestyle e-commerce company. As a product manager, how would you identify the root cause and solve the problem immediately?
You'll get access to over 3,000 product manager interview questions and answers
Recommended by over 100k members
1.1 Clarify the question
How do we identify incorrect order deliveries?
What is the time frame for the 30% increment?
What is the source of data for the information?
Let's assume that within the last 14 days, the ratio of wrong size items received to the total number of delivered packages increased by 30%. The source of data is feedback from customers who requested an exchange of items.
(Of course, there are two other typical scenarios: receiving the wrong item and not receiving the package at all. Since the percentage is 30%, I will exclude the possibility that the source of the data is inaccurate, such as customers receiving the right item but intentionally reporting incorrect information.)
2.1 Rephrase the question
Skip
3.1 I will use three steps to find the root cause and solve the problem:
Identify the problem stage. I will list all stakeholders and map the 'user journey of the package.'
Find and verify the assumed root cause.
Design a solution, analyze risks, and weigh trade-offs.
3.2 Identification of the problem stage
3.2.1. Four stakeholders and a simple user journey
CRM - the part that sends info to the warehouse.
Warehouse - the part responsible for putting items into the package.
Dispatch - the part responsible for attaching labels to the package.
Delivery - the part responsible for delivering the actual package.
3.2.2. Analysis
Since the issue involves receiving wrong-sized items, we can exclude stages 3 and 4, as they would only affect 'whether the package is received or not.' Thus, the root cause could be in stage 1 or 2. I also exclude stage 4 as I don't delivery men have the ability to swap the size of the items.
3.3 Find and verify the assumption
To determine whether the problem is due to the CRM or the warehouse (incorrect information or execution), we can examine the fulfillment instructions. Depending on the website's volume, we can use a full-volume examination or sampling examination for the returned packages.
If the items in the returned packages do not match the invoice, it is likely due to fulfillment.
If they match the invoice, it is likely because of a mismatch between the invoice and the CRM (the CRM is not printing or displaying the item the customer ordered).
3.4 Solution and verification of the solution
If the issue is with fulfillment, check the fulfillment machine (apologies, I am not familiar with logistics).
If the problem is with the CRM, check the CRM's configuration.
The key is to compare the changes made or the system adjustments before and after the problem occurred. This includes system configuration, hardware configuration, human resource changes, and item changes.
For example, if we find out that the pattern of the tag on the item changed and caused the misrecognition of the tag by the fulfillment system, we can update the system, attach new tags, or notify the tag provider.
3.5 Trade-offs or risks
I will verify if the percentage of feedback on wrong delivery decreases.
The risk here is that in the assumption we are taking customers' feedback as our resource which is not accurate.
During the improvement, we also have the possibility of introducing new issues which I didn't cover in my answer
Few clarifying questions are needed here, 30% seems a lot.
- Is this gradual or sudden? (Gradual)
- What do you mean by Wrong delivery, is it among the following?
- Items were delivered to the wrong address.
- Wrong items are delivered. (This is the issue)
- Is this region-specific? (Across region)
- Is this specific to some product category? (Yes, a particular category is observing this issue.)
- Is this specific to some user segments only? (Across all users)
- What metric are we looking to understand this:
- No. of items that are returned by the consumer
- Customer query or support tickets for that particular category
- # of issues with damaged packaging
- # of issues with late delivery
- # of issues with different items
- # of issues with product quality received
- # of issues with items missing
- # of issues with used items
- # of issues when users are returning items that are used or packed
- Is there an issue with product metadata, to understand if the mismatch is happening due to what users order and what we deliver.
- Is there an issue at the warehouse where a particular category of items are not analysed properly before packaging?
- Is there an issue with the merchant inventory to understand if the items are not analysed properly before packaging?
- Is it happening at particular supplier or all the supplier that is providing these products.
- Analyse the reviews for the app
- Analyse the review for the product category
- Analyse the ratings given after the product delivery (assuming the ratings are asked for once we deliver the product)
- Avg. days to ship the product vs. promised delivery date, is there a significant difference here?
- Is there some promotional marketing campaigns that we are doing wrong, showing something else vs. shipping something else?
- Is it due to some bad PR related to the category or our platform?
- Is there some regulatory issue with related to that product category?
Top Amway interview questions
- Design a Supermarket for older people.6 answers | 8.7k views
- How would you design a business operations dashboard for Direct Selling Agents (selling personal care or nutrition products)?0 answers | 300 views
- See Amway PM Interview Questions
Top Problem Solving interview questions
- A metric for a video streaming service dropped by 80%. What do you do?50 answers | 135k views
- You launched a new signup flow to encourage new users to add more profile information. A/B test results indicate that the % of people that added more information increased by 8%. However, 7 day retention decreased by 2%. What do you do?29 answers | 28.8k views
- Drivers are dropping out of a city on Lyft. How do you figure out what's going on?23 answers | 18.8k views
- See Problem Solving PM Interview Questions
Top Problem Solving interview questions
- Your new feature boosts Amazon Search by 10%, adds 2s to load time. What do you do?19 answers | 36k views
- There is a 15% drop in the open rate of Instagram App. You are the PM. Tell us what could have happened.11 answers | 10.1k views
- There is a data point that indicates that there are more Uber drop-offs at the airport than pick-ups from the airport. Why is this the case and what would you do within the product to change that?10 answers | 22k views
- See Problem Solving PM Interview Questions