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36 Matching questions
- Expectancy disconfirmation states if
- Discrepancies Must be Overcome to Enable Exchange of Goods and Services
- Basic Elements of Customer Service
- Value-Added Services
- Achieving Customer Success Requires Knowledge of Individual Customer Requirements
- Relationship marketing
- Four Generic Supply Chain Service Outputs Eliminate Discrepancies
- Fill Rate
- The focal point of a business strategy must be the customers that it intends to serve
- Overview of Customer Relationship Management
- Many firms establish their basic service platforms using two factors:
- Micromarketing or One-to-One Marketing recognizes
- The Model Identifies Gaps Managers Must Fill to Help Satisfy Their Customers
- Spatial convenience is
- One-to-one relationships can
- Orders Shipped Complete
- Developing a Customer Accommodation Strategy
- Operational Performance
- Customer Expectations Related to Logistical Performance
- Lot size
- The Perfect Order is an order that is:
- 3 Levels of Customer Focus
- Increasing Customer Expectations
- Availability
- Basic Customer Service Provides Customers ...
- Three Levels of Customer Accommodation
- Customer relationship management (CRM) is
- Customer Success Requires a Comprehensive Supply Chain Perspective
- Who is the Customer?
- Transactional Marketing
- Waiting time is
- Stockout
- P (zero defects)
- Service Reliability
- Basic service platform
- Product variety and assortment differs by
- a the amount of shopping time and effort will be required on the part of the customer
- b Ability to Perform All Order-related Activities & Provide Critical Information
-Service reliability involves a combination of logistics attributes beyond simply availability and operational performance.
1.)Damage free measures how many shipments arrive without damaged products
2.)Error-free invoices measures what percentage of invoices contain no errors
3.)Shipment matches order measures how many shipments contain the exact amount of product ordered
4.)Shipped to correct location measures how many shipments are made to the customer's selected location
Plus a capability and willingness to provide customers with accurate information regarding operations and order status - c -Delivered complete
-Delivered on time
-Delivered at the right location
-Delivered in perfect condition
-Delivered with complete and accurate documentation (e.g. packing list, invoiced at correct price)
This requires the total order cycle performance to be executed with zero defects - d occurs when a firm has no product available to fulfill customer demand
- e -Customer needs and requirements are more basic than products and services - match products to needs
-Different customers (segments) have different needs and requirements
-Products and services become meaningful only when available and positioned from the customer's perspective
-Profit is more important than sales volume (Is customer willing to pay for modifications?) - f -Discrepancy
in space refers to the fact that the location of production activities
and location of consumption are seldom the same
-Discrepancy in time refers to the difference in timing between production and consumption
-Discrepancy in quantity and assortment refers to the mismatch between customer demand and manufacturing supply
-Customers seek small quantities and wide assortment
-Firms specialize in large quantities of a limited assortment - g the amount of time the customer must wait between ordering and receiving products
- h a
process for improving the overall performance of a business by better
understanding and anticipating the wants and needs of customers
One CRM example - Procter & Gamble has employees who live and work in the city of its largest customer Wal*Mart
Logistics has primary responsibility for many of the processes that drive value and customer success - i Deals with the Time Required to Deliver a Customer's Order
-Speed of the performance cycle is the elapsed time from when a customer established a need to order until the product is delivered
-Consistency of the order cycle is measured by the number of times that actual cycles meet the time planned for completion
-Flexibility is a firm's ability to accommodate special situations and unusual or unexpected customer requests
-Malfunction Recovery is a firm's ability to quickly implement contingency plans when a failure occurs in the supply chain - j Operational performance level
Service reliability level
Availability level - k Performance that meets customer expectations one year may result in extreme dissatisfaction the next year
Competition in an industry will often raise the minimum standards that customer expect - l 1.)Availability
Fill rates
Stockout frequency
Orders shipped complete
2.)Operational Performance
Speed
Consistency
Flexibility
Malfunction recovery
3.)Service Reliability
Damage free
Error-free invoices
Shipment matches order
Shipped to correct location
Etc. - m Reliability
Responsiveness
Access
Communication
Credibility
Security
Courtesy
Competency
Tangibles
Knowing the customer - n Level 1: Customer service
Assess industry and competitor practices
Achieve internal standards for performance cycles
Level 2: Customer satisfaction
Assess customer perceptions of satisfaction
Manage performance cycle levels to keep customers satisfied
Level 3:Customer success
Assess customer requirements
Extend supply chain to include our customer's customer
Provide value-added services for select customers
Manage performance cycles and levels to address needs of each customer segment in the extended supply chain - o From perspective of the total supply chain
-End user of product in consumer market
-Company is customer in business market
From perspective of specific firm within a supply chain
-Intermediate customer organizations exist between the firm and end users
From perspective of a logistics manager
-Any delivery location. For example, consumer home's, retail / wholesale businesses, receiving docks of manufacturing plants and warehouses - p measures the magnitude or impact of stockouts over time
- q A traditional strategy with a focus on creating successful individual transactions between the company and its customers
- r Spatial convenience
Lot size
Waiting time
Product variety and assortment - s Customer-focused marketing
Customer service
Customer satisfaction
Customer success
Developing customer relationship management strategy - t Us -> Our customer -> Our customer's customer -> Us
- u 1.) Knowledge
2.) Standards
3.) Performance
4.) Communications
5.) Perception
6.) Satisfactions/quality - v Competitor or industry acceptable practice
-Minimum and average service performance levels have emerged in most industries
The firm's overall marketing strategy
-High service levels needed to compete on basis of logistics competency
-Low service levels are more common when competing on the basis of price
Zero-defect approach is not taken across the board for all customers
Establish internal performance standards for each service component to reflect industry practice, cost, and resource requirements - w The Capacity to have Inventory When Desired by a Customer
- x -supply chain
Supermarkets may have over 35,000 items on the shelves
Warehouse stores generally stock 8,000 to 10,000 items with only one brand and size of an item
Convenience stores may stock only a few hundred items - y Not all customers have the same requirements
Know your customers' processes
Determine how your capabilities can enhance your customers' performance
Extend the supply chain boundaries to include next-destination customer requirements
Introduce new performance metrics
Develop value-added services for select customers - z requires shipping everything that a customer orders to count as a complete shipment
- aa A new strategy with a focus on the development of long-term relations with key supply chain participants in an effort to develop and retain long-term preference and loyalty
- ab = .97 x .97 x .97 x .97 = .885
- ac that each individual customer may indeed have unique requirements
For example, Wal*Mart and Target are both mass merchandisers - However, their requirements to interact logistically with suppliers differs significantly. - ad Significantly reduce transaction costs.
Better accommodate customer requirements.
Move individual customer transactions into a matter of routine. - ae a customer's expectations of a supplier's performance are met or exceeded, the customer will be satisfied
If Perceived Performance > = Expectations, then Satisfaction
If Perceived Performance < Expectations, then Dissatisfaction - af is the number of units to be purchased in each transaction
- ag refer to unique or specific activities that firms can jointly develop to enhance their efficiency, effectiveness and relevancy
Transportation carriers, warehouse firms and other specialists may become intimately involved to make value-adding activities a reality
For example, a retail customer may desire a unique palletization alternative to support its cross-dock activities for its individual stores
Each store requires different quantities of specific product to maintain in-stock performance with minimum inventory - ah Basic principle of supply chain logistics is that customers should be segmented based on their service needs
Supply chains must be adapted to serve those segments
Companies need:
1.)A framework for choosing the appropriate customer specific strategies
2.)Programs for customer relationship management - ai Customer service
Customer satisfaction
Customer success
Supply chains provide a mix of services, both generic and custom, in order to accommodate a range of customer requirements - aj With the right amount
Of the right product
At the right time
And the right place
In the right condition
At the right price
With the right information