Successfully reported this slideshow.
Presented by: HC Lalpanmawia                               1
   The way of measure of product and service       Internal quality assurance  external customer        satisfaction  ...
   Customer value  the way the customer    perceives the entire company’s offerings    (products, services…)   Customer...
   The ability to offer what the customer wants and    needs is a basic requirement to which SCM    contributes by creati...
   The contribution of product proliferation (rapid    reproduction/increase in no)to customer value is difficult to anal...
   Price of products and the level of service are    essential parts of customer value       The price may not be the on...
   Value-added offering can differentiate some    companies from their competitors and provide    them with more profitab...
   An increased connection between the firm and its    customers makes it more difficult for customers to    switch to an...
   Revenue management       “selling the right inventory unit to the right type of        customer, at th-e right time, ...
   Many companies use price as a tool to influence customer demand    and apply the principles of revenue management tech...
   The objective in this section is to introduce    various measures of customer value as well as    supply chain perform...
   Service level is the typical measure used to    quantify a company’s market conformance.   Service level is usually r...
   Customer satisfaction surveys are used to    measure sales department and personnel    performance as well as to provi...
   Information technology has produced many    valuable benefits for customers and businesses.   Customer benefits     ...
   Creating customer value is the driving force    behind a company’s goals, and supply chain    management is one of the...
SUPPLY CHAINMANAGEMENT    SCM               16
Flow of products and services from:       Raw materials manufacturers       Intermediate products manufacturers       E...
Supplier             Material Flow                       Material Flow             CustomerManagement                     ...
Plan      Source                  Make                      Deliver                    Buy       Suppliers                ...
   A set of approaches used to efficiently integrate       Suppliers       Manufacturers       Warehouses       Distr...
   Supply chain management is a set of    approaches utilized to efficiently integrate    suppliers, manufacturers, wareh...
   Supply Chain GoalsEfficient supply chain management mustresult in tangible business improvements. Itis characterized b...
   Uncertainty is inherent to every supply chain       Travel times       Breakdowns of machines and vehicles       We...
   Dealing with uncertain environments –    matching supply and demand   Shorter product life cycles of high-technology ...
   Forecasts are never right       Very unlikely that actual demand will exactly equal forecast demand   The longer the...
ISSUE                                      CONSIDERATIONSNetwork Planning            • Warehouse locations and capacities ...
STRATEGY   WHEN TO CHOOSE                   BENEFITS  Make to Stock         standardized products,     Low manufacturing c...
   View the supply chain as a strategic asset and a    differentiator       Wal-Mart’s partnership with Proctor & Gamble...
Upcoming SlideShare
Loading in …5
×

Customer value and supply chain management

22,089 views

Published on

Published in: Business, Technology

Customer value and supply chain management

  1. 1. Presented by: HC Lalpanmawia 1
  2. 2.  The way of measure of product and service  Internal quality assurance  external customer satisfaction  customer value SCM is naturally an important component in fulfilling customer needs and providing value. SCM can also impact the important customer value of price by significantly reducing costs. Customer value drives changes and improvements in the supply chain. Customer value is also important for determining the type of supply chain. 2/
  3. 3.  Customer value  the way the customer perceives the entire company’s offerings (products, services…) Customer perception can be broken into several dimensions:  Conformance(mil) to requirements  Product selection  Price and brand  Value-added services  Relationships and experiences 3/
  4. 4.  The ability to offer what the customer wants and needs is a basic requirement to which SCM contributes by creating availability and selection  market mediation(buaina kara palai) function  the differences between supply and demand will lead to the costs associated with the market mediation  Supply > demand  inventory cost  Demand > supply  lost sales and possibly market share Customer access  the ability to easily find and purchase a product In all, the company provides  Products, services for customers  The way for customers to know its products, services 4/
  5. 5.  The contribution of product proliferation (rapid reproduction/increase in no)to customer value is difficult to analyze and understand.  The proliferation of products and difficulty in predicting demand for a specific model force retailers and distributors to hold large inventories.  Sometimes there is no need to provide too many selections for one item Three successful business trends  Specializing in offering one type of product : Starbucks, Subway  Megastores that allow one-stop shopping for a large variety of products :Wal-Mart  Megastores that specialize in one product area : Home Depot, Office Max, Sportmart Several ways to control the inventory problem of a large variety of configuration or products  Build-to-order model : Dell  Larger inventories at major distribution centers: vehicles  A fixed set of options that cover most customer requirements 5/
  6. 6.  Price of products and the level of service are essential parts of customer value  The price may not be the only factor a customer considers, there may be a narrow price range that is acceptable for certain products. Brand – an important factor affecting the price  The internet and its impact on consumer behavior have increased the importance of brand names, because a brand name is guarantee of quality in the buyer’s mind.  Mecedes cars, Rolex watches, Coach purses… 6/
  7. 7.  Value-added offering can differentiate some companies from their competitors and provide them with more profitable pricing structures  Especially technical products : after sales services Other reasons why many companies are adding more services around their products:  The commoditization of products  The need to get closer to the customer  The increase in information technology capabilities Value-added services  Support, maintenance  Information access 7/
  8. 8.  An increased connection between the firm and its customers makes it more difficult for customers to switch to another provider The learning relationship  Companies build specific user profiles and utilize this information to enhance sales as well as retain customers Beyond relationship, some companies are also designing, promoting, and selling unique experiences to their customers.  An experience occurs when a company intentionally uses services as the stage, and goods as props, to engage individual customers in a way that creates memorable events  Disney’s theme parks 8/
  9. 9.  Revenue management  “selling the right inventory unit to the right type of customer, at th-e right time, and for the right price” Smart pricing  Use price as a tool to influence customer demand 9/
  10. 10.  Many companies use price as a tool to influence customer demand and apply the principles of revenue management techniques to their respective industries. Smart pricing Customized pricing  The objective is to distinguish between customers according to their price sensitivity Dynamic pricing  Dynamic pricing, or changing price over time without necessarily distinguish between different types of customers has traditionally been used only for sales or promotions  Example : fashion clothing retailers offer discounts later in the season to reduce inventory, and this discount is the same for all customers at a given time. 10/
  11. 11.  The objective in this section is to introduce various measures of customer value as well as supply chain performance measures Service level Customer satisfaction Supply chain performance measures 11/
  12. 12.  Service level is the typical measure used to quantify a company’s market conformance. Service level is usually related to the ability to satisfy a customer’s delivery date. There is a direct relationship between the ability to achieve a certain level of service and supply chain cost and performance. 12/
  13. 13.  Customer satisfaction surveys are used to measure sales department and personnel performance as well as to provide feedback for necessary improvements in products and services. Customer satisfaction Customer loyalty Customer defections 13/
  14. 14.  Information technology has produced many valuable benefits for customers and businesses. Customer benefits  Exchange of information between customers and business Business benefits  The use of information by companies to learn more about their customers Business-to-business benefits  Enhance business-to-business capacities 14/
  15. 15.  Creating customer value is the driving force behind a company’s goals, and supply chain management is one of the means of achieving customer value. Companies need to select their customer value goals since the supply chain, market segmentation, and skill sets required to succeed depends on this choice. There is no real customer value without a close relationship with customers. 15/
  16. 16. SUPPLY CHAINMANAGEMENT SCM 16
  17. 17. Flow of products and services from:  Raw materials manufacturers  Intermediate products manufacturers  End product manufacturers  Wholesalers and distributors and  Retailers• Connected by transportation and storage activities• Integrated through information, planning, and integration activities• Cost and service levels 17/
  18. 18. Supplier Material Flow Material Flow CustomerManagement Management Information FlowSchedule / Stock Conversion DeliveryResources Deployment Leads to Business Process Integration
  19. 19. Plan Source Make Deliver Buy Suppliers Manufacturers Warehouses & Customers Distribution Centers Transportation Transportation Material Costs Costs Costs Transportation Manufacturing Costs Inventory Costs Costs 19
  20. 20.  A set of approaches used to efficiently integrate  Suppliers  Manufacturers  Warehouses  Distribution centers So that the product is produced and distributed  In the right quantities  To the right locations  And at the right time System-wide costs are minimized and Service level requirements are satisfied 20/
  21. 21.  Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements. 21/
  22. 22.  Supply Chain GoalsEfficient supply chain management mustresult in tangible business improvements. Itis characterized by a sharp focus on Revenue growth Better asset utilization Cost reduction.
  23. 23.  Uncertainty is inherent to every supply chain  Travel times  Breakdowns of machines and vehicles  Weather, natural catastrophe, war  Local politics, labor conditions, border issues The complexity of the problem to globally optimize a supply chain is significant  Minimize internal costs  Minimize uncertainty  Deal with remaining uncertainty 23/
  24. 24.  Dealing with uncertain environments – matching supply and demand Shorter product life cycles of high-technology products  Less opportunity to accumulate historical data on customer demand  Wide choice of competing products makes it difficult to predict demand The growth of technologies such as the Internet enable greater collaboration between supply chain trading partners  If you don’t do it, your competitor will  Major buyers such as Wal-Mart demand a level of “supply chain maturity” of its suppliers Availability of SCM technologies on the market  Firms have access to multiple products (e.g., SAP, Baan, Oracle) with which to integrate internal processes 24/
  25. 25.  Forecasts are never right  Very unlikely that actual demand will exactly equal forecast demand The longer the forecast horizon, the worse the forecast  A forecast for a year from now will never be as accurate as a forecast for 3 months from now Aggregate forecasts are more accurate  A demand forecast for all CV therapeutics will be more accurate than a forecast for a specific CV-related product Nevertheless, forecasts (or plans, if you prefer) are important management tools when some methods are applied to reduce uncertainty 25/
  26. 26. ISSUE CONSIDERATIONSNetwork Planning • Warehouse locations and capacities • Plant locations and production levels • Transportation flows between facilities to minimize cost and timeInventory Control • How should inventory be managed? • Why does inventory fluctuate and what strategies minimize this?Supply Contracts • Impact of volume discount and revenue sharing • Pricing strategies to reduce order-shipment variabilityDistribution Strategies • Selection of distribution strategies (e.g., direct ship vs. cross-docking) • How many cross-dock points are needed? • Cost/Benefits of different strategiesIntegration and Strategic • How can integration with partners be achieved?Partnering • What level of integration is best? • What information and processes can be shared? • What partnerships should be implemented and in which situations?Outsourcing & Procurement • What are our core supply chain capabilities and which are not?Strategies • Does our product design mandate different outsourcing approaches? • Risk managementProduct Design • How are inventory holding and transportation costs affected by product design? • How does product design enable mass customization? 26 Source: Simchi-Levi
  27. 27. STRATEGY WHEN TO CHOOSE BENEFITS Make to Stock standardized products, Low manufacturing costs; relatively predictable meet customer demands demand quickly Make to Order customized products, Customization; reduced many variations inventory; improved service levels Configure to Order many variations on Low inventory levels; wide finished product; range of product infrequent demand offerings; simplified planning Engineer to Order complex products, unique Enables response to customer specifications specific customer requirementsSource: Simchi-Levi 27
  28. 28.  View the supply chain as a strategic asset and a differentiator  Wal-Mart’s partnership with Proctor & Gamble to automatically replenish inventory  Dell’s innovative direct-to-consumer sales and build-to- order manufacturing Create unique supply chain configurations that align with your company’s strategic objectives  Operations strategy  Outsourcing strategy  Channel strategy  Customer service strategy Supply chain configuration components  Asset network Reduce uncertainty  Forecasting  Collaboration  Integration 28

×