3. • “A Customer is the most important person
ever in the premises. A Customer is not
dependent on us .We are dependent on
him . A Customer is not the interruption of
our work-he is the purpose of it. We are
not doing a favour by serving him-he is
doing us a favour by giving us the
opportunity to do so”

4. Hard to please
Is smarter , more value conscious
Is more demanding and less
forgiving
Is approached by competitors
with equal or better offers
All this is taken as given.
In spite of these factors,
challenge is to provide loyal
and long term customers

5.  Lead Generation
 Lead qualification
 Account conversion
The more difficult part of the task
starts only after getting the
customer-that of retaining him or
her for the longer term.This is
possible only if the customer is
satisfied with the product or
service.

6. • Pre-transaction elements: customer service factors that
arise prior to the actual transaction taking place
• Transaction elements: the elements directly related to
the physical transaction and are those that are most
commonly concerned with distribution and logistics.
• Post-transaction elements: these involve those elements
that occur after the delivery has taken place

8. • Logistic means having the right thing at the right place at
the right time.
Three objectives of logistics strategy:
• Cost reduction (variable costs)
• Capital reduction (investment, fixed costs)
• Service Improvement (may be at odds with
the above two objectives)

9. Components of
logistics management : Management actions
Outputs of
Planning Implementation Control logistics
Inputs into logistics
Natural resources Marketing
(land, facilities, Logistics management orientation
and equipments) Suppliers Raw In-process Finished Customers (competitive
materials inventory goods advantage)
Time and
Human resources
Logistics Activities place utility
•Customer Service •Plant and Efficient
Financial resources •Demand forecasting warehouse site movement to
•Distribution selection customer
communications •Procurement
Information •Inventory control •Packaging
resources •Material handling •Return goods Proprietary
•Order Processing handling asset
•Parts and service •Salvage and scrap
support disposal
•Traffic and
transportation
•Warehousing and
storage

10. Five Business Systems - Tightly Interconnected
Within The Organization
Management
}
Systems Strategic Product Process
Decisions Design Design
Decisions Decisions
Engineering
Measurement Systems
}
Decisions
Product
Decisions
Reward
Decisions Price
Decisions
Promotion
Decisions
Marketing
Systems
Place (How,
{ }
where, how
much)
Production
Inventory Capacity
Decisions Decisions
Logistics Transportation Production
Manufacturing
Scheduling
Systems Decisions
Decisions Systems
Sourcing Shop Floor
Decisions Decisions
Copyright 2000 - All Rights Reserved

11. • PRODUCT DESIGN
• PRICING
• MARKET AND DEMAND FORECAST
• CUSTOMER SERVICE POLICIES
• NO. AND LOCATION OF WAREHOUSES
• INVENTORY POLICIES
• ORDER PROCESSING

12. • Leads to customer satisfaction through superior
customer service.
• Organizational objectives of P [Productivity],Q [Quality],C
[Cost],D [Delivery],E [Employee Morale],F [Flexibility],S
[Safety],H [Health],E [Environment] are set to meet
customer expectations of Q,C,D.
• Q, C, S, H, E are parts of must be quality that a
customer expects. Logistics addresses D, F objectives
which lead to customer satisfaction through superior
customer service

13. Logistics should ensure that the supplier is able to respond to
the change in the demand very fast. Entire production
should change from traditional push system to pull system to
facilitate rapid response

14. IT helps management in producing and delivering goods
when the consumer needs them. This results into
reduction of inventory and exposes all operational
deficiencies.

15. • Logistics is expected to minimize events like delays due
to obstacles in information flow, traffic snarls, acts of
god, wrong dispatches, damage in transit, thereby
minimize and improve on OTD or On Time Delivery

16. • If the quality of product fails logistics will have to ship the
product out of customers premises and repeat the
logistics operation again. This adds to costs and
customer dissatisfaction. Hence logistics should
contribute to TQM initiative of management

17. Logistics function is expected to provide
life cycle support to the product after sale.
This includes:
a) After sales service
b) Reverse logistics or Product recall

18. The service support needed by the product once it is
sold during its life cycle

19. as a result of
 Rigid quality standards [critical in case of contaminated products which
can cause environmental hazard]
 Transit damage [leaking containers containing hazardous material]
 Product expiration dating
 Rigid laws prohibiting unscientific disposal of items associated with
product [packaging]
 Rigid laws making recycling mandatory
 Erroneous order processing by supplier
 Reverse logistics is an important component of logistics planning

20. • LOGISTIC/SC FUNCTION HAS TO INTERECT WITH
VARIOUS OTHER FUNCTIONS TO ENSURE SUPPLY
OF R/M FROM SUPPLIERS,CONVERT THESE INTO
F/G FOR BETTER DELIVERY TO CUSTOMERS.
• INBOUND LOGISTICS INTERACTS WITH
PRODUCTION,OPERTION AND
ENGINEERING.OUTBOUND LOGISTICS INTERACTS
WITH MARKETING
• INTERACTION HELPS OPTIMIZE THE CAPACITY
UTILIZATION,REDUCE WAITING TIME FOR THE
CUSTOMERS AND ENSURE TIMELY AND COMPLETE
DELIVERIES FOR OVERALL CUSTOMER
SATISFACTION.