CUSTOMER ACCOMODATION

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CUSTOMER ACCOMODATION
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Who is the Customer?

• 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 homes, retail / wholesale
  businesses, receiving docks of manufacturing
  plants and warehouses

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• CUSTOMER-FOCUSED MARKETING

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Marketing Concept

• Four fundamental ideas
• Customer needs and requirements are more basic
  than products or services
• Different customers have different needs and
  requirements
• Products and services become meaningful only when
  available and positioned from the customers
  perspective
• Volume is secondary to profit

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Supply Chain Service Outputs

• Four generic service outputs necessary to
  accommodate customer requirements
• Spatial Convenience
• Lot Size
• Waiting Time
• Product Variety and Assortment

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Lifestyle Center

• Destin Commons is Northwest Floridas premier
  outdoor lifestyle center. The architecturally-uniq
  ue project gracefully spreads over 56 acres in
  Destin, Florida and is anchored by Belk,
  Worldwide Sportsmen Bass Pro Shops and Rave
  Motion Pictures, a 14-screen stadium styled
  theatre. Destin Commons also boasts a prize mix
  of 80 retail stores, 8 restaurants, Class-A
  office space and a Center Plaza which offers a
  soft-play kids playground and a 49-head pop
  fountain. Community activities and entertainment
  abound all through the year at Destin Commons .

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Spatial Convenience

• Refers to the amount of shopping time and effort
  that will be required on the part of the
  customer.
• Higher levels of spatial convenience are achieved
  in a supply chain by providing customers with
  access to its products in a larger number of
  places, thus reducing shopping effort.

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Spatial Convenience
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Spatial Convenience
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Lot Size

• Refers to the number of units to be purchased in
  each transaction.
• When customers are required to purchase in large
  quantities, they must incur costs of product
  storage and maintenance. When the supply chain
  allows them to purchase in small lot sizes, they
  can more easily match their consumption
  requirements with their purchasing.

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Waiting Time

• Refers to the amount of time the customer must
  wait between ordering receiving products the
  lower the waiting time, the higher the level of
  supply chain service. Alternative supply chains
  offer consumers and end users choices in terms of
  the amount of waiting time required.

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Product Variety and Assortment

• Different supply chains offer differing levels of
  variety and assortment to consumers and end users.

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• CUSTOMER SERVICE

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Availability

• The capacity to have inventory when desired by a
  customer.
• Factors considered
• Stockout Frequency
• Fill Rate
• Orders Shipped Complete

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Operational Performance

• Deals with the time required to deliver a
  customers order.
• Specified in terms of
• Speed
• Consistency
• Flexibility
• Malfunction Recovery

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Service Reliability

• Involves the combined attributes of logistics and
  concerns a firms ability to perform all
  order-related activities, as well as provide
  customers with critical information regarding
  logistical operations and status.