Customer Focus in SCM

Customer focused Marketing

Transactional Vs Relationship Marketing
Supply chain service outputs
Discrepancy in space
Discrepancy in time
Discrepancy in quantity and assortment
Bucklin developed four generic service output necessary to
accommodate customer requirements
Spatial Convenience
Lot Size
Waiting Time
Product variety and assortment

p. 1
Supply Chain Insights, LLC 2012
 Fundamental attributes of basic customer
service
Availability
Stockout frequency
Fill rate
Orders shipped complete

p. 2
Supply Chain Insights, LLC 2012
 Operational performance
It deals with the time required to deliver a
customers orders, so it is specified in terms
of :
Speed
Consistency
Flexibility
Malfunction recovery

p. 3
Supply Chain Insights, LLC 2012
 Customer satisfaction
Customer expectations
Satisfaction and quality model

p. 4
Supply Chain Insights, LLC 2012
Consumer value: is the perception about the difference
between the perceived benefits from a product or service
and the costs of acquisition that drives his/her purchase
decision in favour of a particular offerings.
Consumer value= perceived benefits- cost of acquisitions;
wherein,
Perceived benefits= functional benefits+ psychological
benefits+ experience (during and after purchase)
Cost of acquisition= price paid+ time and energy spent in
search of right information and product+ convenience (real-
time delivery, ease in use or handling)

p. 5
Supply Chain Insights, LLC 2012
Voice of the Supply Chain
Topline Research Results
March-April 2012

Supply
Chain
Insights
 Agenda

Overview
Demographics
What Defines Supply Chain Excellence?
Current State of Supply Chains
Future State of Supply Chains
Wrap-up

p. 7
Supply Chain Insights, LLC 2012
Supply Chain Tipping Points

p. 8
Supply Chain Insights, LLC 2012
Supply Chain Tipping Points

p. 9
Supply Chain Insights, LLC 2012
 A Supply Chain
is a Complex System
with Complex Processes
with Increasing Complexity

p. 10
Supply Chain Insights, LLC 2012
The Effective Frontier

p. 11
Supply Chain Insights, LLC 2012
 Agenda

Overview
Demographics
What Defines Supply Chain Excellence?
Current State of Supply Chains
Future State of Supply Chains
Wrap-up

p. 12
Supply Chain Insights, LLC 2012
Study Overview

p. 13
Supply Chain Insights, LLC 2012
 Who is the
Voice of the Supply Chain?

p. 14
Supply Chain Insights, LLC 2012
61 Respondents from 44 Companies

p. 15
Supply Chain Insights, LLC 2012
Supply Chain Organization

p. 16
Supply Chain Insights, LLC 2012
Global Operations

p. 17
Supply Chain Insights, LLC 2012
 Agenda

Overview
Demographics
What Defines Supply Chain Excellence?
Current State of Supply Chains
Future State of Supply Chains
Wrap-up

p. 18
Supply Chain Insights, LLC 2012
Evolution of Supply Chain Process
Excellence

p. 19
Supply Chain Insights, LLC 2012
Supply Chain Excellence Definition

p. 20
Supply Chain Insights, LLC 2012
Examples of Supply Chain Excellence:
Open-Ended

p. 21
Supply Chain Insights, LLC 2012
 Agenda

Overview
Demographics
What Defines Supply Chain Excellence?
Current State of Supply Chains
Future State of Supply Chains
Wrap-up

p. 22
Supply Chain Insights, LLC 2012
Supply Chain Pain Points:
All vs. Largest

Other Pain Points

p. 23
Supply Chain Insights, LLC 2012
Supply Chain Pain Points:
Others Volunteered

p. 24
Supply Chain Insights, LLC 2012
IT Systems:
Quantity

p. 25
Supply Chain Insights, LLC 2012
 IT Systems:
Importance & Satisfaction

p. 26
Supply Chain Insights, LLC 2012
IT Systems Satisfaction

p. 27
Supply Chain Insights, LLC 2012
Center of Excellence

p. 28
Supply Chain Insights, LLC 2012
Center of Excellence
Importance vs. Performance

p. 29
Supply Chain Insights, LLC 2012
 Agenda

Overview
Demographics
What Defines Supply Chain Excellence?
Current State of Supply Chains
Future State of Supply Chains
Wrap-up

p. 30
Supply Chain Insights, LLC 2012
IT Trends Excited About (Top 3)

p. 31
Supply Chain Insights, LLC 2012
Supply Chain Focal Points
for Next 2 Years

Other Focal Points

p. 32
Supply Chain Insights, LLC 2012
Supply Chain Focal Points for Next 2 Years:
Others Volunteered

p. 33
Supply Chain Insights, LLC 2012
Supply Chain 2020 Tipping Points

p. 34
Supply Chain Insights, LLC 2012
 Agenda

Overview
Demographics
What Defines Supply Chain Excellence?
Current State of Supply Chains
Future State of Supply Chains
Wrap-up

p. 35
Supply Chain Insights, LLC 2012
 Summary

The most effective supply chains are

designed and created. Today, supply chain
fundamentals are more important. Talent
development essential.

In 2012, we celebrate 30 years of supply

chain management. There is still much to
be done.

p. 36
Supply Chain Insights, LLC 2012
Thanks to all our Respondents!
 Who is Lora?

Founder of Supply Chain Insights

Partner at Altimeter Group (leader in open
research)
7 years of Management Experience leading
Analyst Teams at Gartner and AMR Research
8 years Experience in Marketing and Selling
Supply Chain Software at Descartes Systems
Group and Manugistics (now JDA)
15 Years Leading teams in Manufacturing and
Distribution operations for Clorox, Kraft/General
Foods, Nestle/Dreyers Grand Ice Cream and
Procter & Gamble.

p. 38
Supply Chain Insights, LLC 2012
Where do you find Lora?

Contact Information: loracecere@gmail.com

Blog: www.supplychainshaman.com
(3500 pageviews/month)
Twitter: lcecere 2900 followers. Rated as the
top rated supply chain social network user.
Linkedin: linkedin.com/pub/lora-
cecere/0/196/573 (2300 in the network)

p. 39
Supply Chain Insights, LLC 2012