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Lecture Logistics theory - Lecture 7: Customer accomodation

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At the end of this lecture, students should be able to define who customer is, understand the four genetic service outputs theories developed by bucklin, understand the role of a customer service, understand the fundamental attributes of customer service, understand element of customer service. | CUSTOMER ACCOMODATION Learning outcomes At the end of this lecture, students should be able to Define who customer is Understand the four genetic service outputs theories developed by Bucklin Understand the role of a customer service Understand the fundamental attributes of customer service Understand element of customer service 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 home’s, retail / wholesale businesses, receiving docks of manufacturing plants and warehouses CUSTOMER-FOCUSED MARKETING Marketing Concept This concept is build on four fundamental ideas: Customer needs and requirements are more basic than products or services Different customers have different needs and . | CUSTOMER ACCOMODATION Learning outcomes At the end of this lecture, students should be able to Define who customer is Understand the four genetic service outputs theories developed by Bucklin Understand the role of a customer service Understand the fundamental attributes of customer service Understand element of customer service 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 home’s, retail / wholesale businesses, receiving docks of manufacturing plants and warehouses CUSTOMER-FOCUSED MARKETING Marketing Concept This concept is build on 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 customer’s perspective Volume is secondary to profit Supply Chain Service Outputs Four generic service outputs necessary to accommodate customer requirements: Spatial Convenience Lot Size Waiting Time Product Variety and Assortment These four genetic service outputs are theories developed by Bucklin, 1966, to eliminate discrepancies in space, time and quantity and assortments. 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. Spatial Convenience 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 .

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