scm_ch02 - Supply Chain Management: From Vision to...

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Unformatted text preview: Supply Chain Management: From Vision to Implementation Chapter 2: Customer Fulfillment Strategies 2 Chapter 2: Learning Objectives 1. Discuss how information has empowered customers, raising the competitive bar for todays companies. 1. Explain how customers define value and what a company must do to deliver value. Describe the competitive contributions of cost, quality, flexibility, delivery, and innovation capabilities. 3 Chapter 2: Learning Objectives 1. Explain the nature of customer service and satisfaction and how they differ from customer success. 1. Explain why the end customer should be the focal point for the entire supply chain. 4 Chapter 2: Learning Objectives 1. Segment customers based on strategic importance. Describe the relationships, systems, and processes needed to deliver desired levels of service to different customers. 1. Discuss the role of operational excellence in assuring profitable customer relationships. 5 If we arent customer-driven, our cars wont be, either. Donald E. Petersen, Ford 6 Information-Empowered Customer Customers are empowered with a broad range of product and pricing information Channel power is shifting down the supply chain toward the end consumer Combined these phenomena have created customers that use market leverage to demand higher levels of service at lower cost: High-Service Sponge Customers Toyota, Intel, Wal-Mart, etc. 7 Creating Value Companies seek to develop a distinctive advantage and differentiate themselves in the mind of consumer. Customers seek value in terms of: Quality Cost Flexibility Delivery Innovation 8 Competing on Quality Quality includes both design and manufacturing elements. The product must be designed to live up to or exceed customer expectations. Manufacturing must then conform to the design specifications during production. Quality must be designed and built into the companys products and processes. 9 Eight Dimensions of Quality 1. Performance - the primary operating characteristics of the product. 2. Features - the bells and whistles or extras that distinguish a product from competitors offerings. 3. Reliability - the notion that a product can be counted on not to fail. 4. Conformance - measures how well a product matches established specifications. 5. Durability - refers to the products mean time between failures and its overall life expectancy. 6. Serviceability - the speed of repair when quality problems arise. 7. Aesthetics - perception of fit and finish or artistic value. 8. Perceived quality - overall perceptions of a product or brands quality reputation 10 Quality Management Management controls over 80% of quality problems....
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This note was uploaded on 01/13/2011 for the course IT 230 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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scm_ch02 - Supply Chain Management: From Vision to...

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