Customer Value & Service

Customer Value & Service - Customer Value Discussion...

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Customer Value
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Discussion Questions What is customer value? How is customer value measured? How does supply chain contribute to customer value? What is customer service? What is the connection between customer service and customer value?
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How do you define value? Perception of the degree to which a firm is able to recognize and satisfy the needs of its customers. Customer value is a trade-off between what customers gain and what they give up. Value equation: Value = Performance/Cost Performance = Quality + Timeliness + Flexibility Cost = both Quantitative & Qualitative
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What are the Elements of Value? Quality - how well the designed functionality and performance of the product/service meets the customer’s specific needs and expectations. Timeliness - degree to which a product is delivered where and when the customers needs it. Flexibility - ability to respond to demand and supply changes with little cost or time penalty. Cost - what the customer must pay for a given level of performance/ service.
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Procurement Production Delivery Lead Time Lead Time Lead Time Design Lead Time Customer receives product Customer Experienced Order to Delivery Lead Time MTS items stocked locally (Groceries) MTS items stocked centrally (Amazon.com) ATO items (Dell Computers, Burger King) MTO items from stocked matls (Custom jewelry) MTO items from purchased matls., (House, custom furniture) ETO items (Space shuttle, custom home) Fab. Assy. Firm Experienced Lead Time Order Lead Time Total Fulfillment Lead Time Lead Time Concept
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1. Conformance to requirements. 2. Product selection. 3. Price and brand. 4. Value-added services. 5. Relationships and experiences. What are the dimensions of customer value?
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1. Conformance to Requirements Market mediation Ability to offer what the customer wants and needs. Closing the communication loop Supply chain is organized so it can track material and product in real time but also close the information loop. Sticking to a rhythm across the supply chain Company is willing to spend money on anything that will make its supply chain fast and responsive. Leveraging capital assets to increase supply chain flexibility Company uses investments in production and distribution facilities to make the supply chain more responsive.
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2. Product Selection Proliferation of product options.
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This note was uploaded on 02/25/2012 for the course MGSC 1201 taught by Professor M during the Spring '12 term at Northeastern.

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Customer Value & Service - Customer Value Discussion...

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