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5 customer segmentation matrix m protect high net

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Unformatted text preview: S༅ S༅ Summary: §༊ Order to Cash • Thirteen principle activities constitute the OTC cycle: o D1.1 through 1.7 represent information flows o D1.8 through 1.12 represent product flows o D1.13 represents cash flow M༄ Length and Variability of the Order- to- Cash Cycle §༊ Recent attention has centered on the variability or consistency of this process §༊ Absolute length of time is important, variability is more important §༊ A driving force is safety stock, as absolute length of the order cycle will influence demand inventory Figure 8.1 – Order Cycle Length and Variability E- Commerce Order Fulfillment Strategies M༄ Many firms use Internet technology to capture order information for fulfillment systems for picking, packing, and shipping M༄ Internet allows faster collection of cash by the seller Customer Service M༄ The Logistics/Marketing Interface §༊ Customer service is the key link between logistics and marketing within an organization §༊ Manufacturing can produce a quality product at the right cost and marketing can sell it, but if logistics does not deliver it when and where promised, the customer will not be satisfied M༄ Defining Customer Service §༊ Three perspectives • Philosophy • As a set of performance measures • As an activity Figure 8.8 – Traditional Logistics/Marketing Interface Customer Service, cont. M༄ Elements of Customer Service §༊ Time §༊ Dependability • Cycle time • Safe delivery • Correct orders §༊ Communications §༊ Convenience M༄ Performance Measures for Customer Service §༊ Stated from the customer’s perspective • Orders received on time • Orders received complete • Orders received damage free Figure 8.9 – Customer Service and ROI Figure 8.10 – Lead Time Frequency Distribution Example Figure 8.11 – SCOR Model: Process D1 Matrix Expected Cost of Stockouts M༄ Stockout occurs when desired quantities are not a...
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