CUSTOMER

ACCOMODATION
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 homes, retail / wholesale
businesses, receiving docks of manufacturing plants and
warehouses
CUSTOMER-FOCUSED
MARKETING
Marketing Concept
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
customers 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
Lifestyle Center
Destin Commons is Northwest
Floridas premier outdoor
lifestyle center. The
architecturally-unique project
gracefully spreads over 56 acres
in Destin, Florida and is anchored
by Belk, Worldwide Sportsmen
Bass Pro Shops and Rave Motion
Pictures, a 14-screen stadium
styled theatre. Destin Commons
also boasts a prize mix of 80+
retail stores, 8 restaurants, Class-
A office space and a Center Plaza
which offers a soft-play kids
playground and a 49-head pop
fountain. Community activities
and entertainment abound all
through the year at Destin
Commons .
 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
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
supply chain allows them to purchase in
small lot sizes, they can more easily match
their consumption requirements with their
purchasing.
 Waiting Time
Refers to the amount of time the customer
must wait between ordering receiving
products: the lower the waiting time, the
higher the level of supply chain service.
Alternative supply chains offer consumers
and end users choices in terms of the
amount of waiting time required.
Product Variety and Assortment
Different supply chains offer differing
levels of variety and assortment to
consumers and end users.
CUSTOMER SERVICE
Availability
The capacity to have inventory when
desired by a customer.
Factors considered:
Stockout Frequency
Fill Rate
Orders Shipped Complete
Operational Performance
Deals with the time required to deliver a
customers order.
Specified in terms of:
Speed
Consistency
Flexibility
Malfunction Recovery
Service Reliability
Involves the combined attributes of logistics
and concerns a firms ability to perform all
order-related activities, as well as provide
customers with critical information
regarding logistical operations and status.