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 home’s, 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 servicesDifferent customers have different needs and requirementsProducts and services become meaningful only when available and positioned from the customer’s perspectiveVolume 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 Florida’s 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 customer’s order.

Specified in terms of:Speed

Consistency

Flexibility

Malfunction Recovery

Service Reliability

Involves the combined attributes of logistics and concerns a firm’s ability to perform all order-related activities, as well as provide customers with critical information regarding logistical operations and status.