Logistics Chapter 2 PDF

CHAPTER 2 PUTTING THE END- CUSTOMER FIRST AP DR. WAN NURUL KARIMAH WAN AHMAD BPB44903 LOGISTICS MANAGEMENT Learning objectives By the end of this chapter you should be able to understand: 1. How supply chains should compete by aligning supply chain strategy with marketing strategy. 2. The impor...

CHAPTER 2 PUTTING THE END- CUSTOMER FIRST AP DR. WAN NURUL KARIMAH WAN AHMAD BPB44903 LOGISTICS MANAGEMENT Learning objectives By the end of this chapter you should be able to understand: 1. How supply chains should compete by aligning supply chain strategy with marketing strategy. 2. The importance of quality service across logistics operations. 3. How to use logistics strategy drivers – demand, competitive and product – to help redefine segments to achieve alignment between marketing and supply chain management. 2 1. The marketing perspective 3  “ What are the marketing implications for supply chain strategy? 4  Marketing Supply chain management Demand creation Demand fulfillment 5 Rising customer expectations Better ability to Exposure to discern between more lifestyle alternative products issues in the media Better level of general education 6  The information revolution Business to consumer Business to business (B2C) (B2B) Online retailing – internet Web portals, online as another channel to marketplaces & other market products  collaborative online multichannel marketing – application: challenges to logistics: 1. Exchange info 1. Control inventories 2. Buying & selling 2. Provide high availability 3. Organize delivery 3. Stock visibility 4. payment 7 2. Segmentation 8  “ What is segmentation? What are its implications to logistics strategy? 9  Technical Geographic The use that Urban vs. Rural, type customers to make of of house, region a product Demographic 2 3 Age, sex, education Behavioral etc. Spending pattern, 1 4 frequency of purchase etc. Market segmentation 10  Economically viable Capable of producing Accessible the contribution that Geographically or in justifies the effort and terms of media cost of marketing communication 2 3 Measurable Actionable Variables that can be Can be attracted identified and measured easily 1 4 and served effectively Important characteristics of segments 11 3. Quality of Service 12  Gaps in service quality Supplier Customer GAP 1 Service Expected specification services GAP 2 GAP 3 GAP 4 Perceived Service delivery services 1. Customer satisfaction vs. customer loyalty? 2. How to ensure customers are loyal to us? How long can we keep them? 13 4. Segmented supply chain strategy 14  “ How can we develop multiple supply chain strategy that simultaneously improve efficiencies and service level? Discuss using a company as an example. 15  5. Summary 16 Summary 1. Marketing strategies should be extended continuously to strengthen customer loyalty. 2. Phase of logistics development are needed, each phase placing increasing demand on the development of logistics capabilities. 17 Thanks! Any questions? 18