Download - 10-Customer Value Chain Management
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Customer value and supply chain management
• Discussion on Dell’s direct business model
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The Value Chain
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Introduction
• The internal quality assurance Phase (Mfg. Focus)
• The external customer satisfaction Phase ( MM focus)
• The customer true value phase– Customer value is the way the customer
perceives the entire company’s offerings including products services and intangibles
• The role of logistics in customer value chain management
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The dimensions of customer value
• Conformance to requirements (availability; stable viruses highway nation in demand )
• Product selection ( options-style, colors and designs service features etc.) Maruty example
-specialized offerings one type of porter e.g. Starbucks -Megastore; one stop shop offering e.g. Wall mart -Megastore specialized in one product –IKEA, Factory outlets- Internet based offerings
• Price and brand (Dell, every day low prices, Food bazaar's price challenge, Subhiksha BACHAT ADHIKAR slogan
• Value added services ( The ultimate differentiate and value creator)
• Relationship and experiences Need to get closer to the customer ,loyalty cards , data-based promotional offerings ,after service calls ,mobile telephone groups
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Strategic Pricing
• Revenue management (example of hotel room management
• Smart pricing – Customized pricing ( example of airline tickets)
– Dynamic pricing (available capacity , demand variability ,seasonality in demand pattern,length of planning horizon)
– Internet based differentiation
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Hotel Room Pricing options
• Total 400 Rooms• Demand fore casts for per night rent
– 400 rooms@ Rs.12000 (480000)– 200 rooms@ Rs.16000 (320000)– 100 rooms@ Rs 18000 (180000)– 50 rooms @ Rs. 20000 (100000)– What pricing strategy hotel should follow? What should be
their supply chain strategy to maximize their revenue
– The Hotel Managed a revenue of Rs.6,60,000 per night)
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Airline pricing model
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Customer value measures
• Service level
• Customer satisfaction
• Supply chain performance measures – Total supply chain costs – Cash -to- cycle time – Upside production flexibility – Delivery performance to request
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SCOR Valuation Metrics (Supply Chain Operations Research Model)
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Information technology and customer value
1-Customer benefits • Increased ability to connect and disconnect • Increased customer expectations
• Tailored experience
2-Business benefits
3- Business to business benefits
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Summary and conclusions
• The myth of excellence (book research)• The myth is really not valid
• To succeed a company needs to dominate in one attribute and
• Differentiate itself in another and
• Be adequate in all the rest but not below that
.supply Chain strategy affects customer value
. A properly designed supply chain strategy can enhance customer value .