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Demand Management & Customer Service
Hany Sewilam Abdel Hamid | 2017
Inbound vs. Outbound Logistics Systems
• Inbound Logistics (_____________________)
– The set of processes that precede and...
The Marketing Concept
• The goal of businesses is to _____________ to
satisfy customers
– ______________________
– _______...
Customer Service Defined
“Customer service is a process for providing significant
value-added benefits to the supply chain...
Customer Service in Marketing
Product
Price Promotion
The Importance of Customer Service in
Marketing Mix
• An example – eBay shoppers
Customer Service
Trends and Observations
• Expectations and Perceptions of Customer Service
May Differ Between Suppliers a...
Logistics Customer Service
• ________________
– in-stock rate and percent orders, units, and lines filled out
completely, ...
Customer Service Performance
Customer
Service
___________
Elements
__________
Elements
_____________
Elements
Inventory av...
Order Cycle Time Analysis: an Example
© 2017, Customer Services Map
Order Cycle Length and Variability
Determining the Optimum Customer
Service Policy
Customer Service Level
Revenues
and
Costs ($)
100%
Inventory vs. Customer Service
Inventory
Levels
(Cost)
Level of Customer Service
50% 100%0%
Issues in Customer Service
• _______________________________.
• __________________________________.
– Consult with custome...
Customer Service Check Lists
Demand Management
• Defined as “focused efforts to __________________
_________________, with the intention of using this
...
Demand Management Objectives
• _________________________________________
– e.g., customer requirements and solutions, mark...
Demand Management Objectives
• Collaboration – plan/implement/control
– ___________________________
– ____________________...
Demand Management Objectives
• _______________________________________
_______________________________________
• Developin...
How Demand Management Supports
Business Strategy
Issues in Demand Management
• Departmental/organizational silo that results in
little or no coordinated efforts.
• Too muc...
Forecasting: A Starting Point of Demand
Management
• A major component of demand management is
forecasting the amount of p...
Integration of Forecasting and Production
© 2017, Customer Services Map
Supply-Demand Misalignment in Traditional
Forecasting
© 2017, Customer Services Map
Collaborative Planning, Forecasting, and
Replenishment (CPFR)
• CPFR is recognized as a breakthrough business model for
pl...
Collaborative Planning, Forecasting, and
Replenishment (CPFR)
• Collaborative planning
improves the quality of
the demand ...
Figure 3-3
CPFR Business Model
DM in Order Fulfillment Process
• ______________________ link between buyers and sellers
• _______________________________...
Order Fulfillment
-- Different Stages of Order Fulfillment --
© 2017, Customer Services Map
Order Placement/Receiving Automation
© 2017, Customer Services Map
Electronic Data Interchange (EDI)
• EDI is “the _________________________,
__________________ exchange of business
data in...
EDI vs. Traditional Methods
Purchasing
Buyer’s
Computer
Post Office
Order
Entry
Seller’s
Computer
Purchasing
Buyer’s
Purch...
Why Use EDI?
• __________________________________________
– 70% of one computer’s input is another computer’s output
– 25%...
Effects of EDI on Supply Chain
Supplier Mfg D/C Retail
End
User
End
User
Mfg
Supplier
D/C
Retail
Five Alternative Fulfillment
Strategies for E-Commerce
1. Distributed delivery centers
2. Partner fulfillment operations
3...
Chapter Summary & Review Questions
• Inbound logistics vs. Outbound logistics – how is the focus
of each process different...
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Demand management and customer service

Demand management and customer service, This presentation is talking about the customer services management in the logistic industry from marketing point of view.

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Demand management and customer service

  1. 1. Demand Management & Customer Service Hany Sewilam Abdel Hamid | 2017
  2. 2. Inbound vs. Outbound Logistics Systems • Inbound Logistics (_____________________) – The set of processes that precede and ________ value- adding activities such as manufacturing, assembly, and so on. • Outbound Logistics (_____________________) – Early attention was given after WWII. – The emphasis is on the logistics process toward __________ to increase levels of _________________. – It is very similar to inbound logistics, – It is different from IL because it is often ____ complex than IL and, thus, requires greater managerial attention.
  3. 3. The Marketing Concept • The goal of businesses is to _____________ to satisfy customers – ______________________ – ______________________ – ______________________ Integrated Logistics • A part of the marketing concept, which is an umbrella philosophy – _______________________________________________ – _______________________________________________ Business Philosophy
  4. 4. Customer Service Defined “Customer service is a process for providing significant value-added benefits to the supply chain in a cost- effective way.” (Council of Logistics Management 1988) • A firm’s capability to be ________ and ________ in ________ changing __________________________ _____________ (Christopher 1994) • A firm’s ability to provide core services and ___________________ that promote, differentiate, and facilitate the basic “core” product/service offering of the firm (La Londe and Zinszer 1976; La Londe, Cooper, and Noordewier 1988)
  5. 5. Customer Service in Marketing Product Price Promotion
  6. 6. The Importance of Customer Service in Marketing Mix • An example – eBay shoppers
  7. 7. Customer Service Trends and Observations • Expectations and Perceptions of Customer Service May Differ Between Suppliers and Customers • Q: Customer Service More Critical When: – A market is ____________ a. competitive, b. monopoly – Products are ______ substitutable a. highly b. not – Timeliness is strategically _______ a. significant, b. not important.
  8. 8. Logistics Customer Service • ________________ – in-stock rate and percent orders, units, and lines filled out completely, etc. • ________________ – consistent delivery, lead time, average delivery time, order cycle time reliability, and minimum order cycle time, etc. • ________________ – minimum damage in transit and order-filling accuracy, etc. • _________________________ – inventory availability information, advance information on cancellations/delays, projected delivery date, etc. • Low cost distribution – cross-functional cost-tradeoffs are explicitly considered
  9. 9. Customer Service Performance Customer Service ___________ Elements __________ Elements _____________ Elements Inventory availability Target delivery dates Written statements of policy Management Services Order status Order tracing Backorder status Shipment shortages Shipment delays Product substitutions Routing charge Expediting
  10. 10. Order Cycle Time Analysis: an Example © 2017, Customer Services Map
  11. 11. Order Cycle Length and Variability
  12. 12. Determining the Optimum Customer Service Policy Customer Service Level Revenues and Costs ($) 100%
  13. 13. Inventory vs. Customer Service Inventory Levels (Cost) Level of Customer Service 50% 100%0%
  14. 14. Issues in Customer Service • _______________________________. • __________________________________. – Consult with customers on policies and standards. • __________________________________. • Measure, monitor, and control customer service standards. • All customer accounts are not the same. • __________ and added value can “lock up” customers.
  15. 15. Customer Service Check Lists
  16. 16. Demand Management • Defined as “focused efforts to __________________ _________________, with the intention of using this information to shape operating decisions.”(Blackwell and Blackwell 1999) • Recent _____________________ makes difficult for manufacturer to determine what, where, when, and how many of the sale will happen. • Complicated ____________ between manufacturing and consumption requires demand management. • Demand management will likely result in benefits flowing through the supply chain.
  17. 17. Demand Management Objectives • _________________________________________ – e.g., customer requirements and solutions, market trends, etc. • _________________________________________ – Channel functions/responsibilities are divided based upon expertise levels – Maximize effectiveness and efficiency. • Sharing with other supply chain members market information for:
  18. 18. Demand Management Objectives • Collaboration – plan/implement/control – ___________________________ – ___________________________ – Developing and executing the best logistics and distribution methods to deliver products and services – ____________________________ • Bottom line: – Better match of demand to product availability. • ______________________________ – ___________________________ is the key
  19. 19. Demand Management Objectives • _______________________________________ _______________________________________ • Developing and executing the best logistics and distribution methods to deliver products and services to consumers in the desired format. • Primary emphasis should be on using demand information to create likely scenarios of the future as they relate to product supply alternatives. • Resulting business successes will be a outcome of the better match of demand to product availability.
  20. 20. How Demand Management Supports Business Strategy
  21. 21. Issues in Demand Management • Departmental/organizational silo that results in little or no coordinated efforts. • Too much emphasis on demand forecasts with little attention to collaborative efforts to derive strategic and operational plans from the forecasts.
  22. 22. Forecasting: A Starting Point of Demand Management • A major component of demand management is forecasting the amount of product that will be purchased by consumers or end users. • In the integrated supply chain all other demand will be derived from the _______________. • A key objective is to ______________________ _______________ as it occurs in the marketplace.
  23. 23. Integration of Forecasting and Production © 2017, Customer Services Map
  24. 24. Supply-Demand Misalignment in Traditional Forecasting © 2017, Customer Services Map
  25. 25. Collaborative Planning, Forecasting, and Replenishment (CPFR) • CPFR is recognized as a breakthrough business model for planning, forecasting, and replenishment. • Developed by Wal-Mart and Warner-Lambert in 1995. • The plan and the forecast are entered by suppliers and buyers into an _______________________ system. • Creates a direct link between _________________________ __________________________ • Emphasizes _______________________ among and between supply chain partners. • Within established parameters, any of the participating partners is empowered to change the forecast.
  26. 26. Collaborative Planning, Forecasting, and Replenishment (CPFR) • Collaborative planning improves the quality of the demand signal for the entire supply chain through a constant exchange of information from one end to the other. • CPFR goes beyond the traditional practice. © 2017, Customer Services Map
  27. 27. Figure 3-3 CPFR Business Model
  28. 28. DM in Order Fulfillment Process • ______________________ link between buyers and sellers • _______________________________________ © 2017, Customer Services Map
  29. 29. Order Fulfillment -- Different Stages of Order Fulfillment -- © 2017, Customer Services Map
  30. 30. Order Placement/Receiving Automation © 2017, Customer Services Map
  31. 31. Electronic Data Interchange (EDI) • EDI is “the _________________________, __________________ exchange of business data in a __________, _________________ format. The purpose of EDI is to _______________ and to improve the ____ and ____ of the information flow by linking computer applications between companies.” Source: Emmelhainz, “EDI in Logistics,” Ch. 33 in The Logistics Handbook, 1994, pp. 84.
  32. 32. EDI vs. Traditional Methods Purchasing Buyer’s Computer Post Office Order Entry Seller’s Computer Purchasing Buyer’s Purchasing Application Seller’s Order Entry Application
  33. 33. Why Use EDI? • __________________________________________ – 70% of one computer’s input is another computer’s output – 25% of a transaction’s cost is data entry and re-entry • _________________________ – Greater accuracy and consistency – Time-sensitive • __________________________ – Improved effectiveness of inventory management – Decrease in total logistics costs • Competitive Necessity • Requested by Partners
  34. 34. Effects of EDI on Supply Chain Supplier Mfg D/C Retail End User End User Mfg Supplier D/C Retail
  35. 35. Five Alternative Fulfillment Strategies for E-Commerce 1. Distributed delivery centers 2. Partner fulfillment operations 3. Dedicated Fulfillment centers 4. Third-party fulfillment centers 5. Build to order
  36. 36. Chapter Summary & Review Questions • Inbound logistics vs. Outbound logistics – how is the focus of each process different? • So, what is a business philosophy? • What is the marketing concept? • So, what is the ultimate goal of your business? • What is integrated logistics concept? • Logistics customer service is … • Demand management is … • How CPFR is different from traditional forecasting? • Why do you care about order fulfillment and management? • EDI is …

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