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- Measure value of its products or service by customer satisfaction
- Customer value drives changes in SC
- >is a critical input in determining type of SC
Dimensions of Customer Value
- 1. Conformance to requirements
- 2. Product selection
- 3. Price and brand
- 4. Value-added services
- 5. Relationships and experiences
1. Conformance符合 to requirements
- ability to match supply and demand
- If the supply chain is not designed by
- taking into account the specific characteristics of the market
- ☛consequences can be severe
- e.g. if the demand is highly variable, then the focus of the supply chain should be on flexibility and reducing lead times
- ☺delivered to the market before the conditions change.
- ☠customer requirements cannot be satisfied, sales are lost, and obsolete inventories accumulate.
2. Product selection
where to draw the push-pull boundary in the supply chain has a strong impact on what product portfolio can be offered.
e.g. if finished products are made-to-stock and kept in a central inventory until a customer order arrives, then it may not be possible to meet the demand for all types of product configurations.
On the other hand, if the push-pull boundary is at the assembly operation, as it is in the Dell case, it is possible to offer a greater variety of products.
3. Price and brand
- An important component of price is cost.
- Supply chain decisions determine production, inventory and transportation costs, and affect the ability of a company to offer low prices.
- decision impact the brand recognition of a product
- hard to build a prestigious brand name if the supply chain produces defective products, does not meet delivery due dates, and does not provide support for its products after the sale.
4. Value-added services
- Consider, for example, service and
- maintenance support. Clearly, in order to perform these activities, the supply
- chain must satisfy certain requirements. For instance, if on-site support is
- provided, then it may be necessary to keep component inventories close to the
- major customer locations in addition to the necessary personnel to perform
- these activities.
- Also, if a piece of hardware needs to be sent
- back to the factory to be fixed, then reverse logistics operations must be
- planned, e.g., pick-up from the customer site, transportation back to the factory, etc.
5. Relationships and experiences
- In order to ensure that the learning
- process enhances customer value, it is critical to install the necessary
- information loops in the supply chain.
Also, consider the Dell example, in which Dell manages the entire purchasing process of large customers including special custom features. In this case, the supply chain must have enough flexibility in production and distribution to accommodate customer-specific demands.
- For instance, if databases are used to
- track customer preferences, then this data must be fed back to the product
- design process, and eventually a superior product must reach the customer.
- Clearly, this may require additional investment in information technology