10-Customer Value Chain Management
Uploaded by
Ritesh Ranjan10-Customer Value Chain Management
Uploaded by
Ritesh RanjanCustomer value and supply chain
management
• Discussion on Dell’s direct business model
The Value Chain
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
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
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
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)
Airline pricing model
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
SCOR Valuation Metrics
(Supply Chain Operations Research Model)
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
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 .
