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"A Customer Is The Most Important Visitor On Our Premises" - Mahatma Gandhi
"A Customer Is The Most Important Visitor On Our Premises" - Mahatma Gandhi
Module 3
A customer is
the most important visitor on our
premises - Mahatma Gandhi
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Suppliers
Customers
within the value chain of a business unit
across business unit value chain within the
firm
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Customer-Focused Organization
Understand current and future customer
requirements
Meet customer requirements
Strive to exceed customer requirements
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Product Inquiry
Quotation
Order Configuration
Order Booking
Order Acknowledgment / Confirmation
Order amendment
Order processing
Order Execution / Sourcing / Planning
Billing
Shipment
Delivery
Settlement
Returns by customers
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CRM PROCESS
Customer Acquisition
Customer Retention
Lifelong Customer
Customer Focused Business
4 Ps of Marketing in CRM: Product,
Price, Placement and Promotion.
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Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Safety
Product warranty
Other perceptions
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Advantages
Focus on Core Competencies
Best Practices
Investment
Organizations can save considerable amount of investment that may be
required in building logistics assets, networks and facilities like
warehouses. Companies can outsource these requirements by outsourcing
logistics and invest in developing their core processes.
Economies of scale
3PL who own assets would have considerable size, large customer base,
and considerable resources, which in turn mean economies of scale.
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Disadvantages
Cost
Outsourced logistics may cost more than running in-house
operations.
Customer orientation of 3PL
How customer oriented or flexible is the 3PL is important.
These intangible benefits need to be carefully evaluated.
Asset owning v/s non-asset owning 3PL
Whether 3PL owns assets or does not own assets should
be considered in decision-making.
3PL who own assets would have considerable size, large
customer base, and considerable resources, which in term
mean economies of scale. On the other hand they may
tend to favor their own divisions and may not be flexible
enough.
Non-asset owning 3PLs may not own assets but they
would tend be more flexible, allowing them to tailor
services to suit the client needs.
3PL Services:
1. Transportation Management
3PLs fleet (or alliance partners) offer optimized network
to serve their customers.
Shipment Management System (SMS) allows 3PLs to
plan load management, routing, and equipment and driver
management, network freight analysis.
SMS can be effectively integrated with Warehouse
Management Software (WMS), to provide integrated
logistics solutions concepts like multi-stop workload or
less than truckload are often used to serve their customers
better.
Multi-vendor consolidation reduces overall costs. Full
truckload economies can be used to combine freight from
different vendor to common destinations.
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2. Warehouse management:
3PLs run and manage warehouses using Warehouse
Management Systems, radio frequency scanning, and
bar code labeling
3PLs manage and track the movement of goods from
initial receipt to outbound shipment. Real time,
periodic and accurate information can be provided to
manage inventory and demand better.
Additional services like advanced shipment
notifications can be generated to inform the retail
partners in the supply chain.
3. Packaging
3PLs often have ability to do final product packaging
in their warehouse, thus eliminating the need to ship
product to off site packaging companies. This in turn
means reduced product handling, reduced cycle time
and reduced costs.
3PLs can offer variety of packaging services like
custom pallets, display shippers, inserts and coupons,
labeling and printing, repackaging / conversion and
also wrapping and bundling.
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