Professional Documents
Culture Documents
Learning Objectives
Understand the important role of outbound logistics in the logistics supply chain Explain the differences that exist among companies in terms of the scope, complexity, and significance of their outbound logistics system Understand major trends in outbound logistics strategies Discuss the importance, contribution, and role of customer service in outbound logistics systems
Define customer service from different perspectives Understand the basic elements of customer service that are important to logistics managers Explain the standards of performance that are used to measure and evaluate customer service Discuss how companies use customer service to achieve and sustain competitive advantage
Outbound Logistics
Early interest
Higher inventory costs due to higher value products
Outbound Logistics
National Semiconductor
45 day turnaround for 95% of orders not good Four day service Lower cost, higher revenue
Outbound Logistics
Richfood Logistics Profile Cross Docking McKesson and Fleming suppliers New method of distribution less on hand Educate stores on new procedure More doors for trailers to wait for cross dock
Steel Company
Outbound receives more attention
Food Producer
Most challenging outbound due to number of SKUs
Customer Service
Consumer awareness
Mass Customization
Neal Stephenson Diamond Age Matter Compiler/Decompiler & Ractives
Logistics/Marketing Interface
Traditional view
Increasing level of customer satisfaction should equal cost increases
New vision
Competitive advantage
Levels of product - 3
1. Core benefit or service 2. Tangible product, physical product or service 3. Augmented product secondary benefits
Installation, warranties, service after sale
Levels of involvement
CS as an Activity
Order processing / Billing / Handling returns
CS as Performance Measure
Percentage of orders shipped on time Calls answered in 1 hour NOTE, ACTUAL benefits must be double checked (telephone support example)
Channels of Distribution
Channel efficiency Growth and Importance of Channels of Distribution A special Note on Inventory for Outbound Systems Expected Cost of Stockouts
Channels of Distribution
Back Order
Nature of Cost
Lost Sales
Direct Loss Special explanation Calculation
Lost Customer
Difficult Nature
Channels of Distribution