Supply chain management
SUPPLY CHAIN MANAGEMENT Session 4 The reason of Logistics Customer service Forecasting
Barcelona, Fall 2018
Luis J. Díaz. Industrial Engineer. M.B.A.
SUPPLY CHAIN MANAGEMENT
CUSTOMER-FOCUSED MARKETING
Logistics contributes to an organization´s success by accommodating customer´s delivery and inventory availability expectations and requierements.
Four ideas:
Customer needs are more than products or services.
All markets are composed of different segments.
Customers must be readily able to obtain the products they desire.
Profitability contrasted to sales volume.
We can´t give the same customer service level to all customers.
Transactional: Short-term interaction
Relationship: Focused on the development of long-term relations!!!!
SUPPLY CHAIN MANAGEMENT
TRANSACTIONAL VS- RELATIONSHIP MARKETING
AVAILABILITY: Capacity to have inventory when desired by a customer
STOCKOUT FREQUENCY: Probability of not having inventory.
FILL RATE: Magnitude of stockouts over time.
ORDERS SHIPPED COMPLETE
SUPPLY CHAIN MANAGEMENT
CUSTOMER SERVICE ATRIBUTES
FIRM´S ABILITY TO PERFORM ALL ORDER-RELATED ACTIVITIES AS WELL AS PROVIDE CUSTOMERS WITH CRITICAL INFORMATION REGARDING LOGISTICAL OPERATIONS AND STATUS
SUPPLY CHAIN MANAGEMENT
SERVICE RELIABILITY
Order capture
Inventory management
Purchasing and supplier management
Production/manufacturing
Warehousing
Transportation
SUPPLY CHAIN MANAGEMENT
PERFORMANCE INDICATORS IN THE SC (KPI´S) (1)
The first-tier KPIs would be the ones monitored at an executive level in your company, and would perhaps include metrics like:
Logistics costs as a percentage of sales
Inventory turns
Total inventory days
Source-to-deliver cycle time (the time from sourcing raw materials to delivery of finished goods)
SUPPLY CHAIN MANAGEMENT
PERFORMANCE INDICATORS IN THE SC (KPI´S) (2)
CUSTOMER SUCCESS SHIFTS THE FOCUS FROM EXPECTATIONS TO THE CUSTOMER´S REAL REQUIREMENTS : WHICH ARE OUR CUSTOMER´S CUSTOMER NEEDS?
SUPPLY CHAIN MANAGEMENT
CUSTOMER SUCCESS
PHILOSOPHY
CUSTOMER SERVICE
CUSTOMER SATISFACTION
CUSTOMER SUCCESS
FOCUS
MEET INTERNAL STANDARDS
MEET EXPECTATIONS
MEET CUSTOMER´S CUSTOMERS REQUIREMENTS
SUPPLY CHAIN MANAGEMENT
WHAT IS PROJECTED TO BE SOLD ,WHEN AND WHERE”
Logistics forecasts are necessary:
To support collaborating planning.
To drive requirements planning.
To improve resource management.
SUPPLY CHAIN MANAGEMENT
FORECASTING
FORECASTING COMPONENTS:
Base demand
Seasonal demand
Trend
Cyclic
Promotion
Irregular
SUPPLY CHAIN MANAGEMENT
FORECASTING
THANK YOU!