3. 4
3 stages:
1.Threshold : reach the threshed, further service improvement relative to competition can
show good sales stimulation.
2. Diminishing returns: in this region that most firms operate their logistics system.
3. Decline : that service improvement can be carried too for, with resulting decline in sales.
General relationship of sales to customer service
4. Importance of logistics customer service (II)
Service effects on customer patronage
65 percent of a firm’s business comes
from its present customers.
On the average it is approximately six
times more expensive to develop a new
customer than it is to keep a current
customer.
5
6. Supply chain managers balance total logistics cost factors
against customer service factors
7. • Customer Service Concept
• Lead Time
• Quick response
• Efficient consumer response
• Communication
• Convenience
• Customer Service Standards
INFORMATION AND LOGISTICS
MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN