SUPPLY

CHAIN
STRATEGY
Chapter 4
Name : Helen Octory
NIM : 1670031072
Chapter 4
CUSTOMER If it weren’t for the
RESPONSE customers, logistics would
be easy..”
Most organizations underestimate the value of good
PRINCIPLES AND customers response and harm done by poor customer
response.

SYSTEMS
Consider the following aspects of customers behavior:

75% customers leave 85% dissatisfied

Dissatisfied
caused a company Satisfied level customers tell 9
customer
has nothing to do people

98% will never

2% complain 13% tell 20 people
complain

A 5% retention rate A satisfied customer

will increase profits Next 6 years tells five people
from 25% to 55%

65% due to
80% will leave
something you did
 Customer response, including customer service and order
processing, is the first of the five logistics processes:
• Ahead of inventory planning and management
• Ahead of supply
Customer demand • Ahead of transportation
is the fountainhead • Ahead of warehousing

for all logistic The objective of each of the other four logistics processes
activities. is to satisfy the customer response requirement at the
lowest possible cost.

Customer response is first because

4.1 CUSTOMER RESPONSE FUNDAMENTALS AND NOTATIONS
Before developing the customer the customer response master plan, aech
organization must make a clear distinction between the customers and consumers of
its products and services. The consumer is the last party in the logistics chain.

The customer may or may not be the last party in the logistics chain. Depending
on where you are in the supply chain, you may have no idea who is consuming your
product, but you should always have a good relationship with the customer of the
product.