TITLE

Customer Value: Applying the First Principle of Lean

AUTHOR(S)
Wood, Nigel
PUB. DATE
March 2004
SOURCE
Management Services;Mar2004, Vol. 48 Issue 3, p14
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article discusses the specification of customer value in supply chains. As customer value refers to everything done by suppliers that the customer is prepared to pay for, chains must seek to maximise value to the customer by planning what they do around the customer. A model has been developed by which it is possible to identify the factors which customers look for when they make purchasing decisions. These are basic, performance and delighter. The basic factor is something the customer expects to be present as a matter of course. If it is not, the customer will be dissatisfied or disgusted. Similarly, the absence of a performance factor is likely to result in disgust. However, full implementation can result in delight. They are already present and result in neutral responses from the customer. A delighter factor is something the customer just does not expect and will cause increasing delight if present. Examples include complimentary flowers and chocolates for hotel guests and free insurance and servicing for a car. Meanwhile, reliability, flexibility and cost effectiveness are also key issues among consumers. Ultimately, these will be achieved by applying flow and pull techniques.
ACCESSION #
12802199

 

Related Articles

  • Ethics and the purchaser. Hurst, Rosey // Supply Management;3/2/2006, Vol. 11 Issue 5, p17 

    The article comments on the trend in ethical supply chain issues as a key factor in purchasing decision. The shift of consumers to ethical issues presents purchasers with several challenges. Purchasers need to develop the core competencies of supply chain professionals to incorporate ethical...

  • NHS Supply Chain appoints Jaywing.  // Data Strategy;Jul/Aug2008, Vol. 3 Issue 10, p5 

    The article offers information on the appointment of Jaywing by the British National Health Service Supply Chain (NHSSC) to help refine its sales and marketing communications. The appointment reportedly involves segmenting detailed transactional data collected by the agency regarding purchasing...

  • Panic buying. John, Geraint // Supply Management;12/16/2004, Vol. 9 Issue 25, p4 

    Comments on the shopping habits of consumers in Great Britain during the Christmas season of 2004. Last-minute shopping; Growing popularity of Internet shopping; Increasingly local-versus-global-sourcing debate faced by many in the purchasing community.

  • ASNs Pick Up the Pace for Supply Chains. STOUT, JEFF // Food Logistics;May2013, Issue 146, p20 

    The article discusses the use of advance ship notices (ASN) in supply chain management. The ASN is an electronic communication issued by a vendor or supplier advising customers that a shipment has been created against a purchase order (P.O.). ASNs provide basic information about the order at...

  • Out with rules, in with invention. Hewitt, David // Supply Management;3/4/2004, Vol. 9 Issue 5, p20 

    Looks on post-modern purchasing in Great Britain. Customer-focused purchasing; Treatment of purchasing as a business operating in an internal market with real products, customers and service levels; Supply chain management. INSET: Shoe maker puts its best foot forward, by Steve Smethurst..

  • Be a top flight customer. Morrisey, Helen // Supply Management;8/24/2006, Vol. 11 Issue 17, p30 

    The article focuses on how suppliers rate their customers. Suppliers assess buyers in four ways namely core, development, exploitable and nuisance. Customers need to provide regular, realistic forecasts of what they require their suppliers to help them plan ahead. This can help the customer gain...

  • Reports and events.  // Supply Management;Nov2013, Vol. 18 Issue 11, p51 

    The article presents information on several events related to supply chain including a conference on innovation in public procurement in Poland, the Supply Chain Event 2013 in France, and the Consumer Goods Supply Chain Officer Summit 2013 in China.

  • Soapbox. Mayers, Mike // Supply Management;May2012, p20 

    The author suggests buyers in the supply chain sector to consider their bedside manner when making a procurement. He refers to credibility, trust and an excellent delivery method for tough information as good bedside manners that a supplier must build to gain a positive status among their...

  • Tearing-Out-Your-Hair Time. Buckley Jr., William F. // National Review;5/19/1997, Vol. 49 Issue 9, p63 

    The article comments on some of the concerns of consumers in the U.S. as of May 1997. According to the author, everyone has a bitter memory with regards to availing the services offered by a company and when voicing complaints to companies and their services. As an example, the author cited the...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics