-- Product -- Customer Service • Quality, price, and value are relative
Product
Value
Quality Price
Customer service
McGraw-Hill/Irwin
Source:BradleCyoTp.yGraigleh,tM©an2a0g0i1ngbyCTushteomMecrGVraaluwe-(HNiellwCYoomrkp:aTnhieesF, rIenec.PrAeslsl,r1ig9h94ts),rpe.s2er9v. ed.
Calibration Category CVA Levels # of Businesses by Category
World class
>110
15%
Above parity
103-110
25
Parity
98-102
20
Below parity
<98
40
Байду номын сангаас
McGraw-Hill/Irwin
Copyright © 2001 by The McSGoruarwce-:HPiIlMl CSoDmatpaabnasie.s, Inc. All rights reserved.
17-1
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER 17
Measuring and Selling the Value of Logistics
Options for Measuring Value 17-3
1. Customer satisfaction 2. Customer value-added (CVA) 3. Total cost analysis 4. Profitability analysis (includes
considerations) 5. Strategic profit model 6. Shareholder value
Creating Value
17-6
That Customers Can See
Understanding customer needs in a well-defined market
Superior quality in areas that matter to
customers
Effective design and quality control
Customer Satisfaction
Market Share
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Distribution of CVA Levels 17-8
Customer Value Added
17-7
Provide products and services to customers that are a better value than those they could purchase from competitive companies in similar markets
How Customers Select Among 17-5 Competitive Suppliers
• Customer buys on value • Value equals quality relative to price • Quality includes all nonprice attributes
McGraw-Hill/Irwin
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Components of Customer Value 17-4
Product attributes Service attributes
Advertising and other marketing communications
Market-perceived quality
Low “cost of quality” and overall
cost leadership
McGraw-Hill/Irwin
Exceptional customer value
Business results Profitability, growth, and shareholder value
Source:BradCleoypTy.rGigahlet,©M2a0n0a1gibnyg CThusetoMmceGr rVaawlu-eH(iNlleCwoYmoprka:nTiehse, FInrece. PArellsrs,ig1h9t9s4r)e, spe. r1v9e.d.
Transaction cost
Life cycle cost
Risk
McGraw-Hill/Irwin
Perceived benefit Perceived sacrifice
Expected customer
value
Source: Earl Naumann, Creating Customer Value: The Path to Sustainable Competitive Advantage (Cincinnati, OCHo:pTyhroimghsot n©E2x0e0c1utbivyeTPhreesMs, c1G99r5a)w, p-H. 1i0ll3C. ompanies, Inc. All rights reserved.
Calculating CVA
17-9
THE VALUE QUESTION
– Considering the products and services that you purchased. How would you rate them as being worth what you paid for them?