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Customer Order Cycle
June 25, 2014
Example: HomeShop18• A view on FIFA World Cup Brazil 2014 Xbox 60 Game
on the Homeshop 18 TV channel• Price = Rs 2750 (TV) against Rs. 3099 (online) against
original price Rs 3499• You (the customer) want it… need it…like your life
depends on it! (like…whatever)• You call 0120-4455918
Customer’s arrival at the location (Living room) where he/she can access his/her choices (TV channel) and makes a decision regarding a purchasing (by calling at the number displayed on TV screen)
CUSTOMER ARRIVAL
• You inform the tele-marketeer about your decision about FIFA - Xbox game
• Telemarketeer enters the order in his/her system and reconfirms the name of the game, number of items of the same product and asks for location delivery details
• The delivery of items is within 24 hours to 3 days which is confirmed by tele-marketeer
Example: HomeShop18 (Contd…)
Customer informs the retailer (tele-marketeer of Homshop 18) about their intention to purchase and the retailer allocates (enter’s the product details, location of customer, contact details, etc) products to the customers
CUSTOMER ORDER ENTRY
• The order in the system of HomeShop18 is processed by:– Picking the order from the inventory of their
manufacturer– The order is directed from manufacturer to the
customer
Example: HomeShop18 (Contd…)
Customer’s order is filled (by HomeShop18 for manufacturer) and shipped to the customer
CUSTOMER ORDER FULFILLMENT
HomeShop18: Technology for Service
Integrated technology backbone to service customers, vendor and logistics partner
• You receive the FIFA World Cup Brazil 2014 Xbox 60 Game and signs off the courier guy
• Records of the receipt is updated and payment is completed by ‘Cash on Delivery’
Example: HomeShop18 (Contd…)
Customer’s receives the order and takes ownership
CUSTOMER ORDER RECEIVING
CUSTOMER ORDER CYCLE
Customer Arrival
Customer Order Entry
Customer Order
Receiving
Customer Order
Fulfillment
3Cs
Company: HomeShop18
• TV Shopping• Other virtual initiatives
– Web– News– Catalogue– Mobile
Customer: HomeShop18
• India had earlier witnessed teleshopping for – Sauna Belt– Rudraksh– Hair Raising Solutions– Before – and – after Miracles– Coupled with magic products, dubbed infomercial,
tacky execution and NO credibility
Competitors: HomeShop18
• Ebay• Indiatimes Shopping• Rediff Shopping• IndiaPlaza• Others
Competitive Advantage
Is this sustainable?
India’s 1st & only 24 hour TV shopping channel
In Top 10shopping website
A logistics footprint reaching
2750 cities
24 hour in-house
400-agent sales center
400+ vendors,
20000 SKUs
Integrated,
real-time IT Systems
About 3Cs
• Developed by Kenichi Ohmae, a business and corporate strategist
• Key factors to focus – Corporation or Company; Customer and; Competition
• Integration of 3Cs leads to sustained competitive advantage
3Cs and Sustainability
Company
• Selectivity & Sequencing
• Make or Buy• Cost-
effectiveness
Customer
• Segmenting by objectives
• Segmenting by Customer Coverage
• Re-segmenting the market
Competition
• Image• Capitalize on
profit and cost structures differences
• Hito-Kane-Mono
Competitive Advantage
Corporation: Hito-Kane-Mono Phrase
• Funds should be allocated in the end• Allocate management talent based on available
Mono (things) – plant, machinery, technology, process, know-how, functional strength
• When Hito (People) have developed creative and imaginative ideas to obtain upward growth (potential) for the company…
• …the generated Kane (Money) should be invested in specific ideas and programs generated by individual managers
Logistics Functions
• Information Management• Inventory Control• Transportation• Warehousing• Network Design
Introduction to Supply Chain Management
sources
• http://www.logisticsquarterly.com/issues/13-3/article2.html
• http://sbaer.uca.edu/publications/supply_chain_management/pdf/04.pdf
• http://www.lacpa.org.lb/Includes/Images/Docs/TC/TC278.pdf
• http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1565-3cs-model-ohmae.html
• http://www.slideshare.net/sarthak8/ohmaes-3-cs-model
• http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1565-3cs-model-ohmae.html