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H o w e v e r , b y r e e n g i n e e r i n g t h e s e r v i c e p a r t s s u p p l y c h a i n c o m p a n i e s c a n :? C r e a t e c o m p e t i t i v e d i f f e r e n t i a t i o n ? I m p r o v e c u s t o m e r r e t e n t i o n? I n c r e a s e e a r n i n g s f r o m a f t e r s a l e s s u p p o r t? R e d u c e d c o s t o f a f t e r s a l e s s u p p o r t a 5 Cost a d v a nta g eVal ue a dv ant ageS er v ic e lo g is ti cs as d ri v er o f c om p et it iv e ad v ant ag eFo c us o n C ust om erVal ue AddedFo c us o n Pr oc essI mpr ov eme ntCo st a nd Se r v i c eL ea derCo mmo dit yL o g ist ics lev erag e O p p o rt uni t ies? T ailo red serv ice? Reli ab ili t y? Resp o nsiv eness? C o nsist ent cust o m er exp erienceL o g ist ics lev erag e O p p o rt uni t ies? C ap acit y utilisat io n? I nv ento ry m anag em ent? Sched ule i nteg rat io n a 6 Labour Material Purchases Overheads Net receivables Inventory Cash Cost of sales Sales Net operating profit Cost of debt Cost of equity Net working capital Fixed assets Capital employed True cost of capital Capital charge Economic value added + + + + + x 7 () ( ) Demand characteristics Predictable Unpredictable Supply characteristics: Service level agreement Long leadtime: +3 days Short leadtime: 24 hours 2448 hrs () 8