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istics Management and Strategy PowerPoints on the Web, 5th edition, 169。 Alan Harrison, Remko van Hoek and Heather Skipworth 2023 Some approaches: ? Promote integrative behaviours between marketing and SC ? Employ a sales and operations planning (SOP) process ? Develop and implement segmented supply chain strategy Slide Harrison, van Hoek and Skipworth, Logistics Management and Strategy PowerPoints on the Web, 5th edition, 169。 Alan Harrison, Remko van Hoek and Heather Skipworth 2023 Figure The simplified endtoend supply chain for KC Europe Slide Harrison, van Hoek and Skipworth, Logistics Management and Strategy PowerPoints on the Web, 5th edition, 169。 Alan Harrison, Remko van Hoek and Heather Skipworth 2023 Step 4: Develop tailored practices Tailored Practices Function Steady State (High volume, low variability) Selective Statistical (Low volume, low variability) Focus (High volume, high variability) Noise (Low volume, high variability) Sales Minimise promotions Avoid promotions Drive volume through promotion in close collaboration with customer Avoid promotions and validate why a SKU is in the portfolio Marketing Build SKU base Increase volume base and consolidate SKUs Build flexibility into the portfolio Reduce SKU plexity Planning Statistically forecast Statistically forecast Manual forecast based on past history Collaborative forecast with customer and mercial teams Manufacturing Minimise production cycle and production costs Minimise/ maintain production cycle Maximise agility with a must respond mentality Make to order Procurement Focus on quality and cost Focus on quality and cost Minimise order lead time Cover variability with inventory ve: Promotions at product range level segmentation at SKU level ve: Low volume ‘noise’ manufactured centrally so CODP in distribution after manufacture – can’t MTO ve: Procurement cannot be segmented at finished SKU level because procure at material level +ve: Marketing used segmentation to drive SKU rationalisation and product range expansion +ve: Planning used segmentation to drive forecasting approach – statistical for low variability manual collaborative for high variability Slide Harrison, van Hoek and Skipworth, Logistics Management and Strategy PowerPoints on the Web, 5th edition, 169。 Alan Harrison, Remko van Hoek and Heather Skipworth 2023 KimberlyClark Personal care products sold in 175 countries – 100’s of products in 1000’s of variants Slide Harrison, van Hoek and Skipworth, Logistics Management and Strategy PowerPoints on the Web, 5th edition, 169。 Alan Harrison, Remko van Hoek and Heather Skipworth 2023 Using customer value gap analysis for driver selection An example: ? Customer value is assessed by a administered questionnaire ? relative importance (by 100 points across the driver) ? performance is identified by the customers (measured on a 105 Likert scale) Slide Harrison, van Hoek and Skipworth, Logistics Management and Strategy PowerPoints on the Web, 5th edition, 169。 Alan Harrison, Remko van Hoek and Heather Skipworth 2023 Key drivers of customer loyalty Service quality Perceived value Price Product quality Customer loyalty Figure Slide Harrison, van Hoek and Skipworth