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 (online) against original price Rs 3499 You (the customer) want it… need it…like your life depends on it! (like…whatever) You call 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 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 10 shopping website A logistics footprint reaching 2750 cities 24 hour in-house 400-agent sales center 400+ vendors, 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
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
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