1. The total cost of ownership
Acquisition
Cost
Management Cost
Maintenance Cost
Technical Support
Cost
Operating
Cost
Inventory Cost
Training Cost
Disposal
Cost

2. Shopper behaviour when faced with a stock-out
Source: Corsten, D. and Gruen, T., ‘Stock-outs cause walkouts’, Harvard Business Review, May 2004

3. The impact of logistics and customer service on marketing
Consumer franchise
Customer franchise
Supply chain efficiency
Marketing effectiveness
Brand values
Corporate image
Availability
Customer Service
Partnership
Quick response
Flexibility
Reduced asset base
Low-cost supplier
Market share
Customer retention
Superior ROI

4. Linking customer value to supply chain strategy
Identify value segments
What do our customers value?
Define the value proposition
How do we translate these requirements into an offer?
Identify the market winners
What does it take to succeed in this market?
Develop the supply chain strategy
How do we deliver against this proposition?

5. The ‘Pareto’ or 80/20 rule % Sales/profits ‘A’ ‘B’ ‘C’5%
15%
% Sales/profits
80%
‘A’
‘B’
‘C’
20%
50%
30%
% Products/customers

6. Customer service and the 80/20 rule
Key products, key accounts (protect) A
Develop
Products B
Develop
Maintain C
Review A B C
Customers