1. CUSTOMER SERVICE l Providing customers with timely and accurate product delivery which constitutes the driving force in establishing logistical performance requirements. l Customer : individual or organization who is taking ownership of the product or service delivered (internal and external customer). l Customer-focused Marketing (the integration with marketing department) l The marketing concept : the identification of specific customer needs [in different quality, taste and other preferences] then responds to those needs by focusing available resources to uniquely satisfy those requirements.

2. l The key : all work-related activities contribute to meeting customer expectations that leads to an in-depth study of customers to identify product and service opportunities. l Customer’s needs are more basic than products or services. l Stressing profitability : accumulated transactions. l Marketing Mix 5P - satisfying time and place utility to form a core competency that is difficult to duplicate (this situation may lead to gain customer loyalty as a competitive advantage). l Life-Cycle Planning model to recognize the need for viewing logistical requirements across time.

3. l The definition : a process for providing significant value- added benefits to the supply chain in a cost-effective way. l Basic Service Capability. (see previous materials). l Availability : location, stocking policy (forecasted demand and safety stock). The three measurements : stockout frequency, fill rate, orders shipped complete. l Operational Performance : speed, consistency, flexibility and recovery/malfunction. l Reliability

4. l Value-added service : customer-specific, represents alternatives to a zero defect commitment as a way to build customer solidarity. l Customer-focused, promotion-focused, manufacturing- focused, time-focused and basic service.