1. E-Business And The Distribution Network

2. DiSa, Flex Pricing, Funds transfer Cost
Impact of E-Business
Customer Service
PPROCT
DiSa, Flex Pricing, Funds transfer
Cost
Inventory, Facilities Transportation Information

3. IMPACT of E-Business on Customer Service
Response Time to Customers:
Product Variety
Product Availability
Customer Experience
Faster Time to Market

4. IMPACT of E-Business on Customer Service [contd…]
Order Visibility
Returnability
Direct Sales to Customers
Flexible Pricing, Product Portfolio and Promotions
Efficient Funds Transfer

5. Response Time to Customers
In selling products that cannot be downloaded, an e-business without a physical retail outlet takes longer to fulfill a customer request than a retail store.
Example:
A mutual fund prospectus or music can be downloaded from the Web.
Whereas a physical mailing of these products or even making a trip to a music store takes much longer.

6. Product Variety Product Availability
More selection compared to the bricks-and- mortar store. Example: Amazon
Product Availability
An e-business greatly increases the speed with which info on customer demand is disseminated throughout the Supply chain, giving rise to accurate forecasts

7. Customer Experience
Allows access to customers who cannot access a physical stores open only during business hours
surge in orders after their bricks-and-mortar store closes.
Without e-business, see people staying in and around visit you

8. Faster time to market Order visibility Returnability
Dell often introduces new products earlier than its competitors' that use traditional channels.
Order visibility
Returnability

9. Direct Sales to Customers
Allows manufacturers to enhance revenues by bypassing intermediaries and reaching out directly to customers.
This allows collection of intermediary’s incremental revenue.
Example:Dell

10. Flexible Pricing, Product Portfolio and Promotions
An e-business, can easily alter prices by changing one entry in database linked to its Web site.
Advantage:
Pricing can be done based on current inventories and demand.
Example:
Airlines make available last minute low cost fairs……
Analogous to vegetable market….

11. Efficient Funds Transfer
An e-business enhances revenues by speeding up collection.

12. Some probable questions
What has been the impact of e-business on supply chain cost?
What has been the impact of e-business on customer service?
In the future, do you see the number of distributors decreasing, increasing, or staying about the same?
Is e-business likely to be more beneficial in the early part or the mature part of a product’s life cycle?

13. Smile Girl: What is the price of this dress? Shopkeeper: Rs. 10,000/-
Girl: Aww!
Girl: ok what is the price of the pink dress?
Shopkeeper: Aww! + Aww!

14. Impact of E-Business on Cost

15. DiSa, Flex Pricing, Funds transfer
Impact of E-Business
Customer Service
PPRROCT
DiSa, Flex Pricing, Funds transfer
Cost
Transportation,
Information
Facilities,
Inventory,

17. Customer Service Dimension
The Customer service dimension –
Customer Service and Customer Retention,
Service driven logistics systems,
Setting customer service priorities and
service standards

18. Customer should be prime focus

19. What is Customer Service?
Customer service is the provision of service to customers 
before,
during and
after a purchase.

20. Significance of Customers
No value in the product or service until it is in the hands of the customer
The importance of customer service may vary by product or service, industry and customer.
Good customer service experience =
change in entire perception a customer wrt the organization.

21. Availability- the concept
Delivery frequency
Reliability
Stock levels
Order cycle time
Interaction among all these
affects the process of
making products & services
available to whom ?

22. Argument -> Decline in Quality Customer Service
To address this argument,
many organizations have employed a variety of methods to improve their customer satisfaction levels,
and other key performance indicators (KPIs)

23. Customer Service Practices
Customer service could be examined under :
Elements
Pre- transaction elements
Transaction elements
Post-transaction elements

24. Pre- transaction Elements
Corporate policies or programs
 i.e. written statements of service policy,
adequacy of organizational structure and
system flexibility.
Transaction Elements
Variables directly involved in physical distribution.
 Order cycle time,
Inventory availability
Order fill rate, Order status information
For example:- • Written customer service policy It is communicated internally and externally, is it understood, is it specific and quantified where possible? • Accessibility  Are we easy to contact/ do business with? Is there a single point of contact? • Organization structure Is there a customer service management structure in place? What level of control do they have over their service process? • System flexibility Can we adapt our service delivery system to meet particular customer needs?

25. Post- transaction Elements
The post transaction elements of customer service are generally supporting of the product while in use e.g.
product tracing / warranty,
parts and repair service,
procedures for customer complaints and product replacement. 

27. How dangerous is a Stock-out?
Switch in brand loyalty
Cost penalty for:
Manufacturers
Retailers
46% of potential sales

28. The New Competitive Environment
Many companies have suffered, why?
Their focus -> traditional Marketing
Product development
Promotional activities
Price competition via reduction in logistics
Are these important?
Yes they are but not at the cost of logistics

29. = ≠ Cost cutting Low cost strategies Low cost strategies
Efficient logistics = ≠
Effective logistics

30. New strategy
The impact of logistics has resulted in a focus on marketing towards…
Creation of customer franchise
Creation of consumer franchise
The above two can be enhanced or diminished based upon the efficiency of the suppliers’ logistics system.

31. Customer Service and Retention
“People don’t
buy products,
they buy
Benefits”
-Theodore Levitt
What do you understand from that?

32. What would you buy. A) An HP laptop B) lenovo laptop with free
What would you buy? A) An HP laptop B) lenovo laptop with free accessories

34. Lifetime value of a customer
The lifetime value of a customer is much greater than the profit generated from just a single deal with that customer.
A simple formula follows:
Lifetime value = Average transaction value * Yearly frequency of purchase* customer life expectancy

35. Service-driven logistics systems
The role of logistics can be seen as the development of systems and the supporting co-ordination processes to ensure that customer service goals are met.
Main idea of service driven logistics systems : to meet predefined service goals. 
Ideally all logistics service systems are defined along the following lines:
Identify customers' service needs
Define customer service objectives
Design the logistics system

36. Setting service standards
We are entering the era of supply chain competition - the fundamental difference here is that the company cannot act individually but ….
must act as a supply chain entity to ensure competitiveness in the marketplace.

37. Setting customer service priorities
As the new competitive context of business continues to change, brining with it new complexities and concerns for management generally, it also has to be recognized that the impact of these changes on logistics can be considerable.
Of the many issues facing organizations today perhaps the most challenging are in the area if logistics.

38. Why people are hooked on to machines
Why people are hooked on to machines? Why can’t they stay away from their fb status updates even during a lecture?
Why people are hooked on to cell phones?
“The feeling that ‘no one is listening to me’ make us want to spend time with machines that seem to care about us.” (Sherry Turkle) Connected, But ALone