1、Good Customer ServiceInventory CostManufacturing Cost Transportation CostCOST OF CUSTOMER SELLERS VIEW$ COSTSHIGHLOWSERVICE LEVELCost of Customer ServiceBuyers View$ COSTSHIGHLOWSERVICE LEVELSource: Ballou, R. H., Business Logistics Management, Fourth Edition, Prentice-Hall International, Inc., 1999

2、.Service Level0100%Source: Christopher, M., “Logistics and Supply Chain Management: Strategies forReducing Cost and Improving Service”, 2nd Edition, Prentice Hall, 1998.Costs of ServiceRevenueCostProfitService Level100%Source: Christopher, M., “Logistics and Supply Chain Management: Strategies forRe

3、ducing Cost and Improving Service”, 2nd Edition, Prentice Hall, 1998.Cost, revenue,& profitThe Pareto or 80/20 ruleSource: Christopher, M., “Logistics and Supply Chain Management: Strategies forReducing Cost and Improving Service”, 2nd Edition, Prentice Hall, 1998.元智大學(xué) 工業(yè)工程與管理系Relationship Between P

4、rofitand CustomersMany lower-profit customers at least cover their costsSeveral customers produce a loss, even on a variable cost basisSmaller customers still grow profitability100Cumulative Percentage of ProfitA few important customers make adisproportionatecontribution to profit0100Cumulative Percentage of CustomersAt this level of customers, the same profit is generated with considerably less effortAt this level of customers, total profit would be much higher than it is nowSource: Mercer ManagementCustomer retention drives earningsChannel integrationWeb and e-mailCall CenterField Sales &