September 2010
Intermediate to advanced
288 pages
10h 16m
English
Content preview from Logistics and Supply Chain Management, 4th Edition
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LOGISTIC S & SUPPLY CHAIN MANAGEMENT
46
Setting customer service priorities
Whilst it should be the objective of any logistics system to provide all customers
with the level of service that has been agreed or negotiated, it must be recog-
nised that there will inevitably need to be service priorities. In this connection the
Pareto Law, or 80/20 rule, can provide us with the basis for developing a more
cost-effective service strategy. Fundamentally, the service issue is that since not all
our customers are equally profitable nor are our products equally profitable, should
not the highest service be given to key customers and key products? ...
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