LOGISTIC S & SUPPLY CHAIN MANAGEMENT
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Danger zone
These customers should be looked at very carefully. Is there any medium- to
long-term prospect either of improving net sales value or of reducing the costs of
service? Is there a strategic reason for keeping them? Do we need them for their
volume even if their profit contribution is low?
Cost engineer
These customers could be more profitable if the costs of servicing them could
be reduced. Is there any scope for increasing drop sizes? Can deliveries be con-
solidated? If new accounts in the same geographic area were developed would it
make delivery more economic? Is there a cheaper way of gathering orders from
these customers, e.g. the Internet?
Protect
The high net sales value ...