January 2023
Intermediate to advanced
250 pages
11h 7m
English
Content preview from Logistics and Supply Chain Management, 6th Edition
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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 recognised 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 because 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? As we can assume that money spent on service is a scarce resource then we should look upon the service decision as a resource allocation issue. ...
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