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Customer Order Cycle

Customer Order Cycle

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Customer Order Cycle

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  1. Customer Order Cycle June 25, 2014

  2. Example: HomeShop18 • A view on FIFA World Cup Brazil 2014 Xbox 60 Game on the Homeshop 18 TV channel • Price = Rs 2750 (TV) against Rs. 3099 (online) against original price Rs 3499 • You (the customer) want it… need it…like your life depends on it! (like…whatever) • You call 0120-4455918 CUSTOMER ARRIVAL Customer’s arrival at the location (Living room) where he/she can access his/her choices (TV channel) and makes a decision regarding a purchasing (by calling at the number displayed on TV screen)

  3. Example: HomeShop18 (Contd…) • You inform the tele-marketeer about your decision about FIFA - Xbox game • Telemarketeer enters the order in his/her system and reconfirms the name of the game, number of items of the same product and asks for location delivery details • The delivery of items is within 24 hours to 3 days which is confirmed by tele-marketeer CUSTOMER ORDER ENTRY Customer informs the retailer (tele-marketeer of Homshop 18) about their intention to purchase and the retailer allocates (enter’s the product details, location of customer, contact details, etc) products to the customers

  4. Example: HomeShop18 (Contd…) • The order in the system of HomeShop18 is processed by: • Picking the order from the inventory of their manufacturer • The order is directed from manufacturer to the customer CUSTOMER ORDER FULFILLMENT Customer’s order is filled (by HomeShop18 for manufacturer) and shipped to the customer

  5. HomeShop18: Technology for Service Integrated technology backbone to service customers, vendor and logistics partner

  6. Example: HomeShop18 (Contd…) • You receive the FIFA World Cup Brazil 2014 Xbox 60 Game and signs off the courier guy • Records of the receipt is updated and payment is completed by ‘Cash on Delivery’ CUSTOMER ORDER RECEIVING Customer’s receives the order and takes ownership

  7. Customer Order Receiving • Customer Arrival CUSTOMER ORDER CYCLE • Customer Order Fulfillment • Customer Order Entry

  8. 3Cs

  9. Company: HomeShop18 • TV Shopping • Other virtual initiatives • Web • News • Catalogue • Mobile

  10. Customer: HomeShop18 • India had earlier witnessed teleshopping for • Sauna Belt • Rudraksh • Hair Raising Solutions • Before – and – after Miracles • Coupled with magic products, dubbed infomercial, tacky execution and NO credibility

  11. Competitors: HomeShop18 • Ebay • Indiatimes Shopping • Rediff Shopping • IndiaPlaza • Others

  12. Competitive Advantage India’s 1st& only 24 hour TV shopping channel 24 hour in-house 400-agent sales center In Top 10 shopping website 400+ vendors, 20000 SKUs A logistics footprint reaching 2750 cities Integrated, real-time IT Systems Is this sustainable?

  13. About 3Cs • Developed by Kenichi Ohmae, a business and corporate strategist • Key factors to focus – Corporation or Company; Customer and; Competition • Integration of 3Cs leads to sustained competitive advantage

  14. 3Cs and Sustainability • Company • Customer • Competition • Selectivity & Sequencing • Make or Buy • Cost-effectiveness • Segmenting by objectives • Segmenting by Customer Coverage • Re-segmenting the market • Image • Capitalize on profit and cost structures differences • Hito-Kane-Mono Competitive Advantage

  15. Corporation: Hito-Kane-Mono Phrase • Funds should be allocated in the end • Allocate management talent based on available Mono(things) – plant, machinery, technology, process, know-how, functional strength • When Hito(People) have developed creative and imaginative ideas to obtain upward growth (potential) for the company… • …the generated Kane(Money) should be invested in specific ideas and programs generated by individual managers

  16. Logistics Functions • Information Management • Inventory Control • Transportation • Warehousing • Network Design

  17. Introduction to Supply Chain Management

  18. sources • http://www.logisticsquarterly.com/issues/13-3/article2.html • http://sbaer.uca.edu/publications/supply_chain_management/pdf/04.pdf • http://www.lacpa.org.lb/Includes/Images/Docs/TC/TC278.pdf • http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1565-3cs-model-ohmae.html • http://www.slideshare.net/sarthak8/ohmaes-3-cs-model • http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1565-3cs-model-ohmae.html