Measuring and Selling the Value of Logistics

2000 ◽  
Vol 11 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Douglas M. Lambert ◽  
Renan Burduroglu
Keyword(s):  
Customer Satisfaction ◽  
Cost Analysis ◽  
Customer Value ◽  
Shareholder Value ◽  
Value Added ◽  
Profit Model ◽  
Total Cost ◽  
Profitability Analysis ◽  
Total Cost Analysis ◽  
The Impact

In order to receive adequate rewards for the firm's innovations and performance in logistics, managers have to measure and sell the value that is being provided to customers. Value, once determined, must be sold to customers and also to top management within the firm. There are several value metrics mentioned in the literature, ranging in financial sophistication from customer satisfaction to shareholder value including: customer satisfaction, customer value‐added (CVA), total cost analysis, segment profitability analysis, strategic profit model and shareholder value. While customer satisfaction and CVA may lead to the achievement of higher shareholder value, the specific connection to changes in value for the customer or the supplier are typically not made. The other measures focus on the measurement of value in financial terms. However, financial measurements such as total cost analysis only capture part of the value created by logistics. One of the problems faced by logistics professionals over the years is that logistics has been viewed simply as a cost that needs to be reduced. Segment profitability analysis and the strategic profit model are more complete measures of the impact of logistics, but they are used to evaluate historical performance and lack measures of risk and the time value of money that are included in shareholder value.

Can collaborative buffering strategies reduce distribution costs while improving product returns?: A case of an Asian e-retailer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavin Shah ◽  
Gaganpreet Singh
Keyword(s):  
Customer Value ◽  
Time Windows ◽  
Value Added ◽  
Revenue Sharing ◽  
Content Type ◽  
Profit Margins ◽  
Return Policies ◽  
Buffer Time ◽  
Proposed Model ◽  
The Impact

PurposeIn order to achieve competitive advantage over the physical marketplace, the e-retailers are insisted on endowing with lenient return policies. The piece-wise returns-and-reordering process incurs excessive buffering and unwanted logistics costs which raises overall fulfillment charges. The objective of this study is to re-design e-retail distribution policy by providing temporal storage at logistics service provides' (LSP) location. The impact of recurrent returns on pricing and profit margins are also investigated over time continuum.Design/methodology/approachA framework is developed to reduce the non-value added (NVA) storage and distribution efforts by providing collaborative buffering between LSP and e-retailer. The knapsack based buffering approach is tested and compared with traditional e-retail distribution practices. The revenue sharing concept is mathematically modelled and implemented in GAMS, which finally validated through multiple return scenarios.FindingsThe proposed model outperforms the existing one under all scenarios with different configuration settings of re-ordering, profit margins, and buffer time windows. The distribution cost is found, linearly related to the necessary product buffering space. The findings help to re-design sustainable return policies for individual products so that maximum customer value can be yield with minimum costs.Research limitations/implicationsThis study helps to determine the NVA efforts incurred while storing and delivering multi-time returned products to ensure desired service levels. The revenue sharing model provides pricing strategies for e-retail practitioners deciding which product should store in what quantity for how much time at the shipping agency location so that it fulfils the re-ordering at least waiting and sufficient buffering.Originality/valueThe proposed model extends the role of LPSs as temporary buffer providers to reduce returns-and-reordering fulfilment efforts in the e-retail network. This Collaborative framework offers an opportunity to amend the distribution contracts and policies time by time that enhances e-retailer's performance and customer satisfaction.

scholarly journals Total Cost Analysis of Process Time Reduction as a Green Machining Strategy

2012 ◽  
pp. 299-304 ◽  
Author(s):  
Moneer Helu ◽  
Benjamin Behmann ◽  
Harald Meier ◽  
David Dornfeld ◽  
Gisela Lanza ◽  
...  
Keyword(s):  
Cost Analysis ◽  
Process Time ◽  
Total Cost ◽  
Machining Strategy ◽  
Green Machining ◽  
Time Reduction ◽  
Total Cost Analysis

scholarly journals Impact of E-Service Quality and Customer Value on Customer Satisfaction in LocalBrand

2018 ◽  
Vol 9 (2) ◽  
pp. 125-132 ◽  
Author(s):  
Sevenpri Candra ◽  
Mita Juliani
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Significant Influence ◽  
Customer Value ◽  
Partial Least Square ◽  
Least Square ◽  
Research Model ◽  
Statistic Method ◽  
Independent Variables ◽  
The Impact

This research aimed to investigate the impact of e-service quality and customer value on customer satisfaction. This research was descriptive-associative in which researcher described not only the value of research variables but also the influence or relationship between independent variables and the dependent variable. A survey on e-marketplace of online fashion local brand in Indonesia was conducted. Using purposive sampling, the researcher distributed questionnaires to buyers or customers on the LocalBrand (LB) website, and 150 questionnaires were analyzed. Partial Least Square (PLS) was used as the statistic method for analyzing the research model. The results show that customer value has a significant influence on the customer satisfaction. However, e-service quality does not have a significant influence on customer satisfaction.

scholarly journals Nilai Kepuasan Pengunjung Saung Angklung Udjo

Media Wisata ◽  
2021 ◽  
Vol 19 (2) ◽  
pp. 167-178
Author(s):  
Didin Syarifuddin
Keyword(s):  
Customer Satisfaction ◽  
Performing Arts ◽  
Customer Value ◽  
Business Organizations ◽  
Verification Method ◽  
Traditional Art ◽  
Daily Routines ◽  
Visitor Satisfaction ◽  
Thought Patterns ◽  
The Impact

Customers are important people in business organizations, do not depend on the company, not people for debate, so that customer desires are the company's duty to be realized. The study purpose is to explain customer satisfaction value as an impact of implementing customer value. The verification method is used to explain the effect of customer value on customer satisfaction with regression analysis. The results explain that Saung Angklung Udjo performance art is a traditional art performance producing beautiful tones, can foster audience enjoyment and satisfaction, the impact of the growing value of performing arts, service, personal, image and cost value. The growth in visitor value has an impact on the growth of visitor satisfaction so as to foster knowledge, a sense of pleasure and the return of fresh feeling to people who experience boredom from their daily routines. This is an important aspect in society that can be used as a reference in the process of interaction as well as a pattern of behaviour and group thought patterns that are mutually recognized in travelling

scholarly journals The Impact of Customer Satisfaction with EWOM and Brand Equity on E-Commerce Purchase Intention in Indonesia Moderated by Culture

2021 ◽  
Vol 12 (1) ◽  
pp. 41-51
Author(s):  
Angga Febrian ◽  
Muhtad Fadly
Keyword(s):  
Customer Satisfaction ◽  
Brand Equity ◽  
Purchase Intention ◽  
Customer Value ◽  
Moderator Variable ◽  
Independent Variables ◽  
Digital Era ◽  
Independent Variable ◽  
The Impact ◽  
The Relationship

The digital era, which increasingly becomes massive in people's lives, impacts the traditional sales methods. E-commerce companies compete in winning the competition to create superior customer value. An effective and efficient marketing strategy is needed that can influence customer purchase intention. The research focused on the effect of customer satisfaction, which created eWOM and increased brand equity on purchase intention by adding culture (collectivist culture) as the moderator variables. The research used a quantitative approach. The data were obtained from 280 respondents selected by non-probability sampling. Respondents were customers who had already bought products through e-commerce in Indonesia. The questionnaire instrument was adopted based on theories from the previous researchers. The data used the Likert scale and were analyzed using the SmartPLS 3.0. The results state a significant relationship between the independent and dependent variables. All independent variables have a significant influence on the dependent variable. However, culture as the moderator variable cannot get significant results in the relationship between all the variables. It gets irrelevant results. Hence, the results show that the moderator variable is more appropriate as the independent variable. It can directly affect purchase intention. The research contributes to testing culture as the moderator variable that makes the independent variables generalize the findings.

scholarly journals RERANGKAINTEGRASI NILAIPELANGGAN DAN KINERJA MANAJEMEN HUBUNGAN PELANGGAN BERDASARKAN PERSEPSI PELANGGAN KORPORAT

2010 ◽  
Vol 9 (1) ◽  
Author(s):  
Ellen Dwi Cahya ◽  
Siti Rahayu ◽  
Ema Andajani
Keyword(s):  
Customer Satisfaction ◽  
Customer Relationship Management ◽  
Brand Loyalty ◽  
Customer Value ◽  
Relationship Management ◽  
Customer Behavior ◽  
Customer Relationship ◽  
Management Performance ◽  
Behavior Based ◽  
The Impact

This research focuses on the influence of the dimensions of customer value to the customer satisfaction, brand loyalty, and customer behavior-based Customer Relationship Management performance; the influence of customer satisfaction on brand loyalty and customer behavior-based Customer Relationship Management performance; the influence of brand loyalty to customer behavior-based Customer Relationship Management performance. Based on samples taken the corporate customer Hotel Roditha Banjarmasin, then this research shows that customers value that includes emotional value, functional value has a significant impact on customer satisfaction, brand loyalty, and customer behavior-based Customer Relationship Management performance, while the other dimensions of customer value customer perceived sacrifices have no significant impact on customer satisfaction, brand loyalty, but the impact on customer behavior-based Customer Relationship Management performance and social values have a significant impact on customer satisfaction and brand loyalty; customer satisfaction has a significant impact on brand loyalty and customer behavior-based Customer Relationship Management performance ; and brand loyalty has a significant impact on customer behavior-based Customer Relationship Management performance

scholarly journals Economic value added: A financial flexibility tool

2014 ◽  
Vol 12 (1) ◽  
pp. 703-708 ◽  
Author(s):  
Reeta Shah ◽  
Arunima Haldar ◽  
S.V.D. Nageswara Rao
Keyword(s):  
Financial Performance ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Performance Measure ◽  
Corporate Financial Performance ◽  
Economic Value Added ◽  
Financial Flexibility ◽  
The Right ◽  
The Impact

With increased emphasis on shareholder value addition, there has been an ongoing debate on choosing the right measure of corporate financial performance. There is need for a single measure of financial performance that not only measures corporate financial performance but also works as a financial flexibility tool. The financial performance measure employed by the firm measures the value generated by the firm. This necessitates the firms to choose the right performance tool which can reflect the accurate value added by the firm. We study the role and implications of Economic Value Added as a financial performance measure and further discuss its applicability as a tool for introducing financial flexibility. Flexibility is assessed by measuring the impact of organization’s competitiveness and performance. The findings reveal that EVA as a tool enables the corporate to differentiate between value-creating and value-destructing activities and helps managers in taking right decisions which enhances shareholder value. Thus, finally the research makes a case for managers to use EVA as a tool to provide additional information to investors. Interestingly, EVA can also be adapted as a corporate philosophy for motivating and educating employees

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