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Week 2 Questions-Ortega

The document discusses key logistics concepts, including trade-offs between inventory and transportation costs, and the logistics value proposition that balances service quality with cost efficiency. It contrasts transactional and relationship marketing, emphasizing the importance of logistics performance in building long-term customer relationships. Additionally, it highlights the differences between customer service, satisfaction, and success, and examines Gillette's subscription service as a more convenient alternative to traditional retail distribution.

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42 views3 pages

Week 2 Questions-Ortega

The document discusses key logistics concepts, including trade-offs between inventory and transportation costs, and the logistics value proposition that balances service quality with cost efficiency. It contrasts transactional and relationship marketing, emphasizing the importance of logistics performance in building long-term customer relationships. Additionally, it highlights the differences between customer service, satisfaction, and success, and examines Gillette's subscription service as a more convenient alternative to traditional retail distribution.

Uploaded by

diegoisaac2k3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Week 2 Questions

Diego Isaac Ortega Lomeli

BBA 430 - Advanced logistics and Supply Chain Management

September 8th, 2024

Page 68

- Study Question

1. Illustrate a common trade-off that occurs between the functional areas of

logistics

● A typical trade-off in logistics occurs between inventory and transportation costs.

More inventory avoids stockouts but costs more to store. Less inventory means

you need faster and more expensive shipping to meet demand.

4. Describe the logistics value proposition. Be specific regarding specific

customer relationships and cost.

● The logistics value proposition is about finding the mix between good service and

keeping costs low. For some customers, you need to deliver fast and cosistent,

for others, you might focus on cutting costs. You need to meet customer needs

without overspending.
- Challenge Question

2. Why is least total cost performance not always what a customer prefers?

Illustrate a situation that supports your answer.

● Cheap doesn’t always mean good. Sometimes paying more for faster shipping is

worth it to avoid bigger costs. For example, a company might pay extra for a

faster delivery to avoid production delays, which could cost them more than the

shipping in the long run.

Page 95

- Study Question

1. Explain the differences between transactional and relationship marketing. How

do these differences lead to increasing emphasis on logistical performance in

supply chain management?

● Transactional is about quick, individual/one-time sales, while relationship

marketing focuses on building long-term customer loyalty. In supply chain

management, relationship marketing needs consistent logistics to build trust and

keep long-term partnerships, which makes logistics performance important.

4. Compare and contrast the customer service, customer satisfaction, and

customer success philosophies of supply chain management.

● Customer service: Meeting basic needs, like delivering on time.

● Customer satisfaction: Trying to exceed customer expectations.


● Customer success: Helping the customer achieve their goals, by being consistent

and meeting their expectations.

- Challenge Question

1. Gillette has involved itself in omnichannel marketing by establishing a

subscription service for razor blades delivered to consumer homes. How does

this differ in terms of service outputs from its normal distribution process?

● The subscription service gets you razors delivered to your door on a time frame,

so you don’t have to worry about running out. It’s more convenient and flexible

than buying razors in bulk at retail.

Cite:

Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2024). Supply Chain

Logistics Management (6th ed.). McGraw Hill.

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