Measures customer service-related

Number of stock outs Evaluates the MRO inventory/materials management process capability to have the on-hand quantities needed for stock items that are normally stocked in the maintenance storeroom. Provides an excellent countermeasure to ensure planned inventory reduction goal is not detrimental to storeroom customer service. Does not measure nonstock items that require requisitioning/purchasing as direct purchases or availability of project-related items. Percent inventory accuracy Maintains accurate fiscal accountability of stocked items to ensure total confidence in current inventory levels and dollar value of MRO inventories. Measures the effectiveness of the cycle-counting process and storeroom control. 

The appropriate measure should be profit rather than sales revenue or volume. The reason for this is that revenue and volume measures might disguise considerable variation in costs. In the case of customers this cost is the cost to serve , and we will later suggest an approach to measuring customer profitability. In the case of product protitability we must also be careful that we are identifying the appropriate service-related costs as they differ by product. One of the problems here is that conventional accounting methods do not help in the identification of these costs. 

Customer value is the customer-perceived benefit gained from a product/service compared with the cost of purchase. In order to measure customer value, we need to understand what aspects of a product or service it is that a customer values Qohnson and Scholes, 2002). Here, we are primarily interested in aspects of customer value which impact on logistics strategy. Two aspects in particular relate to buying behaviours ... 

EVALUATING FILL RATE GIVEN A REPLENISHMENT POLICY RecaU that fiU rate measures the proportion of customer demand that is satisfied from available inventory. EiU rate is generally a more relevant measure than cycle service level because it allows the retailer to estimate the fraction of demand that is turned into sales. The two measures are closely related, as raising the cycle service level also raises the fill rate for a firm. Our discussion focuses on evaluating fill rate for a continuous review policy under which Q units are ordered when the quantity on hand drops to the ROP. 

A literature analysis marks the starting point of the research process. Relevant research fields are, for instance, supply chain performance measurement or customer service literature rooted in marketing. The theory-based analysis helps to keep track of initial theoretical or practical indications and crystallize them Avithin a first conceptual model explaining the relation between the value drivers of SCM and the EVA as relevant business metric. This part expresses deductive research. The conceptual model is subsequently tested in practice to disclose inconsistencies and customize the degree of specification. Remarks and suggestions made by practice, reflecting the inductive research, inspire fiuther descriptions and improvement. The knowledge acquisition... 

In order to estabUsh this type of service, the maintenance management should meet often with their outside suppHer as weU as with their iaside customers to benefit the end user the external customers. During these meetings the foUowiag steps should be taken to assure nonstop quahty Hsten to the customers, work with customers to clarify expectations, identify measurable iadicators, exceed expectations, deUver products and services when customers need them, keep promises, design for ease of use, constandy improve, focus improvements on areas related to customer expectations, and respond quickly (5). 

Its emphasis on metrics is evidenced by the fact that SYSCO s top ten executive officers meet every Wednesday afternoon and review several hundred metrics for every one of the 157 operating units prior week s performance. SYSCO measures everything related to the receipt, movement, and delivery of products and services to its customers, to new business development, and to every expense and capital expenditure. It measures its return on equity on a weekly basis. 

Example 2 - Resource inputs and customer profitability. Firms invest resources in a customer relationship with the objective of earning a return on that investment. Consistent with this goal, Shapiro, Rangan, Moriarty, and Ross (1987) develop the price versus cost-to-serve (which includes pre-sale, order-related, distribution, and postsale service costs) framework, which links vendor investments to the returns from each customer relationship. This relationship, however, is not a simple one efforts to find a strong correlation between vendor investments in a relationship (as measured by cost-to-serve) and returns (i.e. price paid by the customer) typically fail. Shapiro, Rangan, Moriarty, and Ross (1987) interpret this as evidence that high income does not necessarily mean high cost-to-serve. And nor does low income necessarily mean low cost-to-serve. 

Perceived quality This is another subjective measure related to the reputation of product or a service. This reputation may be based on past experience and partial information, but in many cases the customer s decisions are based on perceived queility because exact information about the other performance measures Usted above is not readily available. 

The quality measurement in a service has to be realized evaluating the feasible requirements from the customer about it, such as those related to maintenance, capability of answer before contingencies, reliability and security of the service. 

Appraisal costs Surveillance and monitoring of services and elements, used resources and tools for evaluation, measurements of relation to customer satisfaction, evaluation of personnel opinion. 

It is crucial to relate the failures to the possible level of affections in customer relationship, and measure these with the service level agreements (SLA), established with the customers and determined by the market as standard. 

As a result, through these equations we have a way to calculate the intangible costs as consequence of a customer complain due to an incident or fault related to maintenance of the service. But in the sector of DNSPs where contracts and standards spin aroimd of service level agreements (SLAs), it would have to align the estimated costs with these service features. This is because the quality measured has to be the perceived and demanded quality by the customer and not fix>m internal performance the costs have to reflect the price of nonperformance (Crosby, 1979). 

Refer to type of 7 wastes in Sect. 2.1 and transportation modes selection principle in Sect. 2.2. In transportation section, they have delivery measurement that is delivery in-full on-time (DIFOT). The researcher had created the significance factors that link between 2 parts. It consists of (1) DC s location, (2) amount of couriers, (3) type of vehicle, (4) how to plan day-to-day operation, and (5) KPIs. Five factors are grouped with 7 wastes/mode selection and related to DIFO. Because of these factors should improve service level and make customer satisfy... 

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