Summary of the fuzzy model

This chapter addresses the correlation between revenues and SCM. Thus, it goes further into the question of the extent to which SCIs contribute to a company s revenues. Quite contrary to costs and capital commitment, the impact of SCIs on revenues is of an indirect nature. In respect of SCM, the central value driver for revenues is logistics customer service, which provides a basis for customer satisfaction (e.g., Ballou, 2006 Ellram Liu, 2002 Pohlen Coleman, 2005). Customer satisfaction in turn affects the financial performance and the revenues of a company (e.g., Dresner Xu, 1995 Yeung, 2008). The known relations between logistics customer service and customer satisfaction, customer satisfaction and customer loyalty and customer loyalty and revenues is used to derive the nature of the correlation between logistics customer service and customer satisfaction. 

The introduced fuzzy model computes the required components for the definition of the logistics customer service-revenue curve. The calculation includes a standardization of logistics customer service, by operationalizing into the four service factors lead time, delivery quality, reliability and flexibility. This ensures comparability due to widely different comprehensions of logistics customer service widely in practice and theory. Furthermore, the model considers external factors ftom a company s perspective in terms of industry characteristics, as well as customer s and competitor s reactions to alterations in logistics customer service. 

The exact curve progression is determined by surrounding conditions like product, customers, industry or company (Hsin-Hui et al, 2009). 

The introduced hizzy model causes a shift in focus of decision-makers regarding SCls, from purely cost reductions to increasing revenues. Since the company s decisionmakers have the opportunity to pre-estimate the financial effects of alterations in logistics customer service. The various factors that have to be considered in this context are depicted by the fuzzy model. Hence, it fi ames the various determinants of the topic and can be regarded as a starting point for improvement and detailed considerations. 

Managerial and scientific insights on the vaiue determ ination ofSCis 

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