Customer Order Cycle June 25, 2014 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) 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 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 HomeShop18: Technology for Service Integrated technology backbone to service customers, vendor and logistics partner 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 Customer Order Receiving Customer Order Fulfillment Customer Arrival Customer Order Entry 3Cs Company: HomeShop18 • TV Shopping • Other virtual initiatives – Web – News – Catalogue – Mobile 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 Competitors: HomeShop18 • • • • • Ebay Indiatimes Shopping Rediff Shopping IndiaPlaza Others Competitive Advantage India’s 1st & only 24 hour TV shopping channel In Top 10 shopping website A logistics footprint reaching 2750 cities 24 hour in-house 400-agent sales center 400+ vendors, 20000 SKUs Integrated, real-time IT Systems Is this sustainable? 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 3Cs and Sustainability Company • Selectivity & Sequencing • Make or Buy • Costeffectiveness Customer • Segmenting by objectives • Segmenting by Customer Coverage • Resegmenting the market Competition • Image • Capitalize on profit and cost structures differences • Hito-KaneMono 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 Logistics Functions • • • • • Information Management Inventory Control Transportation Warehousing Network Design Introduction to Supply Chain Management sources • http://www.logisticsquarterly.com/issues/133/article2.html • http://sbaer.uca.edu/publications/supply_chain_managem ent/pdf/04.pdf • http://www.lacpa.org.lb/Includes/Images/Docs/TC/TC278.p df • http://www.mbaskool.com/business-concepts/marketingand-strategy-terms/1565-3cs-model-ohmae.html • http://www.slideshare.net/sarthak8/ohmaes-3-cs-model • http://www.mbaskool.com/business-concepts/marketingand-strategy-terms/1565-3cs-model-ohmae.html