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’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)

CUSTOMER ARRIVAL

• 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

Example: HomeShop18 (Contd…)

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

CUSTOMER ORDER ENTRY

• 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

Example: HomeShop18 (Contd…)

Customer’s order is filled (by HomeShop18 for manufacturer) and shipped to the customer

CUSTOMER ORDER FULFILLMENT

HomeShop18: Technology for Service

Integrated technology backbone to service customers, vendor and logistics partner

• 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’

Example: HomeShop18 (Contd…)

Customer’s receives the order and takes ownership

CUSTOMER ORDER RECEIVING

CUSTOMER ORDER CYCLE

Customer Arrival

Customer Order Entry

Customer Order

Receiving

Customer Order

Fulfillment

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

Is this sustainable?

India’s 1st & only 24 hour TV shopping channel

In Top 10shopping website

A logistics footprint reaching

2750 cities

24 hour in-house

400-agent sales center

400+ vendors,

20000 SKUs

Integrated,

real-time IT Systems

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• Cost-

effectiveness

Customer

• Segmenting by objectives

• Segmenting by Customer Coverage

• Re-segmenting the market

Competition

• Image• Capitalize on

profit and cost structures differences

• Hito-Kane-Mono

Competitive Advantage

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/13-3/article2.html

• http://sbaer.uca.edu/publications/supply_chain_management/pdf/04.pdf

• http://www.lacpa.org.lb/Includes/Images/Docs/TC/TC278.pdf

• http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1565-3cs-model-ohmae.html

• http://www.slideshare.net/sarthak8/ohmaes-3-cs-model

• http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1565-3cs-model-ohmae.html