Customer Management

  • David Frederick Ross


As far back as the turn of the twentieth century, business strategists have been wrestling with the theory and practice of integrating the customer with the supply chain. Writing in 1915, supply chain pioneer Arch W. Shaw described distribution as composed of two separate yet interconnected functions: demand creation and physical supply. Demand creation consists in the communication of the value found in the array of products and services a company offers that fulfills the wants and needs of the customer. However, even if a company has the best products and services in the marketplace, they possess no value if they are not available at the desired time, place, and cost wanted by the customer. It was physical supply’s (the supply chain’s) role to solve this basic problem of creating exchange value by ensuring that the flow of the output of production was matched to the customer’s requirements as efficiently and cost effectively as possible. Shaw felt that finding a solution “was the most pressing problem of the business man today” and “in this great task he must enlist the trained minds of the economist and the psychologist. He must introduce the laboratory point of view [1].”

Supplementary material

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Exercise 10.1 Financial affect of reducing cycle time (XLSX 14 kb)
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Exercise 10.2 Cost of preventing a stock out (XLSX 9 kb)
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Exercise 10.3 Service factor and fill rates for a safety stock policy (XLSX 28 kb)
978-1-4899-7578-2_10_MOESM5_ESM.xlsx (27 kb)
Exercises (XLSX 26 kb)
978-1-4899-7578-2_10_MOESM7_ESM.pptx (1.1 mb)
Chapter 10 (PPTX 1142 kb)


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • David Frederick Ross
    • 1
  1. 1.APICSChicagoUSA

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