you know one of the most important techniques to understand in supply chain
is understanding your cost to serve what it costs to serve different customers
with different products all through your network okay so why am I talking about
this on a plane between Sydney and Bangkok you'll understand in just a moment
so really the essence of course to serve is understanding what it costs to
service all of the different types of customers with different products in
whatever location they are so why is an aircraft relevant I don't think it's a
really great example of a business that ruler stands its cost to serve right
down to a my yoke level so if you think about it in people are traveling on
a plane there's all different types of classes of ticket I think there's
something like fourteen different classes of ticket and most buyers of
course you know you traditionally think that first class business class economy
discount economy and so on the really interesting that we need to think about
in terms of these different classes of ticket is of course like they'll come at
different prices and they all come with very different operators so I happen to
be standing up in the business class section of Qantas and I will add that I
don't often buy the business class are used points but there are people in the
first class business class economy they're all kinda different prices why
because they have two feet service expectations that's why there are people
down the back of the plane type in your families you don't gonna pay a lot for
their ticket and that's right the airline can cater for them with discount
tickets you know adequate meal adequate baggage allowance and they're happy
there are people at the front of the client who actually are willing to pay a
lot more for a much higher level of service and they're gonna get a much
more comfortable seats are gonna get much nicer you know they're gonna get
amenity sets in pajamas and quilts and all that kind of stuff so why is this
relevant to supply chain because your customers are your products in your
supply chain follow exactly the same kind of rules so
do you have just a single customer service policy and no supply chain does
everybody get the same level of service if you're offering the same level of
service to everybody all of your customers look probably not doing it
right because different customers want different levels of service and you'd be
surprised some are quite happy with what you might do to be a lower level of
service and some is willing to pay a premium for much higher level of service
and very often that comes down to lead by the time they want faster delivery so
how to think about your customers and your products for a moment and you need
to start differentiating the service offer two different types of customers
if you have that one-size-fits-all service policy you're probably not
satisfying the majority of your customers because some are willing to
pay more for faster debrief son I would want a discount for slower delivery and
when you really understand that in a supply chain you're able to tailor the
service and actually reduce your cost you will understand the cost of
servicing all your different types of customers will be a different product
you will be able to ease back some of the service and think through some of
the other service and other areas overall you can generally reduce the
cost of service by anything up to 15% whilst improving the level of service
and actually improving your sales so airlines are a really good example of
organizations that truly understand what their customers want and differentiating
the service to those customers so have a look at your own business have a look at
you a customer favorite product profile and start to think about how you can
differentiate that service to better match what the customer is looking for
and not only really keep the customers happier but you'll be sliding across in
the long run so what I think lunch is about to be served
better get back to my seat and remember if you like these videos do you like to
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