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Logistic

The document discusses how changing consumer behavior impacts logistical decisions. It provides examples of how customized customer preferences, evolving family roles, and heightened expectations affect inventory management, order fulfillment, supply chain flexibility, and other logistical areas. Specific examples are given around delivery options, grocery services, and same-day auto part delivery.

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11 views

Logistic

The document discusses how changing consumer behavior impacts logistical decisions. It provides examples of how customized customer preferences, evolving family roles, and heightened expectations affect inventory management, order fulfillment, supply chain flexibility, and other logistical areas. Specific examples are given around delivery options, grocery services, and same-day auto part delivery.

Uploaded by

Vân Lê
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Tên nhóm: Nhóm 5 - Câu 1.5 - Lớp 47K01.

2
Thành viên:
Nguyễn Khánh Quyên - 28 - đóng góp 100%
Sầm Ái Linh - 15 - đóng góp 100%
Lê Đức Minh - 16 - đóng góp 100%
Nguyễn Lê Thanh Vân - 40 - đóng góp 100%
1.5. How do changing patterns of consumer behavior impact logistical decisions?

Although changes in consumer behavior are commonly the purview of the


psychology and marketing disciplines, such changes have important logistical
implications as well. Various instances of shifts in consumer behavior, encompassing
the customized consumer, evolving family roles, and heightened customer
expectations, along with their potential logistical consequences, will be clarified to
support the influence between consumer behavior and logistical decisions. Here are
several ways in which consumer behavior influences logistics:

Inventory Management: Customized customer preferences may lead to a wider


range of product variants and SKUs. Businesses need to manage their inventory
efficiently to meet diverse customer demands while avoiding overstocking or
stockouts. Advanced forecasting and demand planning become essential.
Order Fulfillment and Customization: Meeting customized customer preferences
often involves order customization. Logistically, this requires flexible and agile
manufacturing processes, efficient picking and packing systems, and the ability to
handle varied product configurations.
Supply Chain Flexibility: The dynamic nature of changing family roles and customer
expectations requires a flexible supply chain. Businesses may need to adjust
production schedules, reorder points, and distribution strategies to adapt to shifting
consumer behaviors and demands.
And other ways, so to understand more, we can see three below examples:

a. Customized customer:
The customized customer signifies that the customer desires a product offering that
is highly tailored to the customer’s exact preferences. One approach for addressing the
customized customer is through mass customization, which refers to the ability of a
company to deliver highly customized products and services that are designed to meet
the needs and wants of individual segments or customers.
Customized customer means the companies need to tailor their products to customers’
needs but ensure to remain competitive cost. The customized customer will not accept
a “one size fits all” approach, and this means that logistics systems must be flexible
rather than rigid.
As an example, Logistics providers like FedEx and UPS understand the
importance of providing flexible delivery options to their customers. Customers can
choose same-day delivery, next-day noon delivery, next-day delivery before business
hours, or second-day noon delivery, etc. By offering options like same-day delivery,
next-day delivery at different times, or second-day delivery, they allow customers to
choose the service that best fits their preferences and budget.
Pricing structures often reflect service levels and delivery speeds. As a general
rule, the earlier the delivery time, the more expensive the shipping cost. This allows
logistics providers to balance the increased costs associated with expedited delivery
while meeting customer demand for time-sensitive shipments.
Logistics service providers can attract a broader customer base and cater to
different market segments. By offering a variety of delivery options. Some customers
may prioritize speed and be willing to pay a premium for same-day or next-day
delivery, while others may choose more cost-effective options with longer transit
times. .
Increasingly flexible logistics systems allow businesses to meet diverse customer
needs effectively. It allows customers to choose the level of service that best suits
their requirements while maintaining a balance of costs and efficiency for logistics
service providers.

b. Changing family roles:

Changing family roles can significantly impact logistical decisions, requiring


flexibility and creativity to adapt household routines. In the United States,
approximately 60 percent of families with children report that both parents work. One
consequence of these dual-income families has been an increasing emphasis on the
convenience associated with a family’s grocery shopping experiences. Therefore,
retailers use advanced technology to provide the most convenient service for dual-
income families. For example, retailers will use an on-demand grocery delivery
service. This service allows customers to place an online order and receive their
groceries at home within a few hours. This service is very convenient for busy
families who don't have time to go grocery shopping. Or they will use a
ready-to-eat/ready-to-cook food service. This service provides pre-cooked meals or
meals that can be reheated and eaten immediately. This service is very convenient for
busy families who don't have time to cook. Examples have its own logistical
challenges that need to be addressed to ensure a convenient and quality shopping
experience for customers.
c. Rising customer expectations
Example:
Toyota Motor Company's North American Parts Operations exemplify
escalating customer demands. Toyota now provides same-day delivery of car
components to select dealerships in major metropolitan regions, aiming to retain
customers and prevent them from switching to other repair facilities. Toyota's
restructuring of its car parts distribution network enabled same-day delivery.
Analyzing:
Customer satisfaction: By providing same-day delivery, Toyota can reduce the
waiting time and inconveniences for their customers and clients who need repair in a
rush or do not want to wait for too long. With this, they can increase their customer
loyalty and retention as well as enhance Toyota’s reputation for quality and service
not just for their base-customers but also new customers as well.
Competitive advantage: By offering same-day delivery, Toyota can
differentiate itself from other competitors (car manufacturers, repair facilities) that
may not have the same capability or speed. This can help Toyota alot by giving them
an edge in attracting and retaining customers who value convenience and reliability.
Cost efficiency: By redesign its car parts distribution network, Toyota can
optimize its inventory level, transportation routes, and warehouse location. By
consolidating or expanding inventory in different distribution centers, Toyota can
reduce the risk of stockouts or overstocks, and balance the trade-off between
inventory holding cost and transportation cost. Moreover, by selecting the most
efficient and reliable transportation modes and carriers for different types of car parts,
Toyota can reduce the delivery time and cost, as well as the environmental impact, of
its shipments. Lastly, by choosing the best locations for its distribution centers, Toyota
can minimize the distance and time to reach its customers, as well as take advantage
of the availability and cost of real estate, labor, and infrastructure.

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