Logistics

Topics: Inventory, Kanban, Supply chain management Pages: 9 (2756 words) Published: July 16, 2013
TERM PAPER

ENHANCE CUSTOMER SATISFACTION WITH JUST-IN-TIME SYSTEMS

Nguyen Tran Bich Ngoc

01-Jul-13

AGENDA
1. Background information3
2. Research questions3
3. Theoretical knowledge4
a. Customer satisfaction4
b. Just-In-Time system function and its key elements6
4. JIT enhances customer satisfaction8
5. Counter arguments and examples of successful JIT systems10
6. Summary11
References12

LIST OF FIGURES
FIGURE 1.Relationship of the benefits of JIT for organizations and customers.9 FIGURE 2.Kanban system7

1. Background information
The objective of the term paper is to introduce and highlight the benefits of Just-In-Time (JIT) systems for customer satisfaction, and the industry types that can take advantage of the application of JIT systems. Its target is to elaborate how JIT functions and present its relating elements. The term paper is delivered by theoretical analysis. Besides, the effects of JIT systems are proven by some successful applications in certain industries. However, the utilization of JIT system is limited to certain industries. Its scope will be brought out later on. The theoretical framework provides understanding of customer satisfaction, background knowledge of JIT philosophy as well as benefits of JIT for customers. The preceding sections deal with limitation of JIT systems in practice. On the other hand, successful applications of JIT systems are introduced to promote JIT worldwide utilization. This term paper is written according to the author’s professional interest in supply chain management. Supply chain management is striving for relentlessly cut down the costs and optimization of efficiency. Companies’ performance is improved with more efficient and effective supply chain. This results in better customer satisfaction and higher competitive levels. Among numerous of lean methods, JIT is the author’s preferred aspect. 2. Research questions

In order to achieve the objective and target, four research questions are compiled as the backbone of the term paper, as listed below:
1. What would customer satisfaction be like?
2. How does JIT Systems function? And what aspects of customer satisfaction does it improve? 3. Does JIT Inventory have any drawback and is it applicable to all cases? If not, when and why?
4. What are examples of some successful application of JIT Inventory in reality?

3. Theoretical knowledge
a. Customer satisfaction
In this context, the term “Customer” refers to the end users of products or services. Whether they are consumers or organizational users, making a purchase helps to fulfill their needs. Simply, customers will be satisfied when their expectations of supplier’s performance are fulfilled or exceeded. Intensive comprehension of customer expectations is certainly necessary for companies in order to please them. According to a pioneering study, Parasuraman, Zeithaml, and Berry categorized customer expectations into 10 criteria concerning supply chain performance. However, it is the fact that each customer has individual requirements which make customer expectations more complicated in reality. Reliability

Reliability is related to the degree to which supplier accomplishes their promised performance. Specifically, customers assess supplier’s activities of the basic platform. They include issues concerning paper work, accuracy, quality and quantity assurance of consignment. Responsiveness

It refers to the supplier’s ability to provide immediate services corresponding to sudden changes in orders. Suppliers are expected to demonstrate problem solving skills proficiently as well as flexibility and readiness. Time-efficient is, therefore, a must. Access

It should be convenient for customers to contact their suppliers when needed. Hence, the information of products, orders, delivery, etc… is supposed to be accessible. Communication
If access refers to customer’s ease of contact suppliers, communication is...

References: Bowersox, Donald J., Closs, David J. & Cooper, M.Bixby : “Supply Chain Logistics Management”, The MCGraw-Hill Companies,Inc. , 2nd ed. 2007.
Bowersox, Donald J., Closs, David J. and Theodore P.Stank, 21 st Century Logistics: Making Supply Chain Integration a Reality , Oak Brook, IL; Council of Logistics Management, 1999.
Copacino, William C. “Supply chain management: The basics and beyond”, CRC Press LLC, 1997.
Schroeder, Roger G. : “Operations management: Contemporary concepts and cases”, The MCGraw-Hill Companies, Inc., 2nd ed. 2004
Electronics references
[ 1 ]. Bowersox, Donald J. ,Closs, David J. & Cooper, M.Bixby : “Supply Chain Logistics Management”, The MCGraw-Hill Companies,Inc. , 2nd ed. 2007., p. 44-45.
[ 2 ]. Bowersox, Donald J. ,Closs, David J. & Cooper, M.Bixby : “Supply Chain Logistics Management”, The MCGraw-Hill Companies,Inc. , 2nd ed. 2007., p. 56.
[ 3 ]. Bowersox, Donald J. ,Closs, David J. & Cooper, M.Bixby : “Supply Chain Logistics Management”, The MCGraw-Hill Companies, Inc. , 2nd ed. 2007., p. 53.
[ 4 ]. Schroeder, Roger G. : “Operations management”, The MCGraw-Hill Companies, Inc., 2nd ed. 2004., p. 391.
[ 6 ]. Schroeder, Roger G. : “Operations management”, The MCGraw-Hill Companies, Inc., 2nd ed. 2004., p. 377
[ 7 ]
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