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CUSTOMER SERVICE Providing customers with timely and accurate product delivery which constitutes the driving force in establishing logistical performance requirements. Customer : individual or organization who is taking ownership of the product or service delivered (internal and external customer). Customer-focused Marketing (the integration with marketing department) The marketing concept : the identification of specific customer needs [in different quality, taste and other preferences] then responds to those needs by focusing available resources to uniquely satisfy those requirements. The key : all work-related activities contribute to meeting customer expectations that leads to an in-depth study of customers to identify product and service opportunities. Customer’s needs are more basic than products or services. Stressing profitability : accumulated transactions. Marketing Mix 5P - satisfying time and place utility to form a core competency that is difficult to duplicate (this situation may lead to gain customer loyalty as a competitive advantage). Life-Cycle Planning model to recognize the need for viewing logistical requirements across time. The definition : a process for providing significant valueadded benefits to the supply chain in a cost-effective way. Basic Service Capability. (see previous materials). Availability : location, stocking policy (forecasted demand and safety stock). The three measurements : stockout frequency, fill rate, orders shipped complete. Operational Performance : speed, consistency, flexibility and recovery/malfunction. Reliability Value-added service : customer-specific, represents alternatives to a zero defect commitment as a way to build customer solidarity. Customer-focused, promotion-focused, manufacturingfocused, time-focused and basic service.