Supply Chain Management

Supervised By
Prof. Dr. Asrar Sabry

Presented By
 Mostafa Saad
 Ahmed Ramadan
 Invest With 25 Billion
Multi Divisions Company USD

Headquarter located in 15000 Customers

Bloomington, Indiana
 Consists of 6
Main
Divisions

Industrial
Electrical Machine Air
Turbines Air Fork Trucks
Generators Tools Compressors
Conditioner
TELCO Dilemma

 pretax profits were falling even though revenues were growing.

The stock market likes TELCO because revenues are growing. However, how they
going to make dividend objectives this year because also the operating profits are
decreasing from last quarter.
 They are constantly exceeding our logistics budget to provide this
outstanding service for customers who shouldn't be getting it.
Sales is constantly promising expedited delivery or special product on runs for
customers who generate very little revenue for us.
How should Telco approach segmenting its customers? That is, on
what basis (cost to service, profitability, etc.) should the customers be
segmented

 Segmentation is the process to split the customer into groups which

can match their interests.
 To segment its customers, Telco should approach segmentation
based on customer profitability, revenue generated, and cost to
service. This will help them identify the most valuable customers
and ensure they receive the appropriate level of service.
 They can also group customers who buy from multiple divisions
together to understand the total value of these customers across the
company.
How should Telco tailor its service offerings to each
customer segment

 Telco should tailor its service offerings based on the segmentation.

1)High-profit, high-revenue customers should receive the highest
level of service, including dedicated customer support, faster lead
times, and more favorable payment terms.
2)Customers with lower profitability and revenue could receive a
more standard service package, focusing on product quality and order
fill rates.
3)Customers who buy from multiple divisions could receive
additional benefits such as bundled shipments and consolidated
invoicing.
Should certain customers be asked to take their business
elsewhere

 In some cases, it might be appropriate for Telco to ask certain

customers to take their business elsewhere, especially if they
consistently generate losses for the company. However, this decision
should be made carefully, considering the potential long-term
impact on Telco's reputation and customer relationships
How should the revised service packages to each segment be
introduced to that segment, By the sales force? Should all
segments be done at the same time

 The revised service packages should be introduced to each segment

by the sales force, as they have the most direct relationship with the
customers. The introduction of new service packages could be done
in a staggered manner, starting with the most valuable segments
first, and then moving to the lower segments. This will allow Telco
to manage the transition smoothly and address any potential issues
before implementing the changes across all segments
Each division has its own sales force, manufacturing facilities, and logistics network. As such, common
customers (those who buy from more than one division) place separate orders with each division, receive
multiple shipments, and receive multiple invoices. Would it make sense for Telco to organize around
customer rather than around product? If so, how would this be done? What would the new organizational
metrics look like
 It could make sense for Telco to organize around the
customer rather than around the product, especially
for customers who buy from multiple divisions. This
would involve creating customer-centric teams that
are responsible for managing relationships with
specific customers across all divisions. The new
organizational metrics could include overall
customer profitability, revenue growth, and customer
satisfaction scores. This approach would help Telco
streamline its operations, reduce redundancy, and
better serve its customers