Logistics and Customer Value

Unit 4 Assignment: Logistics and Customer Value

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The connection between logistics and customer value is not always clear. Part of the problem is that the term value means different things to different people; it is somewhat subjective even when it can be calculated objectively, as there are factors of judgment involved.

This assignment will assess your knowledge based on the following Outcome:

This assignment has you consider several factors of judgment from this perspective. Ensure that your paper includes each of the following topics with an appropriate breadth and depth demonstrating knowledge of the outcome.

Iceberg Effect:
How is the Iceberg Effect an illustration of a factor of judgment?

Perception versus Reality:
How does the concept of Perception versus Reality impact the interaction between stakeholders that need to work together to get results within the professional career field of logistics?

Review these two concepts and include a comparison of the Iceberg Effect and Perception versus Reality principles. With a focus on accuracy, describe how these concepts would aid an employee in making a recommendation related to a purchase decision.

SCM Standard Requirements

This assignment should be a separate MS Word document, preferably in the most current .docx file format.

In addition to the current APA style title page and reference page; ensure your paper covers the assigned topics, with a focus on quality. The following items provide additional guidance as to writing expectations.

Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your paper should be highly organized, logical, and focused.

It must be written in Standard English; demonstrating exceptional content, organization, style, grammar, and mechanics.

Your paper should provide a clearly established sustained viewpoint and purpose.

Your writing should be well ordered, logical, and unified; as well as original and insightful.

Ensure your paper uses current APA format for content, with properly indented paragraphs, and a minimum of 3-full pages covering the assigned topics to appropriate depth.

A separate page at the end of your research paper should contain a list of references, in current APA format. Use your textbook, the Library, and the internet for credible research.

Ensure you have at a minimum three quality references supporting your work: defining words, or using dictionaries, wikis, or encyclopedias, does not count as a quality reference, or meet university standards for credible online research.

Be sure to cite both in-text and reference list citations were appropriate and reference all sources. Your sources and content should follow proper APA citation style. Review the current APA formatting and citation style found at the Writing Resources accessed through the Academic Success Center within the Academic Tools area of the course. It should include a title page, paper is double-spaced, in Times New Roman 12-point font, correct citations, Standard English with no spelling or punctuation errors, and correct references at the bottom of the last page.

ANSWER

Logistics and Customer Value

Iceberg Effect 

According to the iceberg principle, more than 85% of total experienced emergency costs are below the surface. They are often invisible to outsiders, and most people are unaware of them (McKinnell et al., 2020). People usually judge from the company’s external factors that fail to understand and notice that other internal factors may impact a business’s operations. Outsiders neither have access to nor understand the bulk and any additional information regarding a company operation. It is often compared to an iceberg because, just like an iceberg, people see just the tip, a small portion, and they cannot understand how big it is. The little that people see cannot determine the bigger picture of the iceberg.

The iceberg effect illustrates a judgment factor because it talks about the outer and smaller portion of the iceberg (Bojanic et al., 2016). It elaborates and compares an organization to an iceberg because people only see a smaller part of it when people see an iceberg. From what they see, they cannot determine how big or small the iceberg is. Similarly, outsiders only see a small portion of a business or organization, and they cannot or at least should not use the little piece of information to judge the organizational operations. This is because they do not know half the story of what goes on within the organization. People should always remember that large detail amounts and other essential information and businesses are kept underlying by the company in question. The iceberg effect is the visible aspect of the multiple costs that may arise from purchasing. However, below the water surface, other costs are likely to arise from the purchase decisions made by an organization. Organizations need to expect what they cannot see and be aware of their impacts.

Perception versus Reality:

There is no perception without reality because it has a close relationship with logistics. For instance, when there is a perception by the stakeholders to deliver quality services and goods to their consumers, they must get to understand and know their customers well (Nilsson & Gammelgaard, 2012). They should not assume that all customers are the same as humans and that customer needs vary from one to the other. Employees and managers must work extra hard and manage stakeholder perception. They can only make it a reality by providing their customers with what they need and what the company promised. In logistics, one can look at reality and perception differently. In this case, a stakeholder may demand various things to be done and happen in a particular way. However, the request may be unrealistic to both the managers and employees. In some cases, the workload may be heavy compared to what they are used to doing. In reality, this team may only accomplish an average of what they usually do, and the work may be substandard instead of quality work. Or, if they fail to communicate with one another on the assigned tasks effectively, managers may not properly delegate the work, resulting in overwhelming workers.

Before making any decisions or requesting demands from managers and employees, stakeholders should look at the request and compare the perception and reality (Oberseder et al., 2013). Additionally, they should consider the customer’s needs and wants. Delegating or asking employees to do tasks that overwhelm them or are above their usual duties may deliver poor quality work. This may further result in minimal customer satisfaction. The concept of perception vs. reality impacts stakeholder interaction because assigning tasks that a team cannot deliver may impact customer services. There is no business without customers, and when customers are not satisfied, they are likely to look for alternatives putting the business in a crisis.

Comparison of the Iceberg Effect and Perception versus Reality Principles

The iceberg effect and perception versus reality are essential aspects of an organization. The two approaches look deeper into what goes on in the organization beyond what people see. They guide and educate employees, stakeholders, and managers that their actions have consequences and that before taking any action, they must delegate effectively to be accountable for all the actions. The iceberg effect, for instance, talks about how most people do not understand the operations of an organization. This is because they only see a part of what goes on, and yet there are millions of other factors that ensure the smooth running of operations. When making purchase decisions, the iceberg effect may help an employee critically think about his decisions because the purchases he makes have additional consequences that he has to deal with after the purchase. The two go hand in hand when looking at perception versus reality, and perception cannot exist without reality. An employee recommending anything related to purchasing should consider both reality and perception. For instance, if an employee wants to spend 2000 dollars on a purchase, they should consider factors like the profit they are likely to make from it and how it may impact the company’s operations. For these reasons, it may be essential for a company to consider these two approaches before making any critical decision.

References

Bojanic, B., Miletic, B., & Kondic, Z. (2016). COST OPTIMISATION OF SPARE PARTS INVENTORY IN TECHNICAL SYSTEMS MAINTENANCE PROCESSES. Economic and Social Development: Book of Proceedings, 224. https://www.researchgate.net/profile/Mihaela-Braut-Filipovic/publication/311650523_Alternative_investment_funds_and_their_role_in_portfolio_companies_-_state_of_art_in_Croatian_law_and_practice/links/585261b508ae7d33e01a7f2c/Alternative-investment-funds-and-their-role-in-portfolio-companies-state-of-art-in-Croatian-law-and-practice.pdf#page=235

McKinnell, J. A., Miller, L. G., Singh, R. D., Gussin, G., Kleinman, K., Mendez, J., … & Huang, S. S. (2020). High prevalence of multidrug-resistant organism colonization in 28 nursing homes: An “Iceberg effect”. Journal of the American Medical Directors Association, 21(12), 1937-1943. https://www.sciencedirect.com/science/article/abs/pii/S1525861020303261

Nilsson, F., & Gammelgaard, B. (2012). Moving beyond the systems approach in SCM and logistics research. International Journal of Physical Distribution & Logistics Management. https://www.emerald.com/insight/content/doi/10.1108/09600031211269749/full/html?casa_token=JJ3swh-8w1kAAAAA:q8kUl8RP-Of-gVH_esD1m-qOaH369L6HaXq0wccEM96D2Ef9E_bX7Ql45mgBst7Pg68h9M39eQBc-UPu2BS1PhQYRqWI3a62R_e2eTUj8AFAQVLIdFJC4g

Öberseder, M., Schlegelmilch, B. B., & Murphy, P. E. (2013). CSR practices and consumer perceptions. Journal of Business Research, 66(10), 1839-1851. https://www.sciencedirect.com/science/article/abs/pii/S0148296313000295

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