{"id":2771,"date":"2010-06-30T04:11:04","date_gmt":"2010-06-30T11:11:04","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=2771"},"modified":"2014-10-18T12:34:43","modified_gmt":"2014-10-18T17:34:43","slug":"lean-consumption-provide-exactly-what-the-customer-wants","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/lean-consumption-provide-exactly-what-the-customer-wants\/2771\/","title":{"rendered":"Lean Services: Provide Exactly What the Customer Wants"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>The third principle in Lean Services (or Lean for Service Operations is <sup class='footnote'><a href='#fn-2771-1' id='fnref-2771-1' onclick='return fdfootnote_show(2771)'>1<\/a><\/sup>:\u00a0Provide exactly what the customer wants.<\/p>\n\n<p>This principle rests on the notion of Pull. Rather than relying on large, expensive, centralized forecasting systems (which are almost always wrong), Lean for Service Operations looks at the situation with a rapid and frequent replenishment mindset. This approach also makes judgment against ordering large quantities of inventory, but instead relies on a total systems approach beginning with the customer pull and replenishment upstream.<\/p>\n<p>In Womack and Jones&#8217; words, sharing an experience from Tesco:<\/p>\n<blockquote><p>How does Tesco do it? By replenishing every\u00a0store continuously, over a 24-hour day, to eliminate\u00a0the need to hold stock either at the back\u00a0of the store (as does Wal-Mart) or in high-bay\u00a0storage (like Home Depot). Tesco reorders\u00a0from key suppliers that produce\u201din a matter\u00a0of hours\u201ditems that have just been purchased.<\/p>\n<p>What&#8217;s more, Tesco picks up directly\u00a0from suppliers&#8217; shipping docks at precise times\u00a0and takes the goods to regional distribution\u00a0centers where fresh products and fast-moving\u00a0items are cross docked onto vehicles delivering\u00a0to stores. In a further lean innovation, Tesco\u00a0satisfies Web-shopping orders by having store\u00a0personnel fulfill orders from the shelves during\u00a0lulls. This process has reduced personnel costs,\u00a0avoided the cost of separate warehouses for\u00a0Web orders, and made Tesco the world&#8217;s largest\u00a0Internet grocer.<\/p>\n<p>Lean techniques have helped Tesco to grow\u00a0its share rapidly and become the UK&#8217;s market\u00a0leader in groceries, fueling its global expansion\u00a0in Eastern Europe and East Asia as well. They\u00a0have also allowed the grocer to increase customer satisfaction and loyalty by giving shoppers\u00a0what they want (and, as we shall see, by\u00a0providing it where and when they want it)\u201dwithout wasting their time.<\/p><\/blockquote>\n<p>This approach requires there to be a very coordinated and tight supply chain &#8211; both in communication, expectations, and also in geography, with the over-riding principle: produce closest to the customer.<\/p>\n<p>Without doing so, this approach goes against the outsourcing mindset, chasing low cost producers. The Lean mindset is in favor of producing closest to the customer instead.<\/p>\n<div class='footnotes' id='footnotes-2771'>\n<div class='footnotedivider'><\/div>\n<ol>\n<li id='fn-2771-1'> the principles of Lean for Service Operations are: Solve the customer&#8217;s problem completely by insuring that all the goods and services work, and work together, Don&#8217;t waste the customer&#8217;s time, Provide exactly what the customer wants, Provide what&#8217;s wanted exactly where it&#8217;s wanted, Provide what&#8217;s wanted where it&#8217;s wanted exactly when it&#8217;s wanted, Continually aggregate solutions to reduce the customer&#8217;s time and hassle. <span class='footnotereverse'><a href='#fnref-2771-1'>&#8617;<\/a><\/span><\/li>\n<\/ol>\n<\/div>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>The third principle in Lean Services (or Lean for Service Operations is 1:\u00a0Provide exactly what the customer wants. This principle rests on the notion of Pull. Rather than relying on large, expensive, centralized forecasting systems (which are almost always wrong), Lean for Service Operations looks at the situation with a rapid and frequent replenishment mindset. [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":9867,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[613],"tags":[322],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lean Services: Provide Exactly What the Customer Wants<\/title>\n<meta name=\"description\" content=\"lean services favors &quot;pull&quot; rather than batching service or inventory. lean thinking, lean consumption.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lean Services: Provide Exactly What the Customer Wants\" \/>\n<meta property=\"og:description\" content=\"lean services favors &quot;pull&quot; 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