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

Customer value in logistics has four elements. Quality, service, cost and time. The Iceberg effect refers to the fact that what one sees is not the whole picture most of the time. There is more under the surface. It is coined from the story of the titanic and how an iceberg sank it. The iceberg effect illustrates a factor of judgement in that it is essential to first look at everything before passing judgment because what one sees does not necessarily mean it is what it is. Customer value can be achieved through the four elements of logistics, but that has an impact on the variables of the logistical services put forward towards customer satisfaction. The customer can only see the quality and the timely delivery of their products, but they do not have an idea of what goes on in the company to ensure that the products are delivered in good time.

The iceberg effect in business refers to the hidden factors that cannot be seen and are often used in risk management. In business, one must ensure they protect themselves to avoid incurring losses and thus while making the preparations to ensure that the customers receive their quality goods and in good time, the supplier also needs to ensure that they put the costs of delivering in good time in the cost for the customer (Liao & Chao, 2019). However, these costs are hidden, and thus, the customer does not notice them, thus protecting the company from any risks. The Iceberg effect is an illustration of a factor of judgment as it shows how people view things from the surface, but they do not know there is more that goes on below the surface. For example, if a company is doing well, people will only see the visible parts, but they do not know the kind of work put forward to ensure the company keeps performing.

Perception versus Reality

Perception refers to the way of thinking of an individual. It can be defined by the way an individual thinks, and thinking patterns differ from one individual to the next due to different factors. Reality, on the other hand, reality refers to the actual state of something. For example, one might think that it does not take much to have the goods delivered, but in reality, a lot of work goes into a good being delivered to the consumer. In logistics, there are different stakeholders. The shipper, the receiver, the carrier, the government and the consumer. In logistics, these people have to all work together to ensure the final product reaches the consumer. The perception of the stakeholders in logistics can be different from reality. For example, they could expect goods to be moved at a certain speed that is unrealistic to the employees and the managers.

The stakeholders’ perception can sometimes be different from reality, thus impacting the relationship between the stakeholders and the employees and managers in a company. A consumer can, for instance, not have an idea of how goods are delivered and the amount of work it takes to ensure quality goods are delivered. This might drive them to give the company a negat8ve rating despite the company doing everything right (Prasad, 2021). This is an example of the difference between perception and reality. In this case, the consumer thinks that a product has been delayed, but in reality, the employees of the company have done everything in their power to ensure that the product is delivered in good time, and in reality, the product was not delayed. It arrived at the right time.

The iceberg effect and perception versus reality are related concepts as they both address the same issue. They address how people view things versus reality. In the iceberg effect, the reality of things is not what one sees on the surface, and there is more to the product than meets the eye. In perception versus reality, what one thinks is not always a fact. This means that there are situations where one can think one thing but the reality is different (Stankevich, 2021). These two concepts can aid an employee in guiding a customer on what to buy. They can use the iceberg effect to show the consumer that product A is better than product B because there is more to product A than product B. they can guide the consumer by showing them the advantages of product A that are not visible and how this product is better if one looks beyond the surface and sees what is under the surface.

For example, if an employee is selling two cars and the first car looks beautiful on the outside, but its engine power is not good. However, there is another car that does not look good on the outside but has better engine power. The employee can use perception versus reality and the iceberg effect to explain that the first car only looks good on the outside. However, the engine is not as powerful. They can also tell them that what they see is not always a fact. Just because the car is beautiful on the inside does not make it beautiful, and they should look beyond the surface before they make a decision.

References

Liao, C. J., & Cho, H. B. (2019). Iceberg Theory-based Interview Simulation System of Mixed Reality. Review of Integrative Business and Economics Research, 8(3), 61.

Prasad, N. R. (2021). Perception and Reality. In Statistical and Fuzzy Approaches to Data Processing, with Applications to Econometrics and Other Areas (pp. 193-218). Springer, Cham.

Stankevich, A. (2017). Explaining the consumer decision-making process: critical literature review. Journal of international business research and marketing, 2(6), 7-14.