Summary: Since the early ‘90s, much emphasis has been placed on simplifying the processes relating to production, however the article “Lean Consumption”, authored by James P. Womack and Daniel T. Jones, addresses the idea of creating efficiencies by improving the experience of customers in how they consume a product or service – ensuring they get what they want, when they want it, and in a place that suits them. Lean consumption has the potential to improve customer loyalty by removing the pain points and removing reasons for them to desert, but also deliver cost savings to companies by streamlining processes and resources. Achieving lean consumption requires a company to fully understand and eliminate the underlying issues that cause customer complaint. It summarises the key principles as: • Solve the …show more content…
And to achieve this, it requires an understanding of the true cost of delivering that product or service, including assigning a value to the actions required of the customer to consume said product or service. Application of ideas to Holden New Zealand: I see significant opportunities to adapt the principles of lean consumption within Holden New Zealand. Our business incurs excessive costs in storing vehicles to ensure we can deliver to a customer’s immediate requirement. A large driver of this immediacy is that our sales promotion process rewards customers that make a decision to buy now, or certainly within any given month, rather than planning ahead. Addressing this issue would require change in a number of areas: • Better understanding the individual customer lifecycle • Improving customer relationships through the customer lifecycle • Running sales promotions that reward customer that order into the supply pipe • Adapting Dealer remuneration to reward Dealers that anticipate future