The Consumption Case
Essay by numohame • September 23, 2014 • Essay • 345 Words (2 Pages) • 851 Views
Printed paper, used for printing documents related to work or personal use
Use it every other day,
The consumption experience is boring
What type of relationship does the customer have with the product/service? She needs it.
How long has the relationship been going on? 20 years,
How has it evolved and changed over time? It hasn't,
What terms best describe the relationship? Dependency
What kind of things have gone wrong in the relationship - Quality lapses
What positive surprises have occurred - Welcome communication
Book-In-Time is a digital low-cost, order-to-fulfillment system for the on-demand printing of books. Xerox's unique technology had been optimized for custom lengths of as low as one but could economically handle up to 1,200 or more. At run lengths of less than 25 books, other printing methods would have to incur a minimum cost of $5,000 or so, whereas Book-In-Time could conceivably deliver at a cost of only $6.90 per book. BIT creates value in the distribution chain in two distinct cost saving ways. First because BIT is a just in time system where publishers can customize the number of book runs they would like to establish. This added flexibility will help reduce the cost of inventory and returned books. According to the case it states that of the publishers selling price 25% of the cost factored in was the cost of books returned.
BIT would dramatically reduce or eliminated this cost. Another way BIT creates a cost value in the distribution chain is that it enables books that were out of print or book with low demand to be printed. Before book in time cost per book was a function of print run size. For large run sizes the per unit costs were low because there was a greater quantity of books created, however for short runs the fixed cost were spread over a smaller number of books, raising the per-unit cost. Many publishers were reluctant in publishing low demand books because of the increased cost, however BIT can allow the supplier to match the supply with the demand without sacrificing any cost.
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