Question: As a logistics manager, report on positive and negative aspects of implementing a service differentiation strategy (The 80/20 rule). The following are some facts gathered:

As a logistics manager, report on positive and negative aspects of implementing a service differentiation strategy (The 80/20 rule).

The following are some facts gathered: DRC is wholly owned company having operations in 20 countries. DRC has more than 100 facilities in these 20 countries and serving to 55 countries from these locations. DRC has 10 business units where they have 12,000 employees partners. 10% of the total customer base (130 customers) generates 80% of the revenue which is principle of Pareto analysis. 90% of rest of the customers generate only 20% of the revenue. In Melbournes east, which is the largest producer of the revenue for the company, 7.2% of the customers generates 80% of the revenue.

Do you agree with case study proposal to vary service levels (e.g. within two hours, same day or next day) to different types of customers?

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