Abstract- The paper presents the philosophyof Military Logistics Demand Chain Management Model (MLDCMM) orientedcustomer value creation. Firstly, authors review the definitions of customervalue and Demand Chain Management（DCM）, set forth theory of demand pull military logistics management.Secondly, based on the statusanalysisof current military logistics management, the paperformalizesthe proceduresof military logistics management creating customer value. Finally, thepaper establishes military logistics demand chain management mode orientedcustomer value creation and makes adiscussion. In order to maximizemilitary customers’ demand value and improve logistics support efficiency and effectiveness,DCM should be implemented in military logistics system. It should not only provide real materials meeting military customers’current demand, but also exceed their current demand guide and identify military customers’ potential demand and provide corresponding servicesupport.
Index Terms- Military Logistics, Customer Value, Demand Chain Management,Model Framework.
I. Introduction
What is the vision and mission of military logisticssystem? And why does it have existed in modern logistics system all the while? Thinking about thesequestions will remind us ofthe word – value. Militarylogistics is a service system creating both military and economic demand valuefor military customers. Military logistics system willnot exist ifit could not create any value. Identifyingcustomers’ requirementsand responding it in real-time is theprecondition to create value. On the powerful push of new military revolution and high-techwar logistics requirement, military logistics system has been transformedwidely and profoundly. Confrontedwith the new situation to be readiness for military operations, it is necessary to transform militarylogistics system oriented demand pull and achievelogistics support based on effectiveness by substitutingdynamic management for pre-planning management, which is not only determinedwhat kind of core logistics capabilities should be build, but also determinedhow to build and develop logistics support capabilities. In
II. LITERATURE REVIEW
2.1 Customer value & demand chain management
As for customer value, there is no consensus ofunderstandingfor it.Different scholars have given different definitions for it. Kotler Philip(1994) put forward the conception of customer delivered value [1]. Besanko(1996) made an analysis for consumer surplus [2]. Woodruff（1997）thought that customer value is customers’perceived preference ofproduct purchased to their buying intention [3]. Anderson and Narus consideredthat customer value is “net benefits” of gained value from purchased productminus cost that they paidout [4]. Though there are difference understandings for customer value, theyall agreed that customer value is customer perceived value, which is thebalance between perceived benefits and perceived sacrifices. In fact, customervalue is tied up to customers. Creating value for customers denotes that firms could grasp customers’demand value and customers identifywith the products or servicesprovided by firms.