Standardization Is the Process of Developing and Implementing Technical Support

First, standardization is the process of developing and implementing technical support to achieve same features or quality. It simply can lower the cost and increase the quality. Standardization is so important in supply chain management because without the standardization of process, there is higher possibility of accident in supply chain cycle. In result, it will increase the cost, lower the quality, and delay the delivery.

My Coke Reward is an example of switching cost because it actually makes the customer reluctant to switch to competing companies. If a customer buys a product and sign up for My Coke Reward, he or she will automatically be more willing to buy another Coca Cola over Pepsi because the more points on My Coke Reward means more chance of getting prizes. This system is kind of similar to that of credit cards company reward system to make the customer use the credit cards more.

To sign up for My Coke Reward, people need to provide their email address, gender, birth date, address, preferences in prizes, and mobile number. It also asks to sign up for mobile news settler or email news settler which is an opportunity to advertise and promote their product to customers with almost no costs. These data which is provided by customers can be transformed to business intelligence by using software. For example, Coca Cola Company can identify which product is selling more in which area with the provided address and code numbers of product. Then, the company can plan a promotion for products that is not selling enough in that area. Another example is to provide better customer service and support with the settlers’ provided phone number and email. They can do a survey on either certain products or overall quality. With the preferences in prizes, the company can also plan future prizes accordingly to attract more potential royal customers.

Both Coca Cola’s Facebook and Pepsi’s Facebook allow users to communicate with the company