Customer Service and Service-driven LogisticsWhat is customer service??Components of customer service+Servicelevelsvscosts+Service-driven logistics systemSetCSpriorities
Customer Service and Servicedriven Logistics What is customer service? Components of customer service Service levels vs costs Service-driven logistics system Set CS priorities
Service is ..Smiling to everyoneExcellent in everything you doReaching out to every customer with hospitalityViewing every customer as specialInviting your customer to return Creating a warm atmosphereEye contact that shows we care
Service is . Smiling to everyone Excellent in everything you do Reaching out to every customer with hospitality Viewing every customer as special Inviting your customer to return Creating a warm atmosphere Eye contact that shows we care
Who is the customer??Can you suggest the customer groupsfor a logistics operator?
Who is the customer? Can you suggest the customer groups for a logistics operator? ◼ Consumer / end user ◼ Customers of the company ◼ Other functions of the company such as sales and marketing ◼ Other sections of logistics department
What is customer service?+CS is the collection of activities performed ina way that keeps customers happy andcreates in the customers' mind the perceptionof an organization that is easy todo businessWith.It is an excellent competitive weapon and hasanadvantage over price competition
What is customer service? CS is the collection of activities performed in a way that keeps customers happy and creates in the customers’ mind the perception of an organization that is easy to do business with. It is an excellent competitive weapon and has an advantage over price competition
CS in logistics? Logistics is part of the supply chain thatplans, implements, and controls theefficient, effective flow and storage ofgoods, services and related information.from the point of origin to the point ofconsumption in order to meet customerrequirements.--Council of Logistics Management
CS in logistics Logistics is part of the supply chain that plans, implements, and controls the efficient, effective flow and storage of goods, services and related information, from the point of origin to the point of consumption in order to meet customer requirements. -Council of Logistics Management
The ultimate purpose oflogisticsLogistics is to deliver- (the right product)- to the right place- at the right time- in the right quantity- at the right quality- at the right price (cost)-for the right customer
The ultimate purpose of logistics Logistics is to deliver - (the right product) - to the right place - at the right time - in the right quantity - at the right quality - at the right price (cost) - for the right customer
Customer service? The role of CS is to provide “time & spaceutility’ in the transfer of goods and servicesbetween buyer and seller.? I.e., there is no value in the product orservice until it is in the hands of customers orconsumers+Logistics is to make products or services“available". Supply chain thinking is strengthening thelinks between vendors and their customers
Customer service The role of CS is to provide “time & space utility” in the transfer of goods and services between buyer and seller. I.e., there is no value in the product or service until it is in the hands of customers or consumers. Logistics is to make products or services “available”. Supply chain thinking is strengthening the links between vendors and their customers
Components of CSPre-transaction elements1. Written CS policy; 2. organization structureTransaction elements1. Order cycle time; 2. order fill rate3.Inventory availability;4.order status informationPost-transaction elements1.Availability of spares; 2. product warranty3.Customer complaints
Components of CS Pre-transaction elements 1. Written CS policy; 2. organization structure Transaction elements 1. Order cycle time; 2. order fill rate 3. Inventory availability; 4. order status information Post-transaction elements 1. Availability of spares; 2. product warranty 3. Customer complaints
Basic & value-added services? No company provides all its customers withthesamelevelof serviceDefinition of basic and value-added services-P52
Basic & value-added services No company provides all its customers with the same level of service. Definition of basic and value-added services – P52
Levels of CS+ The trade-off between level of CS and costsCost ofservice105.532.5Service level (%)907080100
Levels of CS The trade-off between level of CS and costs Cost of service 70 80 90 100 Service level (%) 10 5.5 3 2.5