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Anusuya Sharma (Roll No. 4)

Neena Marhatta (Roll No.15)
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° aeskett: Customer Service in many firms is the speed
aeskett:
with which items ordered (by customer) can be made
available.´
° Recent Definition:
Definition: The entire process of filling the
customer¶s order. The process includes the reciept of
order, managing the payment, picking and packing
the goods, shipping the package, delivering the
package, providing service for end user and handling
the possible return of goods
° Kji & Kji:
Kji: Customer service when utilized
effectively, is a prime variable that can have a
significant impact on creating demand & retaining
customer loyalty
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°   !"

#
re--Transaction Elements: Establish a
re
good climate for good customer service
Transaction Elements: Directly result in
delivery of products to the customers
ost--Transaction Elements: represent the
ost
service needed to support the product in the field
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0ritten Customer Service olicy
Accessibility
Organizational Structure
System Flexibility
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Order Cycle Time
Inventory Availability
Order Fit Rate
Order Status Information
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Availability of spare parts
Call out time
roduct tracing/warranty
Customer Complaints, claims
 
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#
As per study of Krenn & Shycon, distribution, when
provides the proper level of service to meet customer
needs can lead directly to increased sales.
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lays a critical role in maintaining customer
patronage which leads to profits in long run



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Range of Transition
Range of Transition

Sales
Diminishing
Threshold Returns Decline

^ogistics customer service of a supplier to the best of its

competitors
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° eople don¶t buy products, they buy benefits

° Concept of Service surround

Service
Surround

Quality

Delivery ^ead time &

roduct
Core flexibility

Features
roduct
Delivery Reliability &

Technology
Consistency

Durability etc.

Single oint of Contact

Ease of doing business

After sales support
° ^ifetime Value of a Customer = Average
Transaction value x yearly frequency of
purchase x customer life expectancy
° Retained Customer more profitable than
new customers
° Retained Customers cost less to sell &
service
° Focus on ³Relationship Marketing´


  






° Means a system designed to meet defined service
goals & develop low cost logistics solutions.
° Sequence to be devised to develop ^ogistics
Strategies:
Identify customer service needs:

Service segments, research

Steps involved:
‡ Identify the key components of customer service.

‡ Establish their relative importance.

‡ Identify clusters of customers as per the similarity of
service preferences.
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Define customer service objectives

Aiming to achieve service excellence in a
consistent & cost effective way.

Concept of perfect order.

Design the logistics system

° Cost Benefit of Customer service
° Setting Customer Service riorities
areto rule for products,
Demand/volume--profitability matrix,
Demand/volume
areto rule for customers
° Setting Service Standards
° Service Elements for which Standards should be set:
set:
Order Cycle Time
Stock Availability
Order Size Constraints
Ordering Convenience
Frequency of Delivery
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Delivery Reliability
Documentation Quality
Claims rocedure
Order Completeness
Technical Support
Order status information
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Customer Service is the most powerful
element yet, the least well managed one
for an organization. Output of all logistics
activity is the customer service.
 
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° ^ogistics & Supply Chain Management By:
Martin Christopher
° ^ogistics Management by-
by- Donald J.
Bowersix, Donald J. Class
° Business ^ogistics/Supply chain Management
by-- Ronald a. Ballon
by