Download - Customer service related to L&SCM
![Page 1: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/1.jpg)
“CUSTOMER SERVICE”
Presented By:- Swapnil Pawar (13253) Prasad Bhoir (13255) Pritesh Mhaiskar (13250)
1
![Page 2: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/2.jpg)
Flow of presentation
• Introduction
• Nature and Concept
• Features
• Components
• Customer service costs
• Gap analysis
• Measuring service
• Customer service strategic management
• Impediments in the customer service strategy 2
![Page 3: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/3.jpg)
Introduction
• Customer – delivery destination• Internal customers – distribution warehouse is an internal
customer for last production point.• External customer – different organization or individual
which takes the ownership, undertake risks or adds value by making goods available at the place of final goods e.g. C & F agents, wholesalers, distributors, dealers etc.
• Customer service – process between buyer, seller, and a third party.
3
![Page 4: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/4.jpg)
Nature and Concept
> Francis G. Tucker Customer service is generally presumed to be the means
by which companies attempt to differentiate their product, keep customer loyal, increase sales and improve profits.
> Jamier L. Scott Customer service is a series of activities designed to
enhance the level of customer satisfaction.
4
![Page 5: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/5.jpg)
Elements of customer service
Pre-Transaction Elements
Transaction Elements
Post-Transaction Elements
5
![Page 6: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/6.jpg)
Pre-Transaction Elements
• Written statement of policy
• Statement in hands of customer
• Organizational structure
• System flexibility
• Technical services
6
![Page 7: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/7.jpg)
Transaction Elements
• Stock out level
• Ability to back-order
• Elements of order cycle
• Time
• System accuracy
• Order conveniences
• Product substitution
7
![Page 8: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/8.jpg)
Post-Transaction Elements
• Installation, warranty, alteration, repairs, parts
• Product tracking
• Customer claims, complaints
• Product packaging
• Temporary replacement of product during repairs
8
![Page 9: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/9.jpg)
Features
• Strategic process for providing value-added services to the customers
• Ensures trade-offs between cost and service
• Keeps customer happy and loyal
• Brings harmonious relationship between supply chain members
• Starts with order entry and ends with delivery of goods to customers
• Brings about competitive advantage to the market place, increases sales, and improves profits.
9
![Page 10: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/10.jpg)
Components
Three types of components :-
1.Strategic components
2. Logistical components
3. Non-logistical components
10
![Page 11: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/11.jpg)
Strategic components
1. To give full assurance for the best ROI,ROS, ROME.
2. Firms commitment for long run association
3. Continuous improvement in the quality of customer service
11
![Page 12: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/12.jpg)
Logistical components
1. Availability of products
2. to offer fixed replenishment cycle time and their efforts to reduce it
3. Ensures zero defect delivery of products by the firm
4. Point-to-point information
5. Consistency 12
![Page 13: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/13.jpg)
Non-Logistical components
1. Provide financial support to their customers, especially for infrastructural development
2. making a provision for credit facility to motivate the customer
3. Arranging training programs for customers and their technical know-how of the product
4. In warranty supported products, certain discretionary power should be assigned to the customers
13
![Page 14: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/14.jpg)
Customer service costs 1. Inventory carrying cost 2. Cost incurred in reduction of replenishment cycle
time. 3. Cost incurred in reverse logistic system in case of
defective goods. 4.Cost involved in continuous appraisal of the system. 5. Fixed costs in development of service consistency.
14
![Page 15: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/15.jpg)
Service Effect on Sales
Examples:-• International Minerals & chemicals Co. , after
instituting an extensive customer service program, reported a 20% increase in sales and a 21% increase in earnings.
• A sigma IT solutions, its CRM team was able to reduce the turnaround time for products from 15 days to 7 days. Also its revenues grew by 11 %. 15
![Page 16: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/16.jpg)
Customer Service Complaints
16
![Page 17: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/17.jpg)
Gap analysis of customer service• Gap is function of
“ Expectation- Performance”
• Expectations of customers and performance of company
17
![Page 18: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/18.jpg)
Gaps• Market information gap: Gap due to company’s
inaccurate knowledge of customer expectations.
Customer’s service
expectations
Company’sUnderstanding of
expectations
18
![Page 19: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/19.jpg)
• Service performance gap: due to lack of suitable internal support systems that enable the employees to deliver service standards.
Company’sUnderstandingOf customerexpectations
Company’sService standard
19
![Page 20: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/20.jpg)
• Internal communication gap: Inconsistencies between what customers are told the service will be like and the actual service performance of the company.
• Inconsistencies Before sales-after sales
20
![Page 21: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/21.jpg)
Gap analysis
21
![Page 22: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/22.jpg)
Measuring service• Order Entry
• Minimum, maximum, and average time for order handling. • Percent of orders handled within target times.
• Order Documentation Accuracy• Percent of order documents with errors.
• Transportation• Percent of deliveries on time• Percent of orders delivered by customer request date.• Damage and loss claims as a percentage of freight costs.
• Inventory And Product Availability• Stock out Percentage.• Percentage of orders filled complete.• Order fill rate and weighted average fill rate.
22
![Page 23: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/23.jpg)
A model for customer service management..
23
![Page 24: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/24.jpg)
Impediments in to an effective customer service strategy
• Misdefining customer service
• Overlooking customer profitability
• Failing of research
• Misusing customer service as a sales incentive
• Misreading the seller’s market24
![Page 25: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/25.jpg)
25
![Page 26: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/26.jpg)
26
![Page 27: Customer service related to L&SCM](https://reader036.vdocuments.us/reader036/viewer/2022062511/54bd83794a795943698b46fb/html5/thumbnails/27.jpg)
27