chapter 3 : “customer accommodation part one. customer service: where logistics and marketing meet...
TRANSCRIPT
Chapter 3 :“Customer Accommodation
Part One
Customer Service: Where Logistics and Marketing Meet
• Customer service objectives dictate logistics design.
• Customer service: a process for providing significant value-added benefits to the supply chain in a cost-effective way.
Customer Service: Where Logistics and Marketing Meet
• Customer service objectives dictate logistics design.
• Customer service: a process for providing significant value-added benefits to the supply chain in a cost-effective way.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Note: the reference to the text is regarding a previous book in this class.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written policy
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written Policy--Based on customer needs.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written Policy--Based on customer needs.--Define Standards.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written Policy--Based on customer needs.--Define Standards.--Determine measure- ment.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written Policy--Based on customer needs.--Define Standards.--Determine measure- ment.
County of Nottinghamshire,United Kingdom
We are committed to providing a high standard of customer service to all residents of Nottinghamshire.We have a Customer Service Code of Practice and Standards for our staff which gives a promise to you on what you can expect when you make contact with us.We aim to answer your telephone call within four rings.
We aim to respond to written correspondence within ten working days
If we feel that your query requires more detailed research or translation we will acknowledge your letter within five working days and respond fully to you within 20 working days
When you visit us, we will not keep you waiting for more than 20 minutes. County of Nottinghamshire,
United Kingdom
We are committed to providing a high standard of customer service to all residents of Nottinghamshire.We have a Customer Service Code of Practice and Standards for our staff which gives a promise to you on what you can expect when you make contact with us.We aim to answer your telephone call within four rings.
We aim to respond to written correspondence within ten working days
If we feel that your query requires more detailed research or translation we will acknowledge your letter within five working days and respond fully to you within 20 working days
When you visit us, we will not keep you waiting for more than 20 minutes. County of Nottinghamshire,
United Kingdom
We are committed to providing a high standard of customer service to all residents of Nottinghamshire.We have a Customer Service Code of Practice and Standards for our staff which gives a promise to you on what you can expect when you make contact with us.We aim to answer your telephone call within four rings.
We aim to respond to written correspondence within ten working days
If we feel that your query requires more detailed research or translation we will acknowledge your letter within five working days and respond fully to you within 20 working days
When you visit us, we will not keep you waiting for more than 20 minutes. County of Nottinghamshire,
United Kingdom
We are committed to providing a high standard of customer service to all residents of Nottinghamshire.We have a Customer Service Code of Practice and Standards for our staff which gives a promise to you on what you can expect when you make contact with us.We aim to answer your telephone call within four rings.
We aim to respond to written correspondence within ten working days.
If we feel that your query requires more detailed research or translation we will acknowledge your letter within five working days and respond fully to you within 20 working days
When you visit us, we will not keep you waiting for more than 20 minutes. County of Nottinghamshire,
United Kingdom
We are committed to providing a high standard of customer service to all residents of Nottinghamshire.We have a Customer Service Code of Practice and Standards for our staff which gives a promise to you on what you can expect when you make contact with us.We aim to answer your telephone call within four rings.
We aim to respond to written correspondence within ten working days
If we feel that your query requires more detailed research or translation we will acknowledge your letter within five working days and respond fully to you within 20 working days.
When you visit us, we will not keep you waiting for more than 20 minutes.
County of Nottinghamshire,United Kingdom
We are committed to providing a high standard of customer service to all residents of Nottinghamshire.We have a Customer Service Code of Practice and Standards for our staff which gives a promise to you on what you can expect when you make contact with us.We aim to answer your telephone call within four rings.
We aim to respond to written correspondence within ten working days
If we feel that your query requires more detailed research or translation we will acknowledge your letter within five working days and respond fully to you within 20 working days
When you visit us, we will not keep you waiting for more than 20 minutes. County of Nottinghamshire,
United Kingdom
When dealing with us:You can expect us to be welcoming, courteous, fair and respectful.
We will always be helpful and responsive, keep you informed and communicate clearly with you at all times
We will let you know what we can provide, who to contact and how to get in touch
We will aim to provide good quality information that is suited to your individual needs.
County of Nottinghamshire,United Kingdom
In return, we ask you to help us achieve our standards by being courteous and respectful towards us and help us to help you by providing the information we need.
County of Nottinghamshire,United Kingdom
Timeliness. We will provide an official grain inspection and weighing certificate within one full business day after completing your inspection. In our regulatory role, we will respond to your concerns and work to ensure fairness and equity in the marketplace.
Grain Inspection, Packers and Stockyards Administration (GIPSA) of USDA
We aim to:Answer all telephone calls within 4 rings (10 seconds)
New Standard for 2002/2003
Our target for 2002/2003 85%
Tameside, United Kingdom
Respond to all service requests within three working days
Our target for 2001/2002
80%
Our success rate was 79%
Our target for 2002/2003
85%Tameside, United Kingdom
Provide trained staff who are polite and courteous
Our target for 2001/2002
40% Staff Customer Care Training
Our success rate was 41% (70 Staff)
Our target for 2002/2003
100% (170 Staff)
Tameside, United Kingdom
“Customer Accommodation”
End of Part One.
Go to Part Two.
Chapter 3 :“Customer Accommodation
Part Two
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written Policy--Based on customer needs.--Define Standards.--Determine measure- ment.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Written Policy--Based on customer needs.--Define Standards.--Determine measure- ment.--Implement.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Customer told policy.
Organization Structure.
System flexibility.
Management Services.
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
StockoutLevel
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stockout leveltradeoff:customer serviceversusinventory carrying costs.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Customer service:Having the productwhen the customerwants it.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Inventory carrying costs:
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Inventory carrying costs:
• Capital costs on inventory investment.
• Inventory service costs.
• Storage space costs.
• Inventory risk costs.
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
In most cases inventory carryingcosts prevent us from providingthe demanded product 100%of time.
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availabilityStock and Lambert “Strategic Logistics Management” (2001)
Note: the reference to the text is regarding a previous book in this class.
.
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability Increasing in-stock availability from 90%to 100%.
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability Increasing in-stock availability from 95%to 100%.
Doublesinventoryinvestment.
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Increasing in-stock availability from 95%to 100%.
Percentage in-stock availabilityStock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability Increasing in-stock availability from 95%to 100%.
Increasesinventoryinvestmentby 50%!
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
95%?
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
97%?
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
98%?
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
93%?
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
When there is a stockout…
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
When there is a stockout…
If the customer is NOT a consumer (customer is a wholesaleror retailer)…
Stock and Lambert “Strategic Logistics Management” (2001)
Relationship Between Customer Service and Inventory Investment
0
100
200
300
400
500
600
75 80 85 90 95 100
Inventory investment in $ thousands.
Percentage in-stock availability What level of customerwill provide competitivecustomer at reasonable cost?
When there is a stockout…
If the customer is NOT a consumer (customer is a wholesaleror retailer), the customer may haveinventory/safety stock that allows them to service their customers.
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service Tradeoff
• Minimizing logistical costs while meeting predetermined levels of customer service.
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Substitutemay be a wayto overcomestockout problemwithout increasinginventory.
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
Model of Consumer Reaction to a Repeated Stockout
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Customer
3Lower
4Other size
2Same
1Higher
Anotherstore
6Ask here
again
5Specialorder
Switch stores
?
Substitute?
Switch brand
?
Substitute?
Switch price
?
No
No
Yes
Yes
Yes
Yes
No
No
“Customer Accommodation”
End of Part Two.
Go to Part Three.
Chapter 3 :“Customer Accommodation
Part Three
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Order Information
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Order InformationGive customers goodinformation abouttheir order and your inventory
Give customers goodinformation abouttheir order and your inventory
Order Information
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Order InformationGive customers goodinformation abouttheir order and your inventory
Give customers goodinformation abouttheir order and your inventory
Order Information
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Order InformationGive customers goodinformation abouttheir order and your inventory
Give customers goodinformation abouttheir order and your inventory
Order Information
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Installation, warranty, alterations, repairs, parts
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Installation, warranty, alterations, repairs, parts
Some aspectsof reverselogistics
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Some aspectsof reverselogistics
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Stock and Lambert “Strategic Logistics Management” (2001)
Customer Service
Pretransaction Transaction PosttransactionWritten policy Stockout level Installation, warranty,
alterations, repairs, parts
Customer told policy Order information Product tracing
Organization structure Order cycle Customer claims, complaints, returns
System flexibility Expedited shipments Temporary replacement of products
Mgt. Services. Transshipment
System accuracy
Order convenience
Product substitution
Order Information
Give customers goodinformation abouttheir order and your inventory
Stock and Lambert “Strategic Logistics Management” (2001)
Measuring and Controlling Customer Service Performance
• Establish quantitative standards of performance for each service element.
• Measure actual performance for each service element.
• Analyze variance between actual service provided and standard.
• Take corrective action as needed to bring actual performance into line.
3-13
Customer Service Standards• Reflect the customer’s point of view.
• Provide an operational and objective measure of service performance.
• Provide management with cues for corrective action.
3-14
Gap Theory
Manager has customer service concept
Gap Theory
Manager has customer service concept
Employee learns manager’scustomer service concept.
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service conceptInaccurately
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service conceptInaccurately
There is nowa gap betweenmanager’s ideaand employee’sidea.
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service conceptInaccurately
Customer has a conceptof what they want in service.
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service conceptInaccurately
Customer has a conceptof what they want in service.
Customer’s idea of service is notthe same as employee’s. There is a gapbetween them.
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service conceptInaccurately
Customer has a conceptof what they want in service.
There may also be a gap betweencustomer’s ideaof service andmanager’s ideaof service.
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service concept
Customer has a conceptof what they want in service.
Manager mustdetermine customer’s ideaof service…
Gap Theory
Manager has customer service concept
Employee learns manager’sCustomer service concept
Customer has a conceptof what they want in service.
Manager mustdetermine customer’s ideaof service andcommunicateit to employeewho providesit for customer.
End of Part Three.
Go to Part Four.
Chapter Three“Customer Accommodation”
Part Four
“Forecasting”You will need to manually advance from
slide-to-slide on this presentation.
To follow are explanations of certain quantitative forecasting techniques
used to predict future sales.
Quantitative Methods
• Continuity extrapolation: incremental dollar or percentage increase is carried forward to the next year.
Quantitative Methods
• Continuity extrapolation: incremental dollar or percentage increase is carried forward to the next year.
Growth Maturity Decline
IntroductionProduct Life Cycle
Quantitative Methods (continued)
• Time series analysisSales = T x C x S x IWhere:T = trends or long-run changesC = cyclical changesS = seasonal variationsI = irregular or unexpected factors.
Gasoline demand
Time Series Analysis
Time--Johnson, Kurtz, Scheuing 1994 “Sales Management”
Gasoline demand
Time Series Analysis
Time
Cyclical changes
Cyclical changes (economy)
Cyclical changes
Seasonal variation (summer, winter)
Irregular or unexpected factors (political crisis)
--Johnson, Kurtz, Scheuing 1994 “Sales Management”
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast 1 4200 -- --
2 4410 -- --
3 4305 --
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
2 4410 -- --
3 4322 4305 --
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
2 4410 -- --
3 4322 4305 --
4 4366 --
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
2 4410 -- --
3 4322 4305 --
4 4106 4366 --
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
2 4410 -- --
3 4322 4305 --
4 4106 4366 --
5 4214
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
2 4410 -- --
3 4322 4305 --
4 4106 4366 --
5 4214 4260
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -- --
2 4410 -- --
3 4322 4305 --
4 4106 4366 --
5 4214 4260
Quantitative Methods (continued)
• Exponential smoothing:
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Alpha is any number between 0 and 1.
The higher the alpha, the more weight to recent sales.
Quantitative Methods (continued)
• Moving average
Year Sales 2-year 4-year
forecast forecast
1 4200 -
2 4410 -- --
3 4322 4305 --
4 4106 4366 --
5 4214 4260…higher alpha means later data has more influence or weight
All data contribute to forecast, but….
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha
=.2 .5 .8
1 4200 -- -- --
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha
=.2 .5 .8
1 4200 -- -- --
2 4200 4200 4200
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha
=.2 .5 .8
1 4200 -- -- --
2 4410 4200 4200 4200
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha .2 .5 .8
1 4200 -- -- --2 4410 4200 4200 4200
(.2)(4410) + (.8)(4200) = 4242
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha.2 .5 .8
1 4200 -- -- --2 4410 4200 4200 4200
(.5)(4410) + (.5)(4200) = 4305
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha.2 .5 .8
1 4200 -- -- --2 4410 4200 4200 4200
(.8)(4410) + (.2)(4200) = 4368
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha
.2 .5 .8
1 4200 -- -- --
2 4410 4200 4200 4200
3 4322 4242 4305 4368
(.2)(4322) + (.8)(4242) = 4258
(alpha)(this period sales) + (1-alpha)(this period forecast) = forecast for next period
Year Sales Alpha Alpha Alpha
=.2 .5 .8
1 4200 -- -- --
2 4410 4200 4200 4200
3 4322 4242 4305 4368
4 4106 4258 4314 4322
5 4311 4228 4210 4157
End of Program.