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Customer Service

 Importance of Customer Service

3. Customer service level measures effectiveness
of integrated logistics
4. Improved Customer service makes business
5. Makes customers loyal, partnerships and added
value can “lock up” the customers
6. Provides edge in competitive business
 Seven R rule: product, quantity, condition,
place, time, customer, cost
8. Above are components of customer service
9. Deliver value to customer 1
3. Provide edge in competition
4. Any disruption causes breakdown of customer
 Perfect order
 Objectives of Customer Service
 Delivering 100% perfect orders
 Creating competitive value by delivering seven
R value to customers
 Three levels of customer service
 Customer service as an activity-what is to be
done to achieve customer service ?
 Customer service as a performance measure-
how to measure customer service ?
 Customer service as a philosophy-how
customer service is visualized?
 Factors/elements of customer service
3. Product availability
4. Order cycle time
5. Dependability: Lead time, Safe delivery,
Correct orders
6. Communications
 Relationships are not one dimensional
5. Convenience/Flexibility
 Customer’s expectation of service differs from
case to case
 Customers grouping should be done to
recognize varied needs
 All customer accounts [profitability] are not
Categorization of Customer Service Elements
 Pre-transaction Elements
 Customer service policy
 Organizational structure for customer service
 System flexibility
 Management services

Transaction Elements
Minimize stock-out
Give order information
Perform elements of order cycle
Expedite shipments
Minimize transshipment
Maintain system accuracy
Meet order convenience
Do product substitution to maintain service level

Post-transaction Elements
Installation, warranty, repairs, alterations, parts
Product tracing
Customer claims, complaints, returns
Temporary replacement of products
Customer service strategies
Customer audit to ascertain how customers
define their expectation – shortest lead-time?
Consistent lead-time?
‘A’ ‘B’ C’ of customers and identify salient
features of customer service
Decide degree of customization of service
The order cycle system

Order Order
transmittal processing


Order Order
shipment preparation