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Customer Service

Customer Service: The Logistics/Marketing Interface

Customer service is often the key link between logistics and marketing. Examine the traditional logistics- marketing interface in Figure

The Traditional Logistics/Marketing Interface

Customer Service: The Logistics/Marketing Interface

Defining customer service In terms of levels of product In terms of types of customer support/service In terms of levels of involvement In terms of complexity of customer service

Customer Service: The Logistics/Marketing Interface

Elements of Customer Service Time Dependability Cycle time Safe delivery Correct orders Communications Convenience

Customer Service: Performance Measures



% availability in base units Speed and consistency Response time to special requests Speed, accuracy, and message detail of response Response and recovery time requirements Response time, quality of response

Orders received on time Orders received complete Orders received damage free Orders filled accurately Orders billed accurately

Customer Service: Implementation of Standards

Set standards at realistic levels. Quality levels set below 100% can be problematic. Consult customers on policies and standards. Communicate standards to customers. Measure, monitor, and control customer service standards.

Customer Service: Overview

If the basics of customer service are not in place, nothing else matters. Customers may define service differently. All customer accounts are not the same. Relationships are not one dimensional. Partnerships and added value can lock up customers.

Customer Service Issues


Four possible outcomes from a stockout Customers wait Back orders Lost sales Lost customers


Outsourcing involves the transfer or subcontracting of the management and/or dayto-day execution of an entire business function to an external service provider Advantages

Allows to focus the resources on their core business Acquire technology easily from the vendors Save time & money while improving efficiencies Improves the services level to their employees Reduces overall costs over the longer term

3 PL and 4 PLs

3 PLs have led the way in logistics outsourcing They provide for forwarding, trucking and warehousing A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions A good 4PL has a better understanding of the complexity of the customers requirements