1 Definition of Logistics Customer
Service
2 Marketing and logistics customer
service trade-off model
3 Elements of Logistics Customer
Service
4 Strategies for Logistics Customer
Service:
Reactive techniques
Proactive techniques
5 The Service Quality Model
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GLOBAL LOGISTIC
MANAGEMENT
LECTURE 3: CUSTOMER SERVICE IN
LOGISTICS
Agenda
1 Definition of Logistics Customer
Service
2 Marketing and logistics customer
service trade-off model
3 Elements of Logistics Customer
Service
4 Strategies for Logistics Customer
Service:
Reactive techniques
Proactive techniques
5 The Service Quality Model
1 Definition of Logistics
Customer Service
Logistic Customer Service is a
process which takes place between
buyer, seller and third party. The
process results in a value added to
the product or service exchanged. The
value added is shared to all parties
involve in the transaction
Thus, Customer service is a process
for providing significant value-added
benefits to the supply chain in a cost
effective way.
2 Marketing and logistics
customer service trade-off model
2 Marketing and logistics
customer service trade-off model
Marketing objectives: allocate
resources to the marketing mix to
maximize the long run profitability of
the firm.
Logistics objectives: minimize total
costs given the customer service
objective where:
Total cost= transportation cost+
warehousing cost+ Order-processing
and information cost+ Lot quantity
costs+ Inventory carrying costs.
3 Elements of Logistics
Customer Service
Pre-transaction elements
Transaction elements
Post-transaction elements
Pre-transaction elements
Advice on non-availability
Quality of sales representatives
Regular calls by sales reps
Monitors customer stock levels
Consult on new product/package
development
Reviews product depth and breadth
regularly
Communicates target delivery dates
Transaction elements
Ordering convenience
Acknowledgement of order
Credit terms offered
Handling of queries
Frequency of delivery
Order cycle time
Order cycle time reliability
On-time deliveries
Shipment delay
Orders filled completely
Order tracing capability
Back-order percentage
Availability
Product substitutes
Post-transaction elements
Accuracy of invoices
Returns
Damages
Easy to read “use by date” on
packaging
Quality of packaging for in-store
display
4 Strategies for Logistics
Customer Service
Pre-order (Pre-transaction):
Availability, Appropriate Order Cycle
Time (OCT), Consistent OCT.
Order service and quality (Transaction):
Accurate invoices, on-time delivery,
complete orders, product arrived
undamaged, accurate orders,
consistent product quality, product
arrive to specialization
4 Strategies for Logistics
Customer Service
Relationship service (Post-
transaction): After sale support,
delivery time, helpful Customer Service
Relationship, Customized services.
Relationship Quality (Pos-transaction):
Trust, Commitment, Integrity
Global satisfaction (The outcome):
Overall supplier quality, feelings toward
supplier, future purchase intensions
Customer service strategy
process
Firm has 2 techniques: Proactive and
Reactive
Proactive: to satisfy a customer’s
needs. Possible techniques include
service quality or “gaps” model, SCOR
model or bench-making.
Reactive: to a service failure. Possible
techniques include complaint analysis,
Critical incident technique.
5 The Service Quality Model or
Gap Model