Logistics and Supply chain Management

Dr. A.Shakuntala

CUSTOMER SERVICE
Customer service is an output of the logistics system and is a key to gain competitive advantage.

CUSTOMER SERVICE
Customer service is defined as the measure of how well the logistics system is performing in providing time and place utility for a product or service.

CUSTOMER SERVICE DIMENSION

Customer service includes all activities between the buyer and seller that enhance or facilitate the sale or use of the sellers product or service.

CUSTOMER SERVICE DIMENSION

Elements of Customer Service: The elements of customer service can be classified into three groups: Pre-transaction elements Transaction elements Post-transaction elements

Customer Service Dimension

Pre-transaction Elements: 1. Written Policy statement 2. Customer receives policy statement 3. Organizational structure 4. System flexibility 5. Technical and Management services

Customer Service Dimension

Transaction Elements:
1. 2. 3. 4. 5. 6. 7. 8. Stock out level Order information Elements of order cycle Expediting shipments Transshipments System accuracy Order conveniences Product substitution

Customer Service Dimension

Post Transaction Elements: 1. Installation, warranty alterations, repairs and service parts 2. Product Packaging 3. Product tracking 4. Customer claims, complaints, returns 5. Temporary replacement of products

Customer Service Dimension

Importance of Logistics/Supply Chain Customer Service: 1. Effects of Customer Service on Sales 2. Effects of Customer Service on Customer Loyalty

Customer Service Dimension

Service Driven Logistics System: Service Driven Logistics System is a system that is designed to meet the defined service goals of the organization.

Customer Service Dimension

Logistics system design: Step 1: Identifying customers service needs Step 2: Defining customer service objectives Step 3: Designing the logistics systems

Customer Service Dimension

Basic Service Capability: Basic logistical service is measured in terms of 1. Availability 2. Operational performance, and 3. Service reliability

Customer Service Dimension

Basic Service Capability: Availability means having inventory to meet customers requirements of materials or products consistently without fail.

Customer Service Dimension

Operational performance is concerned with the elapsed time between order receipt to order delivery.

Customer Service Dimension

Service reliability is concerned with quality attributes of logistics that is how accurately availability and operational performance can be measured.

Value Added Services

Value Added Services refer to unique activities that firms can together workout to augment their efficiency, effectiveness and relevancy.

TIME BASED LOGISTICS

Time based logistics based on two basic concepts, i) postponement and ii) consolidation which facilitate timely performance and reduce total costs.

TIME BASED LOGISTICS

Time based competition refers to the ways of taking time out of operations in the supply chain.