customer service

Component of

Customer Service

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Components of Customer Service

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The most important aspect to understand in any Supply chain is the

definition of Customer and supplier. Who is customer and who is

Supplier?

Let us look at the process

You will see that the supplier is a customer for its subcontractor,

purchaser is its customer, production department is Purchases

customer, Quality is productions customer, Packing is customer of

Quality, Warehouse is production/quality departments customer,

warehouse is Sales department customer and Ultimate Consumers/

Dealers/Distributors customer. So at every stage of supply chain we

have two most important identities, Customer and Supplier. It is valid



and true for every kind of Supply chains, whether manufacturing or

service industry. The supplier is always under the pressure satisfy its

customers expectations at every level. Customer always dictate its

terms and a satisfied Customer in-turns, place fresh and repeated

orders. This is how any supply chain works.

The ultimate goal of any Supply chain is to establish a customer

oriented system and to ensure customer is serviced at the best level.

We will discuss the main components of Customer service here.

During my experience of long 25 years, I find few of the main

component of customer service are

a) Response Time

b) Product Choice/Variety

c) Availability of Product

d) Customer Experience

e) Order Traceability

f) Goods Return policy

Please take a note that customer definition has now changed over a

period of time. Previously it was said that Customer is the King. But

now the definition has changed to Customer is only the king. He

dictate his own terms and condition. Therefore a supplier has to

understand the mind set and requirement of his customers.

a) Response Time This is one of the most

important ingredients of any supply chain.

Paradigm has changed. Now customer places

his order only to those who respond faster and



quicker. At any point of time it is necessary to respond to the

customer quickly. Whether your customer is a supplier or Purchase

department or production department or Quality department or

packing department, etc., you have to respond to your customer

with the information required by the customer, which may be status

of material, rates, discounts, dispatch details or status of the order.

There is no escape to it.

b) Product Choice/ Variety Now a days everyone wants a selection

list, out of which he will select and give the order. For example if you

go to market to buy a pair of shoes for yourself, even though you

have chosen some model, but you will ask for more variants from

the shop keeper. If the shop is not having the desired model or more

variety, it is for sure you will not buy from that shoe. Variety gives

the customers choices to select from. If you dont have variety, then

there are chances of Sales loss.

c) Availability of Material Information is

incomplete so far as it is not fulfilling

the execution of the requirement of the

customer. Availability of material is

must for the customer service. If a

customer has chosen any item; you

dont have in stock; and the customer is unable to choose any other

item, then it is a sales loss. The customer will not wait for the

availability; he will buy from other sources. But there is a debatable

whether to invest heavy capital in keeping the stock or to lose sales.

Decisions can be taken by the management whether to increase the



stock, make limited number of SKUs and bear the sales loss. But it is

for sure that if a customer has been denied of any SKU, then there is

50% probability that the customer will come again at your counter.

Availability of the material plays an important role in retention of

customer and inflow of repeated orders.

d) Customers Experience Customer

Experience is a Benchmark for any

company. So far companies have been

talking of Product quality, prices and

delivery to the customers. But now

marketers are talking of customers

experience with the company from the

enquiry till the usage of the produced and after sales service

experience. Experience of the customer the company, matters the

most. This experience only motivates the customer for taking

services of the company again and again. A good experience will

always will be remembered by the

customer and he will share it with all

others in his circle of influence. Even

the experience the customer had on

e-commerce sites also improves the

image of the company. The menus should be interactive and users

friendly. Minimum steps should be taken by the customers to search,

decide, opt for payment, tracking the article till delivered.

Customers experience with the company is very very important,

cant be taken for granted.



e) Order Traceability Customer take lot of pain in searching the

product of his choice and also pay for the product, therefore it is his

right to know the status of the material en-route. Company should

provide the customer the steps involved and the status of transit of

the material on regular intervals. Company can send the status via

SMS, Whatsup, email or call. This builds his trust in the company and

products. This applies to internal customers also. Like production

should be intimated on the status of availability of the raw material

from time to time, by the procurement department.

f) Goods Return Policy It applies to both

tradition systems of purchase & sales and

purchase & Sales through e-portals. When a

customer buys a product, he always asks for

self-life of the product and warranty given by

the company and also enquires about the

after sales services. A goods returns policy

ensure the customers that there would be no defect in the material,

that is why the company is so confident that they have goods return

policy in place and if there is any defect, then he has the option of

getting the damaged product replaced or get the money reimbursed.

There is not end to the list pertaining to Customer service. Lot of

research has been done on this subject by the prominent universities

and institutes and still more studies are going on many other

dimensions on customer retention and customer services because

Customer is only the KING



About author

Rajinder Singh Mann, B.Sc., PGDCS, MBA, MPhil. Having Experience of 25 years

in S&OP, Education, Logistics, SCM. Has worked in diverse industries like

Publishing, Fasteners, Paints and Varnishes, Food Processing, Education and

Training, Steel wares and Table-wares. Presently associated with Ceramics

Industry heading Supply Chain Department.

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