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 seller’s 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 statement2. Customer receives policy statement3. Organizational structure4. System flexibility5. Technical and Management services

Customer Service Dimension

• Transaction Elements:1. Stock out level2. Order information3. Elements of order cycle4. Expediting shipments5. Transshipments6. System accuracy7. Order conveniences8. Product substitution

Customer Service Dimension

• Post Transaction Elements:1. Installation, warranty alterations, repairs and

service parts2. Product Packaging3. Product tracking4. Customer claims, complaints, returns5. Temporary replacement of products

Customer Service Dimension

• Importance of Logistics/Supply Chain Customer Service:1. Effects of Customer Service on Sales2. 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 needsStep 2: Defining customer service objectivesStep 3: Designing the logistics systems

Customer Service Dimension

• Basic Service Capability: Basic logistical service is measured in terms of1. Availability2. Operational performance, and3. 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.