2. Customer service
The group of utilities or benefits the
customer expects from the supplier
3. Elements of customer service
1. Order cycle time- the time taken between
placing the order and receipt of delivery
2. Order cycle consistency- the extent to which
order cycle time varies
3. Order accuracy- the degree to which items
shipped meet order specifications
4. Order completeness- the extent the items
ordered are totally filled when the order is
assembled for shipment
5. Order condition- damage level at the time of
receipt
5. Expected customer complaints
1. Sale order service- late shipments, errors in
invoicing, breakage errors, errors in sale
coding
2. Traffic and transportation-damaged
merchandise, failure of carrier to meet
standard transit time, to follow customer
routing
3. Ware housing and packaging-damaged
merchandise delivered from field warehouse,
incorrect order fulfillment
4. Inventory control- stock outs, delivery of poor
merchandise, errors in product identification
6. Designing the customer service
package
1. Identify customer service needs
2. Establishing relative importance of
customer service components
3. Identify companies’ position and the key
components of service
4. Segmenting the market by service
requirements
5. Designing the customer service package
6. Establishing customer service
management and control procedures
7. Order processing
Various steps involved in execution of
customer order
1. Order collection
2. Status reporting
3. Internal order communication
4. Credit checking
5. Order processing
8. 1. Order collection
Through sales persons from the field
Through pre-set formats
Through telephone
Through fax and e-mail
10. 3. Internal order communication
1. Parallel order communication
2. Sequential order communication
11. 4. Credit checking
Prompt communication between credit
in charge and local sales representative
12. 5. Order processing
Order management cycle involves
various activities that include
1. Order preparation
2. Order transmittal
3. Entry
4. Filling
13. Functions of order processing
Complete order forms and check customer orders
for error
Keep customers, purchase executives informed of
the status
Make the order available to sales, finance,
accounting and purchasing for extracting
necessary information
Coordination with the credit department
Communicate the orders to the appropriate
shipping point
Updating inventory control records and
manufacturing schedules
14. Grouping them into four basic
activities
1. Order acquisition
2. Order entry
3. Order document processing
4. Order status reporting
15. Factors affecting order
processing time
1. Interaction with consumer
2. Processing priorities
Relative order size
Relative order volume
Relative order placement time
Order placement sequence
Customer per sequence
3. Order filling accuracy
4. Order batching