Customer Service

1. 1
Customer Service
Importance of Customer Service
1. Customer service level measures effectiveness
of integrated logistics
2. Improved Customer service makes business
grow
3. Makes customers loyal, added value (service)
can “lock up” the customers

2. 4. Provides edge in competitive business
5. Delivers seven rights to customer (Seven R
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rule) right product, right quantity, right
condition, right place, right time, right
customer, right cost

3. 3
Seven R rule (Seven Rights)
• Above are components of customer service
• Deliver value to customer
• Provide edge in competition
• Any disruption in the above causes breakdown
of customer service

4. Factors or components of customer service
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1. Product availability
2. Order cycle time
3. Dependability in terms of lead time, Safe
delivery, Correct orders
4. Communications
• Ease
• Correctness
• Promptness in response

5. 5
5. Convenience (customer’s)/Flexibility
(supplier’s)
• Customer’s expectation of service differs from
case to case
• Customers grouping should be done to
recognize varied needs
• Customize the service to suit the needs of
customer categories

6. 6
Objectives of Customer Service
 Delivering 100% perfect orders
 Creating competitive value by delivering seven
R value (seven rights) to customers
Three levels of customer service
How do we visualize customer service?
How do we direct organizational efforts to deliver
customer service?

7. 1. Perform Customer service as an activity. Relate
customer service to activities-every activity is to
serve the customer, keep various factors of
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customer service in mind
2. Pursue customer service targets as performance
measures like lead-time reduction
3. Practice customer service as philosophy. Think
customer service while working

8. Categorization of Customer Service Elements
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Pre-transaction Elements
Customer service policy
Organizational Structure for customer service
System flexibility
Management services (informational)

9. 9
Transaction Elements
Minimize stock-out
Give order information whenever required
Perform elements of order cycle
Expedite shipments
Minimize transshipment (intermediate
destinations)

10. Maintain system accuracy (minimize errors)
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Meet order convenience
Do product substitution to maintain service level
Post-transaction Elements
Installation, warranty, repairs, alterations
Product tracing
Customer claims, complaints, returns
Temporary replacement of products

11. 11
Customer service strategies
Customer audit to categorize customers, A,B,C -
All customer accounts [profitability] are not same
Identify salient features of customer service
expectations of categories
• Shortest lead-time?
• Consistent lead-time?

12. • Packaging
• Number in package
• Time of delivery
Decide degree of customization of service to
categories
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