Successfully reported this slideshow.
Logistics & Customer ServiceYonus SiddiquiVice President Projects,e2e Supply Chain Management (Pvt.) Ltd.FOUNDER SCAPFOUND...
Tale of Two Customers    BUILD A SCENARIO FOR EACH
Choose your product
Why customer service? Commodity nature of products Cost sensitive customers Cost pressures The 3rd P of marketing Dif...
Service Objective To create such a level of satisfaction with customers that they do not feel it necessary to consider al...
What is Customer Service ? Three main components    Pre-transaction elements    Transaction elements    Post Transacti...
Customer Service Drivers                        •   Order booking                        •   Handling            Process  ...
Customer Service Economics  Define customer service objectives  Write a customer service policy  Remember !    Pareto’...
Customer      Cost of ServiceServiceEconomics                                0             Service Level               100...
Setting Service Standards Set your priorities right                       5% {    Apply Pareto (80/20) rule to both prod...
Service Standard ExamplesRequires a clear and objective understanding of customer’srequirements and willingness to shape t...
Bottom Line Impact for customers Lower inventory        lower working capital No headaches           life is enjoyable...
A Positive Feedback on Logistics The service during my pick up was great. They were  very thorough and careful with all o...
Question / Answers
Upcoming SlideShare
Loading in …5
×

Logistics as Customer Service

13,044 views

Published on

This presentation discusses how the quality of logistics operations can leave a deep impact on customers and what impact it can leave on customer service. Also helps understand management about the tradeoff between service levels, related costs and their impact on the bottom line.

Published in: Business
  • Thanks for sharing these slides. Its very important to my CILT exams and for self studies.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Logistics as Customer Service

  1. 1. Logistics & Customer ServiceYonus SiddiquiVice President Projects,e2e Supply Chain Management (Pvt.) Ltd.FOUNDER SCAPFOUNDER & CEO SCCDI
  2. 2. Tale of Two Customers BUILD A SCENARIO FOR EACH
  3. 3. Choose your product
  4. 4. Why customer service? Commodity nature of products Cost sensitive customers Cost pressures The 3rd P of marketing Difference between you and your competitors is based primarily on price OR customer service
  5. 5. Service Objective To create such a level of satisfaction with customers that they do not feel it necessary to consider alternative offers or suppliers.
  6. 6. What is Customer Service ? Three main components  Pre-transaction elements  Transaction elements  Post Transaction elements Core Product Delivery frequency, reliability & consistency Ease of contact Features Ease of transaction etc. Quality Durability etc. 6
  7. 7. Customer Service Drivers • Order booking • Handling Process • Documentation • Feedback • Software • Tracking Tools • Technology • Website • Ownership • Commitment Culture • Teamwork • Care & focus
  8. 8. Customer Service Economics  Define customer service objectives  Write a customer service policy  Remember !  Pareto’s law  Law of diminishing returns. 8
  9. 9. Customer Cost of ServiceServiceEconomics 0 Service Level 100% Diminishing ReturnsGraphically Service Sales Revenue Overkill Service Zone Threshold Level 0 Service Level 100% Revenue Cost Profit 9 0 Service Level 100%
  10. 10. Setting Service Standards Set your priorities right 5% {  Apply Pareto (80/20) rule to both products 15% and customers % Sales / Profits View service decision as a resource allocation issue 80%  Profits vary by customer & by product  Measure of importance should be PROFIT A B C rather than sales or volume 20% 50% 30%  Contribution margins of each product 0 % Products / Customers 100% SKU to be reviewed separately 20% Customers buying 20% products Develop service policy / standards equals 4% of all transactions  Key accounts Which will provide:  Inventory levels  Stock point positioning 80% of 80% of total profit = 64% profit 10
  11. 11. Service Standard ExamplesRequires a clear and objective understanding of customer’srequirements and willingness to shape those expectations. Order cycle time  Delivery reliability Stock availability  Documentation quality Order size constraints  Claims procedure Ordering convenience  Order completeness Delivery frequency  Technical support  Order status information 11
  12. 12. Bottom Line Impact for customers Lower inventory  lower working capital No headaches  life is enjoyable Timely supplies  more sales / availability Improved profitability  preferred supplier
  13. 13. A Positive Feedback on Logistics The service during my pick up was great. They were very thorough and careful with all of our things. While my things were in transit, your service was also good. I received calls and emails with updates. Also, whenever I had questions, they answered them all to my satisfaction. Your service during delivery was also very great. The guys were very nice and efficient. I can say that you certainly delivered my things on time. I will definitely recommend your moving services to others, thank you!
  14. 14. Question / Answers

×