CHAPTER 6 : LOGISTICS/ SUPPLY CHAIN CUSTOMER SERVICE

INTRODUCTION 

Introduce the concept and term of customer service that is involved in business logistics. Logistics customer service is the quality whereby the flow of goods and service is managed. It is what being offered to the customer by suppliers that could secure patronage.Customer service also generally presumed to be means by which companies attempt to differentiate their product, keep customer loyal, increase sales and improve the profits.

6.0 ELEMENT OF CUSTOMER SERVICE

6.0.1 ELEMENT IN CUSTOMER SERVICE

6.1 IMPORTANCE OF CUSTOMER SERVICE

1. On time delivery - Just in time(JIT) delivery refer to time management. For example, when customer want their product on 5pm, that's mean, the product must be arrived on 5pm at customer location. 
2. Order fill rate - Based on quantity of product that customer need or want. Refer to customer order based on quantity. For example, order 4 burger, give 4 burger too. 
3. Product condition - Quality of the product. The quality product can reach to the customer satisfaction. 
4. Accurate documentation - Information or prove that customer buy the product for example the customer get the resit

6.2 SERVICE VERSUS COST

6.3 SALES-SERVICE RELATIONSHIP

GENERAL RELATIONSHIP OF SALES TO CUSTOMER SERVICE

The relationship that exist between the level of sales and the level of customer service being provided to the buyers. When little or no customer service is given to the buyer, little or no sales are generated, More service improvement will see more increase in sales. Improved service generally means lower inventory costs for the buyer, assuming that product quality and acquisition price remain unaffected by the improved service offering. 

More customer service offered will result in more sales. Up to a point more service will result in a decline in sales. The frequency of order-progress information may become excessive for some buyers. This will result in withdrawal sales patronage from a supplier.

6.4 SERVICE CONTINGENCIES

 Much of the logistician's planning and control effort is directed toward running an efficient operation under normal conditions or we call unexpected things happen. At the same time, preparations must be made to handle those extraordinary circumstances that may shut down the system or drastically alter its operating characteristics in a short time period, such as labor strikes, fir, flood,or dangerous products defects. Common contingencies divide by two which is system breakdown and product recall.

6.4.1 SYSTEM BREAKDOWN

Some service interruptions are bound to occur, but we would not necessary consider the significant enough to have special plans ready in case of their happen. Expediting a delayed purchase order, Handling seasonal ordering peak loads, or having redundant equipment to meet breakdowns - none of these situation really require contingency plans since they are a normal part of business activity, 

The following actions have been suggested to lessen or avoid the impact sudden supply chain interruption : 

- Insure risk

- Plan for alternate supply sources

- Arrange alternate transportation

- Shift demand

- Build quick response to demand shifts

- Set inventories for disruptions possibilities

6.4.2 PRODUCT RECALL

Involve nearly every function within business. It is refer to reverse logistics but not redesign the product. Those responsibilities for logistics matters are particularly affected logisticians become involved in product recall in three ways :

1) Chairing a task force committee for recall. 

2) Tracing the product 

3) Designing the reverse logistics channel 

COMPONENT OF CUSTOMER ORDER CYCLE

LOGISTICS IS NO LONGER THE "LAST FRONTIER OF COST REDUCTION ," IT'S THE NEW FRONTIER OF DEMAND GENERATION