Transcript Document

CUSTOMER SERVICES

Andary A Munita Hanafiah

Three C’s

CUSTOMER COMPANY VALUE

COST DIFFERENTIAL

COMPETITOR

Definition And Scope

Process For Providing Significant Value-added Benefits To The Customer In An Efficient Way Activity Performance Phil.Of Mngt.

Process Efficient Customer Focused

Stage Of Process

1. Pre Transaction 2. Transaction 3. Post Transaction

Pre Transaction

Relate To Corporate Policies Or Program:

Written Customer Service Policy

Accessibility

Organization Structure

System Flexibility

Indicator Performance

Pre Transaction

• • •

Stock Availability Target Delivery Response Time To Queries

Transaction

Concern With Customer Service Variable Directly Involve In Performing The Services

• • •

Order Cycle Time Inventory Availability

Order Fill Rate Order Status Information

Indicator Performance

Transaction

• • •

Order Fill Rate On Time Delivery

• •

Back-orders Shipment Delay Product Substitutions

Post Transaction

Elements That Are Generally Supportive Of Product While In Use

• •

Availability Of Spare Part

Call-out Time

Product Tracing/warranty Customer Complaints, Claims, Etc.

Indicator Performance

Post Transaction

• • •

First Call Fix Rate Customer Complaints

Returns/claim

Invoice Error Service Part Availability

Quality ?

Fitness for Use

Conform To Specification

Dimension of Service Quality

• • •

Tangible Appearance of physical facilities, equipment, personnel, and communication material Reliability Ability to perform the promised service dependability and accurately Responsiveness Willingness to help customers and provide prompt service

Dimension of Service Quality

• • • •

Security Freedom from danger, risk, or doubt Access Approachability and ease of contact Communication Keeping customers informed in language they can understand and listening to them Understanding the Customer

Making the effort to know customers and their needs

Service Standard

1. Order Cycle Time 2. Stock Availability 3. Order Size Constraint 4. Ordering Convinience 5. Frequency Of Delivery 6. Delivery Realibility 7. Documentation Quality 8. Claims Procedure 9. Order Completeness 10. Technical Support 11. Order Status Information

Composite Service Index Aggregat’s Indicator Of Customer Service That Can Be Used As A Management Tool CSI = Sum Of ( Iw X Pl) Iw : Importance Weight Of Service Element Pl : Pereformance Level Of Service Element

Focused On Customer

1.

2.

3.

Customer Needs Product Become Worth Due To Services Has Added Value To The Core Product Product And Services Become Meaningful Only When Its Available And Positioned From The Customer’s Perspective At The Time And Place Required

Service Surround

SERVICE CORE PRODUCT SURROUND

Customers’ Service Need 1. Identify The Key Component Of Customer Service 2. Establish The Relative Importance Service Components 3. Identify Cluster Of Customer

VOLUME

Setting Customer Service Priorities Profit Contribution

LOW HIGH SEEK COST PROVIDE HIGH REDUCTION AVAILABILITY H I GH L O W REVIEW JIT DELIVERY PROFIT CONTRIBUTION

Types Of Service

1. Basic Services Customer Service Program Upon Which A Firm Builds Its Fundamental Business Relationship 2. Zero Defect Services Customer Service Leads To Perfect Order Performance 3. Value Added Services Unique/specific Activities That Firm Can Jointly Work Out To Increase Effectiveness And Efficiency

I. Basic Service Capability

Basic Capability To Satisfy The Customers Availability Performance Reliability

A. Availability

Capability to have goods (inventory) when it is desired by a customer Operating Safety Stock Stock

Measurement Of Availability

1. Stock Out Frequency How Many Times Demand for Specific Product Exceeds Stock Available.

2. Fill Rate Number of Goods That Could Not Be Fulfill Promptly 3. Orders Shipped Complete Number of Order That Could Be Fulfill Completely and Promptly

B. Operational Performance

Capability To Give The Services To The Customers Measured By: 4.

2.

1.

Speed Consistency 3.

Flexibility Mulfunction/recovery

Speed

Elapsed Time From When An Order Is Placed Untill Shipment Arrival

Consistency

Ability To Perform Orders At The Expected Delivery Time Over A Large Number Of Performance Cycle Compliance To Delivery Commitment Over Time

Flexibility

Ability To Handle Extraordinary Customer Service Request Caused By: 2.

1.

Modification In Basic Service Arrangement Support Of Unique Sales/ Marketing Program 3.

New Product Introduction 4.

5.

6.

7.

Product Phase Out Disruption In Supply Product Recall Customization

Mulfunction/Recovery

Ability To Prevent Mulfunction Or To Prevent/ Accommodate Special Situation Contingency Plans

C. Reliability

Ability To Comply Planned Inventory Availability And Operational Performance

II. Value Added Services 1. Customer focus services 2. Promotion focus services 3. Manufacturing focus services 4. Time focus services 5. Basic services

Competitive Service Strategy

Cost Leadership

– Seeking Out Low Cost Customer Standardizing a Custom Service Reducing the Personal Element in Service Delivery Reducing Network Cost Taking Service Operation Off-line • •

Differentiation

– Making the Intangible Tangible Customizing the Standard Product Reducing Perceived Risk Giving Attention to Personnel Training Controlling Quality

Focus

Challenge For Manager

• Low Labor Intensity – Capital Decision – – Technological Advances Managing Demand – Scheduling Service Delivery High Labor Intensity – Hiring – – – – – – – Training Methods Development and Control Employee Welfare Scheduling Workforces Control of Far-flung Geographical Location Setup of New Unit Managing Growth

Challenge For Manager

Low Interaction/customization

– Marketing – – Service Oriented Attention to Physical Surrounding •

High Interaction/customization

– Fighting Cost Increases – – – – Maintaining Quality Reacting to Consumer Intervention in Process Managing Advancement of People Delivering Service Gaining Employee Loyalty