Transcript 8. Customer Service The Supply Chain Management Guide

The Supply Chain Management Guide
8. Customer Service
8. Customer
Service
8.1. Key Concepts
Customer Service Standard
A statement of goals and acceptable
performance for the quality of service
that a company expects to deliver
to its customers.
8. Customer
Service
8.2. Principal Issues
8.2.1. What Customers Look for (1)
What customers look for:
• Pre-transaction:
• accessibility of data (catalogue, price lists, literature)
• completeness of data (products, prices, instructions)
• availability of samples
8. Customer
Service
8.2. Principal Issues
8.2.1. What Customers Look for (2)
• accessibility of the organization:
• experts
• assurance of product suitability, quality, reliability
(employees should be knowledgeable about products)
• customers want to be noticed, appreciated and
recognized as important individuals
• efficiency of the information flow
8. Customer
Service
8.2. Principal Issues
8.2.1. What Customers Look for (3)
• Transaction:
• reliability: delivery on time, in the right quantities, and
error-free
• quality of products, packaging, palletisation
• information about order processing, dispatch, transport
• flexibility: time, product variants, volumes
• assurance of satisfaction after purchase.
8. Customer
Service
8.2. Principal Issues
8.2.1. What Customers Look for (4)
• Post-transaction:
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technical support, training, helpdesk
availability of spare parts and repair instructions
product traceability
handling of complaints: speed, monitoring, evaluation
administration: invoices, accounts receivable, and
payments
• performance measurements and evaluation.
8. Customer
Service
8.2. Principal Issues
8.2.2. What Customers Experience (1)
The customer experience is:
• any episode in which the customer comes in
contact with the organization:
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personal contact
telephone
mail
advertising
internet (i.e., e-mail, forms)
• any event that forms a perception of the
organization in the mind of the customer.
8. Customer
Service
8.2. Principal Issues
8.2.2. What Customers Experience (2)
The customer experience is a chain of contacts the
customer undergoes in obtaining a product. Each
link represents a contact. The total experience
depends on the weakest link.
Customer
(start)
Shipping
Sales
Service
Customer
(end)
8. Customer
Service
8.2. Principal Issues
8.2.3. What Customers Want
Fill in this table for all of your products
Customer
wants
Product
offered
Fast car
Sports car
Product
Performance
characteristic
measure
Speed
mph
Performance
target
8. Customer
Service
8.2. Principal Issues
8.2.4. Customer Service Issues
Customer service issues include:
• accurate understanding of customer’s needs and
wants
• the ability to deliver necessary customer service
levels
• variations between plans and their actual
implementation
• effective communications with the customer’s
• difference between supplier’s and customer’s
perception of service level.
8. Customer
Service
8.2. Principal Issues
8.2.5. Service Levels
Which service level approach to you use:
• cut costs and reduce or eliminate service
• maximum service at any cost
• the cost of stock-out is no greater than the cost of
carrying additional inventory (break-even point)
• competitive advantage, where service is
sufficiently higher than competitors’ service.
8. Customer
Service
8.3. Analysis
8.3.1. Customer Analysis (1)
Customer Analysis: example table:
The following table helps to identify the customer
groups, their primary expectations, and their
contribution to total sales.
Customer 1
Customer 2
Customer 3
Customer 4
------------------------Total Sales
Sales (value) % Total Sales % Cumul
Products
92000
18,4
18,4
A
83500
16,7
35,1
A (75%), B(25%)
73200
14,6
49,7
B
31500
6,3
56,0
C
500000
What the customer wants
3 days ex stock
2 weeks
5 days ex stock
6 weeks order to delivery
8. Customer
Service
8.3. Analysis
8.3.1. Customer Analysis (2)
Pareto Analysis:
• in many cases, approximately 80% of the turnover
(i.e., stock) can be ascribed to approximately 20 %
of the customers, articles or orders
• Rank the customers, products, etc. in order of
magnitude
• Calculate % that each item contributes to total
value
• derive a cumulative % list
• evaluate the cumulative list and identify
appropriate breakpoints (A, B and C).
8. Customer
Service
8.3. Analysis
8.3.1. Customer Analysis (3)
8. Customer
Service
8.3. Analysis
8.3.2. Know the Customer
Know the customer:
• Who is our customer?
• What are the important things we know about our
customers?
• What do our customers expect?
• What do our customers want?
8. Customer
Service
8.3. Analysis
8.3.3. Customer Service Levels
Customer service levels:
• Do we consistently meet and exceed
expectations?
• How well do we solve the problems that our
customers experience?
• What service levels will give us a relative edge
over our competitors?
• How, and how quickly, are we using customer
information?
8. Customer
Service
8.3. Analysis
8.3.4. Customer Response
Customer response
• What did you like most/least about doing
business with us?
• What will you tell others about us?
• How can we serve you better?
8. Customer
Service
8.4. Suggestions
Group (segment ) customers based on service
needs:
• Companies traditionally group customers by
industry or product, and then provide the same
level of service to everyone within the group.
• To improve customer satisfaction, customers
should be grouped by distinct service needs and
services should be tailored to each group.
8. Customer
Service
8.5. Performance Indicators
8.5.1. Customer Service Level
Customer service level
• The desired probability versus the actual
percentage that product demand can be met from
stock
• expressed in a number of ways:
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% of orders completely satisfied from stock
% of units demanded which are met from stock
% of units demanded which are delivered on time
% of time there is stock available
8. Customer
Service
8.5. Performance Indicators
8.5.2. Availability
Performance indicators of availability:
• stock-out frequency:
• how many times does demand for a specific product
exceed its availability
• fill rate:
• how much of a specific product is available to satisfy
customer demand
• orders shipped complete:
• how often is customer demand fully met.
8. Customer
Service
8.5. Performance Indicators
8.5.3. Operational Performance
Operational performance indicators:
• speed:
• order cycle time
• flexibility:
• ability to handle extraordinary customer requests
• malfunction recovery:
• contingency plans for recovering from service failures.
8. Customer
Service
8.5. Performance Indicators
8.5.4. Reliability
Reliability performance indicators:
• ability to comply to:
• planned inventory availability
• operational performance
• capability and willingness to:
• provide accurate and timely customer logistical
information
• commitment to:
• continuous service quality improvement.
8. Customer
Service
8.5. Performance Indicators
8.5.5. Quality
Quality performance indicators:
• Ability to deliver:
• items without errors
• shipped goods without damage.