Customer Service as It Applies to Logistics
Marketing dictates what logistics should be. The most important strategic question is how to find such a combination of services and the level of service that would facilitate the conclusion of profitable trades. A look at the customer service as management philosophy reflects the significant role of customer-oriented marketing. Customer service is the process of creating substantial benefits in supply chain, containing added tax, while maintaining costs at an efficient level. This definition reflects the tendency to consider customer service as a process aimed at the management of supply and distribution chain. The level of service in logistics is characterized by three parameters, namely availability, functionality and reliability.
Availability is the presence of stocks, where customers need them. Storage networks, created by individual firms to serve the same types of consumers, sometimes significantly differ on the quantitative composition and location. For example, a division of Johnson & Johnson traditionally prefers a small network consisting of three or four storage facilities that serve the whole territory of the United States. A Nabisco Foods to meet the logistics needs of the region holds more than a dozen stores. Typically, the more numerous network storage capacity is, the greater the average amount of inventory required to provide a given level of availability is. Functionality (cycle of execution of the order) is determined by such operational parameters as speed, continuity, flexibility and the level of failure / deficiencies. Also, the quality of logistics is entirely dependent on its reliability, that is, the ability to adhere to the planned level of inventory availability and functionality of operations. Quality of service standards in excess of the base involves the ability and willingness of consumers to quickly provide accurate information about the current logistics activities, and other circumstances. Many studies suggest that it is the ability of the company to provide accurate information on time is one of the most important indicators of its expertise in customer service. Consumers increasingly incline to believe that the advance information on the manner and timing of execution of the order is more important than the execution itself. Thus, the logistics service is inextricably linked to the distribution process and is a complex of services rendered during the supply of goods to the consumer. The object of the logistics service is companies of productive and non-productive sphere, population (Wisner and Stanley, 2007).
Comparison of Customer Service, Customer Satisfaction and Customer Success Philosophies of Supply Chain Management
Customer service relates to the overall actions of the company in order to meet customer needs and create customer satisfaction. Customer service typically concerns teamwork. Customer satisfaction is the feeling of happiness the client has after receiving the service. If the company intends to raise customer satisfaction, it tries to pleasure consumers or exceed their expectations. Customer success appears when the organization has attained customer satisfaction by ensuring proper customer service. If comparing these terms, it is worth stating that both customer service and customer success are crucial obligations toward accepting consumers. Customer satisfaction relates to the customer success. The dissimilarity between customer service and customer satisfaction is in the fact that customer service is a reason, whereas customer satisfaction is the consequence or outcome of that reason. Thus, customer satisfaction concentrates on clients, their anticipations, and views of service provider operation. Logistics managers should constantly observe customer satisfaction and search for meeting or exceeding anticipations. Customer success concentrates on the client’s existing requests. Attaining triumph needs particular knowledge of consumer’s requirements and operational needs and an obligation by the supplier to improve a consumer’s capability to compete more effectively in the market (Christopher, 2011).
Christopher, M. (2011). Logistics and Supply Chain Management. 4th ed. Upper Saddle River: FT Press.
Wisner, J. D. and Stanley, L. L. (2007). Process Management: Creating Value Along the Supply Chain. Boston: Cengage Learning.