Question:
Discuss about the Development of Customer Service Strategy.
In order to gain a competitive edge and a distinguished position in the market, the organisation needs to operate with the help of the most important tool known as customer service. The performance of the company is entirely determined by its customer service. The level of service catered by the organisation is identified by the service provided to its client. To create a sound customer service strategy, it is essential that it is related to the logistics system of the company. This means, fulfilling the requirements of the customers in an efficient manner in such a way that the various departments which take part in making the service available to the end customer are in order as well. This process of combining a high level of customer service with departments like shipping, production, manufacturing, quality control and purchase etc. so that the above department functions to the best of their ability is called as Customer logistic management (Wang, 2013). Therefore, it is an incorporation of excellent customer service with the place and time utilities in order to make the service or the product available to the end consumer. The service of distribution must be value added with a good customer interaction so that the customer perceives it as a benefit and not only a product or a service.
The key element of an efficient logistic customer service is to make the customer interact with the company at various levels rather than just establishing a direct contact with just the marketing team who is responsible for selling the product or the service. There are various platforms and mediums to communicate with the customer to make them feel privileged. It is the responsibility of the company to make the customer feel its presence either by social media through online means or through mediums like telecommunication to provide customer centric customer service (Ross, 2016). This can be elaborated with the help of an e.g. like if a company is into manufacturing of a particular product, then the orders received to make a purchase would be shipped to the consumer. Now, to achieve a good customer satisfaction it is evident that the client of the company would want to track the time the product takes to reach the customer. Also, the customer would enquire the date and time when the product was dispatched for the delivery. These queries can be solved by launching a system of interaction between customer and the business. The client gets informed with the complete information of the product with the help of interaction electronically (Terry, 2014). The expectations of the customers are important to be met with the help of an efficient customer service oriented logistics system. Delivering the product or a service with the help of various distribution channels and departments along with providing cut through solutions with in stipulated time to the customers is the key to achieve customer satisfaction. As logistics consists of delivering the right quantity, right product, and right quality of the product at the right time, right place at the right cost to the right customer through the right means, it is imperative to address the needs of the customer through an efficient customer centric approach (Oliveira and Gimeno, 2014). All the elements about managing the inventory consisting of queries regarding items, locations and quantities of stock are to be kept in consideration. Moving further deciding upon the mode of transport, creating a schedule and a route through which the product will be shipped and planning the amount of load to be shipped are the factors which are kept in the mind. These activities are handled by various dedicated departments like inventory department, transport department, warehousing and packaging department (Mangan and Lalwani, 2016). The main role of integrating customer service process with logistics system is understanding the kind of service required by the client from the business. The main focus is managing the delivery system in such a way that it addresses the exact needs of the customer (Rushton, Croucher and Baker, 2017). This aim is only possible through customer communication and interaction in order to determine the wants of the customer. The needs related to the time taken during the transit, cost incurred in the shipment, reliability in terms of the quality can be fulfilled with the help of an integrated approach. The main role of the logistics of an organisation is to ensure that the service or the product offered is placed and distributed correctly to the customer. Therefore, a company needs a weapon to gain a competitive edge over its competitors in the market. If there is a close customer relationship maintained by the company in terms of movement of products and services right from the supplier responsible for making the service/product available to the user responsible for consuming the service, then the logistical system becomes interactive.
The customer service process comprises of key elements which requires anticipating and recognizing the desires of the client and provide them the appropriate solutions to address these desires accurately (Christopher, 2013). A good customer service lays emphasis on engaging the relevant departments in the supply chain with the client so that the customer is aware of the business and they do not feel mislead. For e.g. A magazine company has tie ups with distributor firms who are engaged in activities like wrapping, sorting the destination, managing the database, developing tie ups with airline and shipping companies for transportation. This company needs to integrate various channels of distribution with effective customer service to attain effectiveness in the system. In addition to this, another important element of logistic customer service is achieving customer satisfaction which is possible with introducing an opportunity in the system to make the required improvements in the service offered by the company. If there is a regular communication between the business and the client then there is an open exchange of expectations and the desired changes are made and dealt, which helps in satisfying the customers. The most important element of an effective logistics customer service is the customer’s success. The promise of delighting the end customer gets fulfilled when the service rendered to them offer them more than their expectations. This is achieved by going an extra mile for making modifications and serving their needs by explaining them the working of the systems of the business (Barnes and Hunt, 2013). A customer service approach is called efficient when it is developed in such a manner that the business seeks ways to explain all the features, characteristics, and the appropriate knowledge required to understand the product along with taking their feedbacks or reviews so that the expectations can be addressed.
In order to strategies the logistics service practices of a business, there are two entities who are involved majorly. One is the vendor supplying the product and the other is the end customer consuming the product. Therefore, the strategy of rendering the customer service has a major consequence of the suppliers, sub supplier and other intermediaries involved in the supply chain management. A customer service strategy involves familiarizing the end customers with solutions to their needs. With respect to the elements of logistics customer service there is a great impact of various channels in the supply chain management on the customer service of the business. The processes involved in the logistics system of the business like procurement of raw material till it reaches the recipient for consumption include all the activities like identifying and picking suppliers, finding the channels of distribution and knowing the nature and location of warehouses for storage and managing inventory. Therefore, it is impossible to meet the expectations and find solutions to the customer’s queries without engaging the dedicated departments involving above activities to communicate with the end customer (Pontius, 2017). For e.g. there are various queries which need to be answered to the client in the phase when the transaction takes place for a particular order. The client wants to know the time consumed in processing the order, the product availability, whether the order can be postponed, the paper work which needs to be in order and the consistency in delivery of the product (Wallace and Xia, 2014). Also, the element of customer satisfaction effects the formulation of customer service strategy to a great extent. This can be illustrated with the help of an e.g. i.e. the customer is curious about the price quotation of the product, the charges of shipment, damage and insurance during the transit and the product quality. All these confusions are dealt by an efficient customer service strategy (Riyad, 2013). Thus, anticipation, customer engagement and customer success from a logistics perspective are the elements which have a major implication in developing an effective customer service strategy. A logistics strategy if designed to make the customers feel privileged leads to attain cost effectiveness along with providing an exceptional customer service. This means that it is required for the logistics department of a business to act as an interface between the business and the customer to be successful in strategy formulation and execution
Conclusion
The main objective of the logistics customer service is developing a new approach in which the participants in the supply chain in a particular business are well aware of their responsibilities not only with respect to the partners who trade with them but also towards the customers to whom the service is rendered or the product is being delivered. The various departments in the supply chain management must function as vessels through which communication is established between the business and the customer. These departments must act as intermediary bodies through which the customer engagement is fulfilled. Finally, the customer service strategy designed from a logistics perspective should be such that the client should be the ultimate authority who decides whether the management of the supply chain is appropriate in all respects. The aim designed in the strategy formulated by the business should be efficient to an extent that the participants involved in the channels of supply chain do not limit themselves to just the suppliers and trading parties they are involved with, but it should also address to the needs and desires of the client. This leads to attainment of high customer success and satisfaction which indicates a good customer service delivered by the business. The business should operate keeping in mind the long perspective through incorporating customer centric approach in which the entire supply chain fulfils the changing requirements of the end customers.
References
Barnes, S., and Hunt, B. 2013. E-Commerce and V-Business. UK: Taylor & Francis, p. 203.
Christopher, M. 2013. Logistics and Supply Chain Management ePub eBook. UK: Pearson.
Christopher, M., Payne, A., and Ballantyne, D. 2013. Relationship Marketing. UK: Taylor & Francis, p. 159.
Mangan, J., and Lalwani, C. 2016. Global Logistics and Supply Chain Management. US: John Wiley & Sons, p. 5.
Oliveira, A., and Gimeno, A. 2014. Customer Service Supply Chain Management: Models for Achieving Customer Satisfaction, Supply Chain Performance, and Shareholder Value. US: FT Press, pp. 67-70.
Pontius, N. 2017. Logistics Strategies for Business: 23 Experts Share Tips on How to Develop a Winning Logistics Strategy. Accessed on: 5th October, 2017. Accessed from: https://www.camcode.com/asset-tags/how-to-create-a-winning-logistics-strategy/
Riyad, E. 2013. Managing Customer Trust, Satisfaction, and Loyalty through Information Communication Technologies. US: IGI Global.
Ross, D. V. 2016. Introduction to Supply Chain Management Technologies. US: CRC Press, p. 4.
Rushton, A., Croucher, P., and Baker, P. 2017. The Handbook of Logistics and Distribution Management: Understanding the Supply Chain. UK: Kogan Page Publishers, pp. 36-50.
Terry, L. 2014. Customer Service: It’s the Thought That Counts. Accessed on: 5th October, 2017. Accessed from: https://www.inboundlogistics.com/cms/article/customer-service-its-the-thought-that-counts/
Wallace, W. L., and Xia, Y. L. 2014. Delivering Customer Value through Procurement and Strategic Sourcing: A Professional Guide to Creating A Sustainable Supply Network. UK: Pearson Education, pp. 67-70.
Wang, J. 2013. Management Science, Logistics, and Operations Research. US: IGI Global
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