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Customer Customer

Customer - PowerPoint Presentation

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Uploaded On 2015-10-08

Customer - PPT Presentation

Service amp Relationships What is Customer Service No easy way to define May view Customer Service in 3 ways As an activity A task that is performed to satisfy customer needs Order processing billing amp invoicing product returns claims handling ID: 153817

party customer service time customer party time service type shipper standards orders order performance amp measures parties carrier relationship

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Presentation Transcript

Slide1

Customer Service & RelationshipsSlide2

What is Customer Service?

No easy way to define

May view Customer Service in 3 ways

As an activity

A task that is performed to satisfy customer needs

Order processing, billing & invoicing, product returns, claims handling

As a performance measure

Success in achieving goals

% of orders delivered on time, time to complete orders

As a philosophy

Firm-wide commitment to customer satisfaction

A focus on qualitySlide3

Customer Service

The ability of logistics management to satisfy users in terms of

Time

Dependability

Communication

ConvenienceSlide4

Aspects of Customer Service

Time

Reduced order cycle time

Dependability

The reliability of the service encounter

Consistent order cycles

Safe delivery

Complete deliverySlide5

Aspects of Customer Service

Communication

Two-way exchange of information

Complete information exchange

Convenience

The ease of doing business with the other party

Must assess extent to which

the customer(s

) is (are) willing to pay for this easeSlide6

Customer Service Objectives

Should be

Specific

Measurable

Achievable

Cost-effective

MUST take the customer’s viewpoint into account

Benchmarking

Comparing performance to the competition’s performanceSlide7

Performance Measures

ALWAYS stated from the view point of the customer

2 key components

Measures used before shipping to customer

Measures used after shipping to customerSlide8

Pre-Shipment Performance Measures

Product Availability

% availability in base units (order, product, dollars)

Order Cycle Time

Time from order placement to order receipt

Speed and consistency

Distribution System Flexibility

Response time to special requestsSlide9

Pre-Shipment Performance Measures

Distribution System Information

Speed, accuracy, & message detail of response

Distribution System Malfunction

Response and recovery time requirements

Post-sale Product Support

Technical information, spare parts, equipment modification

Response time, quality of responseSlide10

Post-Shipment Measures

Orders received on time

Orders received complete

Orders received damage free

Orders filled accurately

Orders billed accuratelySlide11

Implementing Customer Service Standards

Set standards

Must be realistic but high enough for competitive advantage

Focus on quality

Communicate with customers

Set standards with customer input

Communicate standards with customers

Control procedures

For measuring, monitoring, and controlling

Amend or discontinue standards as appropriateSlide12

Types of Buyer/Seller Relationships

Arm’s Length Relationships

Type I Partnerships

Type II Partnerships

Type III Partnerships

Joint Ventures

Vertical IntegrationSlide13

Arm’s Length Relationships

Last for

single

transaction

No commitments made for future transactions

Price is the most typical deciding factor

Can minimize risk to both carrier & shipper

May not result in lowest price for shipper

Appropriate when carrier’s service offerings are considered commodities or standardSlide14

Type I Partnership

Short-term contractual relationship (

typical, 1 yr)

Requires little investment on part of either party

Limited scope of activities

Similar to arm’s length relationship except

Longer-termed

May include guarantees by both parties

I.e., shipper may guarantee minimum volume

I.e., carrier may guarantee delivery

times,

or minimum portion of fleet dedicated to shipperSlide15

Type II Partnership

Contractual relationship

Generally longer-termed than Type I’s (

typical,

2 – 5 years)

May require investment by either party

Scope of activities generally largerSlide16

Type III Partnership

Not normally governed by contract

No formal endpoint to relationship

Assets used in relationship may be jointly owned

Shared scope of activities is substantial

In essence, carrier performs all transportation services needed by shipper

Shipper is only client of carrier in most casesSlide17

Joint Venture

Similar to Type III

New firm is created with investments from both parties

Focus is for each party to benefit from the other party’s expertise

Example

Encompass JV

b/n

American Airlines and CSX

Railroad

created

to develop global booking & tracking system for freight movementsSlide18

Vertical Integration

Essentially, the use of private fleets

Firm requiring transportation services fulfills this need internallySlide19

Third-Parties

Company that supplies/coordinates logistics functions across multiple links in the logistics supply chain.

Essentially, a third-party acts as the link between the

Seller/shipper

Buyer/receiverSlide20

Benefits of Using Third-Parties

Lower costs

Improved Expertise/Market Knowledge & Access to Data

Improved Operational Efficiency

Improved Customer Service

Ability to Focus on Core Business

Greater FlexibilitySlide21

Third-Party Contracts:

Suggested Minimum Contents

Identify

the parties

Commit

shipper to tender shipments

Commit

carrier to transport shipments

Contain

contract rate or rates for the transportation services to be provided

Assign

vehicles for continuing time or provide that the service is designed to meet shipper’s distinct needs

Retain

by carrier while in effect and for minimum of 3 years thereafter Slide22

Common Sections Found in Third-Party Contracts

Disclosure of Goods

Describes nature of the product being shipped

Special handling or temperature requirements, nature of hazard (if any) and value

Responsibility for Goods

Routing, Mode, and Method of Operation

Term, Termination, &

ModificationSlide23

Common Sections Found in Third-Party Contracts

Volume Requirements

Scope of Operation

Performance

Standards

Transit time, pick-up/delivery, damage rates, billing accuracy

Operational Standards – Indemnification

Put at end of contract

Force Majeure

If one of the parties is in breach due to Acts of God, or force of nature, protects the party so affectedSlide24

Common Sections Found in Third-Party Contracts

Billing and Payment

ALWAYS include listing of prices and charges levied by the third party in the body of the contract

Refer to other documents or tariffs may be confusing, and in some cases, illegal

Applicable Law

Assignability

Used if third-party unable to meet its vehicle requirementsSlide25

Common Sections Found in Third-Party Contracts

Breach of Contract

Defines what constitutes breach, process to be used to rectify breach, and process for termination

Consider including “incentives to improve or comply” rather than just “punish”

Dispute Resolution

Arbitration

Confidentiality