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Logistics and Supply Chain Management
Notes Self Assessment
Fill in the blanks:
1. The objective of …………………… initiatives is to penetrate specific markets and generate
profitable transactions.
2. The …………………… marketer should stress on retaining customers.
3. A …………………… who is a professional, like a chartered accountant, will be in a better
position to understand the savings account opening norms in a bank than an illiterate
farmer.
4. Service transactions and the quality of service delivery depend a lot on both the provider
and the customers carrying out their roles seamlessly as designed by the blueprints of
…………………….
3.2 Customer Service
Marketing identifies the appropriate logistical performance. The critical strategic issue is to
determine the combination of services and their desired format that will support and stimulate
profitable transactions.
Although most senior managers agree that customer service is important, they find it difficult to
explain exactly what it is and does. Two interpretations commonly expressed are easy to do
business with and sensitive to customer needs. While such generalizations have appeal from a
qualitative perspective, it is difficult to interpret what “easy to do business with” means for
firms that deal with numerous customers on a daily basis. To develop a customer service strategy,
it is necessary to develop a working definition of customer service.
LaLonde and Zinszer have researched various ways that customer service can be viewed: (1) as
an activity, (2) in terms of performance levels, and (3) as a philosophy of management.
Viewing customer service as an activity suggests that it is capable of being managed. Thinking
of customer service in terms of performance levels has relevancy providing it can be accurately
measured. The notion of customer service as a philosophy of management exemplifies the
importance of customer-focused marketing. All three dimensions are important to understand
what is involved in successful customer service.
A broad definition of customer service should embody elements from all three perspectives.
Customer service is a process for providing significant value-added benefits to the supply chain
in a cost-effective way.
It is clear that excellent customer service performance seems to add value for all members of the
supply chain. Thus, a customer service program must identify and prioritize all activities important
to accomplish operating objectives. A customer service program also needs to incorporate
measures for evaluating performance. Performance needs to be measured in terms of goal
attainment and relevancy. The critical question in planning a customer service strategy remains.
Does the cost associated with achieving the specified service goals represent a sound investment
and, if so, for what customers? Finally, it is possible to offer key customers something more than
high-level basic service. Extra service beyond the basics is typically referred to as value-added.
Value-added services, by definition, are unique to specific customers and represent extensions
over and above a firm’s basic service program.
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