Page 80 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 3: Customer Accommodation

3.6 Keywords Notes

Availability: It is the capacity to have inventory when it is desired by a customer.
Customer Satisfaction: It is the degree to which customer expectations of a product or service
are met or exceeded.
Customer Service: It is a process for providing significant value-added benefits to the supply
chain in a cost-effective way.

Customer: A person, company, or other entity which buys goods and services produced by
another person, company, or other entity.
Fill Rate: It measures the magnitude or impact of stockouts over time.

Logistics: Logistics is that part of the supply chain process that plans, implements and controls
the effective forward and reverse flow and storage of goods, services, and related information
between the point of origin and the point of consumption, in order to meet the customer’s
requirements.

Marketing: Marketing is the process of communicating the value of a product or service to
customers.
Operational Flexibility: It refers to a firm’s ability to handle extraordinary customer service
requests.
Rapid Response: Rapid response is concerned with a firm’s ability to satisfy customer service
requirements in a timely manner.

Service Reliability: It involves the combined attributes of logistics and concerns a firm’s ability
to perform all order-related activities, as well as provide customers with critical information
regarding logistical operations and status.
Stockout Frequency: It is the probability that a stockout will occur.
Variance: Variance is an unexpected event that disrupts performance of the system.

3.7 Review Questions

1. How does logistics help in improving customer satisfaction?

2. How can the level of logistical service be measured?
3. What is meant by availability in logistics customer service? Provide examples of the
different ways to monitor a firm’s performance in availability.

4. Compare and contrast speed, consistency, and flexibility as operational performance
activities. In some situations, is one activity more critical than others.
5. What is meant by value-added services? Why these services are considered essential in a
customer success program?
6. “Marketing identifies the appropriate logistical performance.” Elucidate.
7. Discuss the operational measures specify the expected performance cycle.

8. How will you measure the Customer Satisfaction?
9. Highlight Model of Customer Satisfaction.
10. How will you achieve Customer Success?

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