Chapter 9 Customer Service Management

Customer service management
The design and execution of the processes that provide customers with products and services they desire
6 Basic rights when providing service
Amount, product, place, time, condition, info
Product availability
The capacity to have inventory present when a nd where it is desired by a customer
Basic service
The suppliers ability to provide product availability, lead time performance and service reliablity
Fill rate
Measures the impact of stockouts over time or over multiple orders from customers
Unit fill rate
The % of the total quality of units ordered by customers that are actually delivered
Line fill rate
Measures service performance as the % of purchase order lines that are filled in total.
Order fill rate
It measures the % of orders that are shipped complete with all items ordered by customer
Lead time
The amount of time that passes btw the beginning and ending of a set of activities
order to delivery lead time
The time that passes form the instant the customer placed an order until the instant that the customer receives the product.
Product design lead time
Time interval needed to conceptualize design and test a new product
order lead time
Time required to place an order for a product plus the time to schedule the order so that operations can begin working on it
Procurement lead time
Time associated with obtaining the inputs required for processing the order
Production lead time
Begins the moment the production or service system begins working on an order
Delivery lead time
Measures the time consumed by the distribution system including warehousing and transportation.
Service reliability
Refers to the firms ability to provide customers with critical info regarding inventory an ad order status
Perfect order
The notion that an order should be delivered with out failure in any attribute
customer satisfaction
Meeting or exceeding customer expectations
Customers usually expect:
Reliability, responsiveness, access, communication, credibility, security, courtesy, competence, tangibles, knowing the customer
Knowledge gap
Reflects the managers lack of knowledge or understanding of customers
Standards gap
Exists when internal performance standards do not adequately or accurately reflect customer expectations
Performance gap
The difference btw standard and actual performance
Communications gap
The difference btw companies actual performance and what a company communicates about its performance
Perception gap
Exists when customers perceive performance to be different than actually provided
Satisfaction gap
The difference btw perceived performance and the customers expectation regarding performance
Customer success
Shifts the emphasis from customers expectations to customers real requirements, helping customers to meet their real business requirements
Customer relationship management
Software and information tech based approach used to collect and analyze customer data from numerous sources for the purpose of developing strategically appropriate relationships with customers