Customer Service from a Logistics Perspective: Strategy Development

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This report provides a comprehensive analysis of customer service from a logistics perspective, emphasizing the development of effective customer service strategies. It explores the integration of customer service with logistics systems, highlighting the importance of combining excellent customer service with efficient operations in departments such as shipping, production, and quality control. The report delves into the key elements of efficient logistics customer service, focusing on customer interaction, communication channels, and the importance of meeting customer expectations regarding delivery time, cost, and product quality. It examines the impact of logistics on customer service strategy, including the roles of suppliers, sub-suppliers, and intermediaries in the supply chain. The report also discusses the importance of customer satisfaction, anticipation of customer needs, and the integration of various departments to ensure customer success. The conclusion emphasizes the need for a customer-centric approach in which the entire supply chain addresses the changing requirements of end customers, leading to high customer satisfaction and business success.
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Running head: CUSTOMER SERVICE FROM A LOGISTICS PERSPECTIVE
Development of Customer Service Strategy
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CUSTOMER SERVICE FROM A LOGISTICS PERSPECTIVE 1
Introduction
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.
Process of Customer Service and its key elements from a logistics perspective
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).
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CUSTOMER SERVICE FROM A LOGISTICS PERSPECTIVE 2
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,
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CUSTOMER SERVICE FROM A LOGISTICS PERSPECTIVE 3
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.
Impact on development of the Customer Service Strategy
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
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CUSTOMER SERVICE FROM A LOGISTICS PERSPECTIVE 4
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.
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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: http://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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