Customer Service Operations Learning Block 3 The Order
Customer Service Operations Learning Block 3 The Order Process
Course Agenda 1. 2. 3. 4. 5. Customer Service Overview Communication Skills in Customer Service The Order Process Returns and Reverse Logistics Jobs and Legal Concerns in Customer Service 2
Learning Block Agenda 1. 2. 3. 4. 5. Systems and Technologies Customer Orders Order Tracking and Monitoring Order Process Improvements and Metrics Best Practices in Order Management
Description This learning block describes the order process and provides information about the role of customer service in executing customer orders. The activities and importance of knowing how orders are handled, managing customer relationships, and fulfilling orders are discussed. The learning block also provides an overview of procedures, processes, and strategies that are part of the order management process, along with the systems used in placing, tracking, managing, and fulfilling orders. 4
Learning Objectives • Demonstrate knowledge of the overall order management process • Understand how order management and order processing is accomplished • Recognize how firms track and monitor orders throughout the supply chain • Execute the steps in the order fulfillment process • Implement key aspects of using different technologies, systems, and tools in the order process • Evaluate the impact of effective customer service, especially in issue resolution • Create good practices for the order process
Unit 1: Systems and Technologies The order management process starts with customer request/arrival, which can range from general to specific requests on products or services. Many customers call, write, email, or ask in-person questions pertaining to the following subjects: – Product specifications – Price – Availability – Potential discounts
Order Management System (OMS) Order management systems (OMS) are used to support the order process through automation. – Provide updated inventory information – Database of vendors of customers – Record of customer returns and refunds – Information about billing and payments – Order processing records – General Ledger information
Order Management Technology Various Technologies help support the order management process: – Telephone, fax, and mail – Internet – Electronic data interchange (EDI) – Barcoding – Point of sale (POS) technology – OMS
Customer Request/Arrival • The order management process begins with customers arriving at a purchase location or otherwise requesting information from potential suppliers. These enquiries might involve pricing, product specifications, availability, or delivery timelines • In the Business to Consumer (B 2 C) supply chain, the starting point is the customer’s physical arrival • In the Business to Business (B 2 B) supply chain, the order process may begin through – Sales call – Customer Accessing supplier’s websites or catalogs – Customer may attend a showroom or DC and place an order
Customer Order Entry • Customer order entries involve customers informing retailers and suppliers of goods about the products they wish to purchase. • The main aim of the order entry process is to ensure the order is accurate, carried out in a timely fashion, and communicated throughout the supply chain (Chopra & Meindl, 2004).
Customer Order Fulfillment Customer order fulfillment includes the steps in ensuring customers receive – the correct products – in the right quantities – at the scheduled time and – at an appropriate level of quality.
Customer Order Receipt • During this process, customers check the quantity and quality of delivered products; if they have incomplete or damaged orders, the details are recorded and suppliers are notified. If this occurs, customers may withhold payment until deficiencies are corrected. • Customers may also require a corrective action report from the supplier to indicate the deficiencies that occurred and the corrective actions taken. Customers then record that they received their correct orders in the correct quantities.
Customer Order Invoices • Invoices state the amount owed and payment terms, such as the number of days customers have to pay the invoice, any agreed-upon reductions in costs for paying early, penalties for late payment, and form of payment required • When invoices are received by customers, they are checked against the stipulated terms and conditions. If satisfactory, the invoices are paid. • In a B 2 B environment, companies use purchasing cards, also known as PCards, which are company charge cards that allow goods and services to be purchased without using traditional purchasing processes and eliminating the need to issue invoices for payment.
Unit 3: Order Tracking and Monitoring The following steps are typically carried out when fulfilling, tracking, and monitoring customer orders: – – – – Orders are initiated by customers Orders are validated for correctness Customer service enters the order in the system Inventory management assesses availability of sufficient quantities Picking slips are initiated Warehousing operations picks the required inventory Quality checks are performed to ensure there is no damage Orders are packed in appropriate packing materials Labels are printed and attached to boxes Boxes are organized in a staging area for transportation Orders are transported The transportation system is updated and customer service is notified Customer service provides shipping data and status to customers Feedback is requested from customers about their order satisfaction
Order Tracking and Monitoring
Unit 4: Order Process Improvements and Metrics • A number of fulfillment-related metrics are used to determine how well companies are able to meet the criteria of a perfect order: orders that are delivered to the right place, at the right time, in the right condition, in the right package, in the right quantity, with the right documentation, and with the right invoice. • Indicators which provide guidance on achieving the perfect order and on the fulfillment process include order fill rate, order cycle time, on-time delivery, inventory accuracy indicators, and order-to-cash cycle time.
Examples of Key Metrics To ensure they are being both efficient and effective when dealing with their customers, most companies have specific performance metrics to gauge success in achieving customer satisfaction. Metrics should focus on customer needs and expectations. All companies should track the following key metrics: – – – Order-Picking Errors Product shipping errors Standard or planned order cycle time Average time to complete an order Number of orders returned Order costs
Unit 5: Best Practices in Order Management The following are good order management practices: – Communication with customers – Consolidation of orders – Inventory Management – Automation of the process
Summary
Practice Questions 1. All of the following activities are part of the customer order fulfillment process except: a) b) c) d) Order entry Shipping Forecasting Returns 2. Which of the following is the starting point of the customer order process? a) b) c) d) Customer order entry Customer request/arrival Customer invoicing Customer order receiving
Practice Questions 3. Which of the following defines successful customer order fulfillment? a) b) c) d) Orders are filled and sent to suppliers on time, in the correct quantities, with no damage, and within the specified delivery timeframe Orders are filled and sent to the order fulfillment center on time, in the correct quantities, with no damage, and within the specified delivery timeframe Orders are filled and sent to transportation on time, in the correct quantities, with no damage, and within the specified delivery timeframe Orders are filled and sent to customers on time, in the correct quantities, with no damage, and within the specified delivery timeframe 4. Which document states how much a customer owes, including any stipulated reductions in costs for paying early? a) b) c) d) Invoice Receipt Bill of lading Material release
Practice Questions 5. Which of the following best describes the importance of implementing metrics? a) b) c) d) All QA programs require metrics Provides a way for a company to gauge customer satisfaction It is the only method to access order accuracy They support the use of computer resources 6. An order management system (OMS) typically provides information about each of the following except: a) b) c) d) Product specifications Inventory availability Information about invoicing and payments Information about customer returns and refunds
Practice Questions 7. Which of the following best describes customer relationship management (CRM)? a) b) c) d) CRM is best used to identify customer leads CRM is essential when working with suppliers CRM includes all the interactions between companies and their customers CRM refers to software that helps manage customers 8. Which of the following is a key concept that should be understood when developing a CRM strategy? a) b) c) d) Only suppliers can benefit from the relationship Only customers can benefit from the relationship Suppliers and customers can benefit from the relationship Only investors in companies can benefit from the relationship
Practice Questions What technology features the direct exchange of information between computers? a) b) c) d) Internet Electronic data interchange (EDI) Fax machines ERP system What is the primary benefit of implementing point of sale (POS) technology? a) b) c) d) It reads barcodes It simplifies the checkout process It is used to update inventory usage as goods are purchased, and to relay this information to other parts of organizations, including warehouses and suppliers It is used to impress customers with the latest technology
- Slides: 24
