CUSTOMER SERVICES Senator Nur Bahagi THREE CS CUSTOMER

CUSTOMER SERVICES Senator Nur Bahagi@

THREE C’S CUSTOMER VALUE COST DIFFERENTIAL COMPANY COMPETITOR Senator Nur Bahagi@

DEFINITION AND SCOPE PROCESS FOR PROVIDING SIGNIFICANT VALUE-ADDED BENEFITS TO THE CUSTOMER IN A EFFICIENT WAY ACTIVITY PROCESS PERFORMANCE EFFICIENT PHIL. OF MNGT. CUSTOMERFOCUSED Senator Nur Bahagi@

STAGE OF PROCESS 1. PRE TRANSACTION 2. TRANSACTION 3. POST TRANSACTION Senator Nur Bahagi@

PRE TRANSACTION RELATE TO CORPORATE POLICIES OR PROGRAM • WRITTEN CUSTOMER SERVICE POLICY • ACCESSIBILITY • ORGANIZATION STRUCTURE • SYSTEM FLEXIBILITY Senator Nur Bahagi@

INDICATOR PERFORMANCE PRE TRANSACTION • STOCK AVAILABILITY • TARGET DELIVERY • RESPONSE TIME TO QUERIES Senator Nur Bahagi@

TRANSACTION CONCERN WITH CUSTOMER SERVICE VARIABLE DIRECTLY INVOLVE IN PERFORMING THE SERVICES • ORDER CYCLE TIME • INVENTORY AVAILABILITY • ORDER FILL RATE • ORDER STATUS INFORMATION Senator Nur Bahagi@

INDICATOR PERFORMACE TRANSACTION • ORDER FILL RATE • ON TIME DELIVERY • BACK-ORDERS • SHIPMENT DELAY • PRODUCT SUBSTITUTIONS Senator Nur Bahagi@

POST TRANSACTION ELEMENTS THAT ARE GENERALLY SUPPORTIVE OF PRODUCT WHILE IN USE • AVAILABILITY OF SPARE PART • CALL-OUT TIME • PRODUCT TRACING/WARRANTY • CUSTOMER COMPLAINTS, CLAIMS, ETC. Senator Nur Bahagi@

INDICATOR PERFORMANCE POST TRANSACTION • FIRST CALL FIX RATE • CUSTOMER COMPLAINTS • RETURNS/CLAIM • INVOICE ERROR • SERVICE PART AVAILABILITY Senator Nur Bahagi@

SERVICE STANDARD 1. ORDER CYCLE TIME 2. STOCK AVAILABILITY 3. ORDER SIZE CONSTRAINT 4. ORDERING CONVINIENCE 5. FREQUENCY OF DELIVERY 6. DELIVERY REALIBILITY 7. DOCUMENTATION QUALITY 8. CLAIMS PROCEDURE 9. ORDER COMPLETENESS 10. TECHNICAL SUPPORT 11. ORDER STATUS INFORMATION Senator Nur Bahagi@

COMPOSITE SERVICE INDEX AGGREGAT’S INDICATOR OF CUSTOMER SERVICE THAT CAN BE USED AS A MANAGEMENT TOOL CSI = SUM OF ( IW x PL) IW : IMPORTANCE WEIGHT OF SERVICE ELEMENT PL : PEREFORMANCE LEVEL OF SERVICE ELEMENT Senator Nur Bahagi@

FOCUSED ON CUSTOMER 1. CUSTOMER NEEDS ARE MORE BASIC THAN PRODUCT OR SERVICES 2. PRODUCT BECOME WORTH DUE TO SERVICES HAS ADDED VALUE TO THE CORE PRODUCT 3. PRODUCT AND SERVICES BECOME MEANINGFUL ONLY WHEN ITS AVAILABLE AND POSITIONED FROM THE CUSTOMER’S PERSPECTIVE AT THE TIME AND PLACE REQUIRED 4. VOLUME IS SECONDARY TO PROFIT Senator Nur Bahagi@

SERVICE SURROUND SERVICE CORE PRODUCT SURROUND Senator Nur Bahagi@

CUSTOMERS’ SERVICE NEED 1. IDENTIFY THE KEY COMPONENT OF CUSTOMER SERVICE 2. ESTABLISH THE RELATIVE IMPORTANCE SERVICE COMPONENTS 3. IDENTIFY CLUSTER OF CUSTOMER Senator Nur Bahagi@

SETTING CUSTOMER SERVICE PRIORITIES 1. PARETO 2. PROFIT CONTRIBUTION LOW HIGH SEEK COST REDUCTION PROVIDE HIGH AVAILABILITY V O L U M E REVIEW JIT DELIVERY PROFIT CONTRIBUTION Senator Nur Bahagi@ H I GH L O W

PRIORITIES A K E A B C Y D DEVELOP E CUSTOMER B C DEVE LOP MAINTAIN REVIEW Senator Nur Bahagi@ P R O D U C T

TYPES OF SERVICE 1. BASIC SERVICES CUSTOMER SERVICE PROGRAM UPON WHICH A FIRM BUILDS ITS FUNDAMENTAL BUSINESS RELATIONSHIP 2. ZERO DEFECT SERVICES CUSTOMER SERVICE LEADS TO PERFECT ORDER PERFORMANCE 3. VALUE ADDED SERVICES UNIQUE/SPECIFIC ACTIVITIES THAT FIRM CAN JOINTLY WORK OUT TO INCREASE EFFECTIVENESS AND EFFICIENCY Senator Nur Bahagi@

I. BASIC SERVICE CAPABILITY TO SATISFY THE CUSTOMERS AVAILABILITY PERFORMANCE Senator Nur Bahagi@ REALIBILITY

A. AVAILABILITY CAPABILITY TO HAVE GOODS (INVENTORY) WHEN IT IS DESIRED BY A CUSTOMER OPERATING STOCK Senator Nur Bahagi@ SAFETY STOCK

MEASUREMENT OF AVAILABILITY 1. STOCK OUT FREQUENCY How many times demand for specific product exceeds stock available. 2. FILL RATE Number of goods that could be fulfill promptly 3. ORDERS SHIPPED COMPLETE Number of order that could be fulfill completely and promptly Senator Nur Bahagi@

B. OPERATIONAL PERFORMANCE CAPABILITY TO GIVE THE SERVICES TO THE CUSTOMERS MEASURED BY: 1. SPEED 2. CONSISTENCY 3. FLEXIBILITY 4. MULFUNCTION/RECOVERY Senator Nur Bahagi@

SPEED ELAPSED TIME FROM WHEN AN ORDER IS PLACED UNTILL SHIPMENT ARRIVAL Senator Nur Bahagi@

CONSISTENCY ABILITY TO PERFORM ORDERS AT THE EXPECTED DELIVERY TIME OVER A LARGE NUMBER OF PERFORMANCE CYCLE COMPLIANCE TO DELIVERY COMMITMENT OVER TIME Senator Nur Bahagi@

FLEXIBILITY ABILITY TO HANDLE EXTRAORDINARY CUSTOMER SERVICE CAUSED BY: 1. 2. MODIFICATION IN BASIC SERVICE ARRANGEMENT SUPPORT OF UNIQUE SALES/ MARKETING PROGRAM 3. NEW PRODUCT INTRODUCTION 4. PRODUCT PHASE OUT 5. DISRUPTION IN SUPPLY 6. PRODUCT RECALL 7. CUSTOMIZATION Senator Nur Bahagi@

MULFUNCTION/RECOVERY ABILITY TO PREVENT MULFUNCTION OR TO ACCOMMODATE SPECIAL SITUATION CONTINGENCY PLANS Senator Nur Bahagi@

C. REALIBILTY ABILITY TO COMPLY PLANNED INVENTORY AVAILABILITY AND OPERATIONAL PERFORMANCE MEASUREMENT 1. VARIABLE 2. UNITS 3. BASE Senator Nur Bahagi@

II. VALUE ADDED SERVICES 1. CUSTOMER FOCUS SERVICES 2. PROMOTION FOCUS SERVICES 3. MANUFACTURING FOCUS SERVICES 4. TIME FOCUS SEVICES 5. BASIC SERVICES Senator Nur Bahagi@