Supply Chain Management Principles LB 7 Customer Service

Supply Chain Management Principles LB 7: Customer Service Operations Overview

LB Objectives • State the common elements of customer service • • LO 1 operations Discuss the difference between internal and external customers Recognize the importance of a positive first impression Explain the characteristics of successful ecommerce customer service State the four elements of supply chain customer service 10 -2

Customer Service Overview • Customer service excellence applies to both internal and external customers • Internal customers work within your company • External customers buy your products and services • Employees are ambassadors of the company and portray important roles such as: • Giving first impressions, developing working relationships, communicating personally and electronically. • Elements of customer service are: Time, Dependability, Communication, & Convenience LO 2 10 -3

Customer Service • Customer service is a key competitive advantage • It focuses on the fastest and most cost-efficient ways to support customers • It is every interaction a company has with its customers or brand including use of media such as : • • • LO 1 Phone Email Chat Web Social media 10 -4

Customer Service Skills • Efficient customer service ambassadors are proficient in the following: • The order process (CRM) • Communications • Returns and reverse logistics • Challenging customers • Legal and regulatory concerns LO 1 10 -5

The Order Process & Customer Relationship Management • The order process involves processing orders, managing • • LO 2 customer relationships, & fulfilling orders. Involves teamwork as it is often the first experience with a customer Order cycle involves receiving and fulfilling customer orders Customers begin the order cycle When orders are placed, companies must ensure they are filled on time, completely, and without quality defects 10 -6

The Order Cycle & Performance Metrics • To ensure employees are being efficient and effective, companies use performance metrics to gauge and measure success or failure in meeting defined objectives • Companies document all interactions with customers to assist in issue resolution • The following good practices help in the order fulfillment process: • • LO 2 Clear and frequent communication Order consolidation Inventory management Order automation 10 -7

Order Processing • Issue resolution impacts customers decision to continue to do business with you LO 3 10 -8

Relationship Management • Customer Relationship Management (CRM) provides information about customers, sales, marketing effectiveness & market trends to improve customer service • CRM facilitates: Efficiency, Cost Reduction, Increases in Profitability, and Streamlines Sales & Marketing processes • Business relationships form the interaction between customers and suppliers over a period of time • Customer Life Cycle (CLM) describes the steps a company takes to find, manage, retain, and develop interactions with customers LO 1 10 -9

Communications • Communication is the transfer of information. • Effective communication involves knowing your audience, • • LO 5 your message, and most appropriate form of communication known as channel of communication Listening requires active participation to understand Writing must avoid confusion because written communication is essentially permanent Visual Communication uses images to persuade, entertain, inform, & enlighten customers or potential customers about products and services Barriers to communication include: Language differences, cultural differences, lack of personal familiarity, & preconceived notions 10 -10

Returns & Reverse Logistics • Reverse logistics is the return of products deemed unwanted by customers or defective • Reverse logistics include: Shipping, Testing, Repairing, Returning, Recycling, or Discarding products • Returned items are no longer limited to damaged products or incorrect shipments. Today, company policies allow customers to return products they are dissatisfied with • Customer service representatives must be skilled when dealing with customers in the reverse logistics process in other to retain them as clients LO 5 10 -11

Reverse Logistics Process • The returns process begins with good customer service • The representative issues the customer a Return Material Authorization (RMA) number that approves the return and identifies it for processing • The return can result in: Re-inventory for resale, repair or refurbishment for return to the customer, or disposal if the product has no value • Performance metrics helps companies improve the quality of products and how returns are handled • Metrics include: Disposition cycle times, quantity and value of products reclaimed & resold, percentage of material recycled, waste, & handling costs per return item LO 5 10 -12

Challenging Customers • To overcome challenging customers, representatives must practice: Patience, and good communication skills • Challenging & defensive customers fall into the following categories: • Angry or openly antagonistic and aggressive • Lacking good communication skills and the ability to express their thoughts • Arrogant or supreme attitude • Prone to making unwarranted personal attacks • Overly talkative and lacking the will or ability to listen LO 5 10 -13