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By Dealers
Var. Rank Num Description
Overall Impt. All Dealers
Mfr. 1
Mfr. 2
Dealer Evaluations of Manufacturers
Mfr. 3
Mfr. 4
Mfr. 5
Mfr. 6
M. SD M. SD M. SD M. SD M. SD M. SD M. SD
16
Updated and current price data, specifications and promotion 6.0 0.9 5.7 1.3 4.1 1.5 4.8 1.4 6.3 0.9 4.9 1.7 4.3 1.9
materials provided by manufacturer
• Stockout levels • Order information • Elements of order
cycle • Expedited shipments • Transshipment • System accuracy • Order convenience • Product substitution
Internal Audit Questions cont.
3-9 b
• How are these measures derived from corporate information flows and the order processing system?
• What is the internal customer service reporting system?
Evaluate Customer Perceptions Differentiate Channel Levels & Market Segments
Identify Opportunities Determine Marketing Services Mix & Levels
Overall Importance Compared To Selected Performance Of Major Manufacturers Evaluated
6.1 0.9 4.6 1.9 3.0 1.6 3.7 1.7 5.1 1.7 3.0 1.7 3.1 1.7
5
94
Special pricing discounts available on contract/project quotes 6.1 1.1 5.4 1.3 4.0 1.7 4.1 1.6 6.0 1.2 4.7 1.5 4.5 1.8
CHAPTER 3 Customer Service
Cost trade-offs in Marketing and Logistics
MARKETING
Price
Inventory carrying costs Lot quantity costs
Product
Place/customer service levels
size
5 Special order
6 Ask here
again
Another store
Yes Substitute
?
NoBaidu Nhomakorabea
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Source: Douglas M. Lambert and Jay U. Sterling, “Developing Customer Service Strategy,” unpublished manuscript. All Rights reserved.
Internal Audit Questions
6.4 0.8 5.6 1.1 4.7 1.4 5.0 1.3 5.8 1.1 5.1 1.2 4.4 1.5
3
90
Competitiveness of price
6.3 1.0 5.1 1.2 4.9 1.4 4.5 1.5 5.4 1.3 4.4 1.5 3.6 1.8
4
40
Advance notice on shipping delays
8
47
Timely response to requests for assistance from manufacturer's 6.0 0.9 5.2 1.7 4.6 1.6 4.4 1.6 5.4 1.6 4.2 2.0 4.3 1.7
sales representative
9
14
Order cycle consistency (small variability in promised versus 6.0 0.9 5.8 1.0 4.1 1.5 4.8 1.4 6.3 0.9 3.6 1.7 4.4 1.7
6
3
Overall manufacturing and design quality of product relative to 6.0 0.9 6.0 1.0 5.3 1.3 5.1 1.2 6.5 0.8 5.2 1.3 4.8 1.5
the price and range involved
7
1
9
Ability of manufacturer to meet promised delivery date (on-time 6.4 0.8 5.9 1.0 4.1 1.6 4.7 1.6 6.6 0.6 3.7 1.8 3.3 1.6
shipments)
2
39
Accuracy in filling orders (correct product is shipped)
Order processing and information
costs
Order processing and information
costs
Transportation costs
Warehousing costs
Elements of Customer Service
Pretransaction elements
complete) -- made to order product (contract orders)
50
33a Price range of product line offering (e;g., low, medium, high
5.0 1.3 4.4 1.5 4.6 1.6 5.1 1.5 5.2 1.4 4.3 1.6 3.9 1.6
Relationship Between Customer Service and Inventory Investment
600
500
400
300
200
100
0
75
80
85
90
95 100
Stages of the Customer Service Audit
Internal Audit
External Audit
price levels) for major vendor
101 77
Store layout planning assistance from manufacturer
2.9 1.6 4.2 1.7 3.0 1.5 3.4 1.6 4.7 1.6 3.0 1.4 3.4 1.2
Note : Mean (average score) based on a scale of 1 (not important) through 7 (very important).
estimated shipping dates on contract/project orders
12
49a Completeness of order (% of line items eventually shipped
6.0 1.0 5.5 1.2 4.3 1.2 4.7 1.3 6.0 1.1 4.4 1.4 4.0 1.6
actual delivery, i.e., vendor consistency meets expected date).
10
4b
Length of promised order cycle (lead) times (from order
6.0 1.0 6.1 1.1 4.5 1.4 4.9 1.5 6.2 1.1 4.3 1.7 3.7 2.0
• Written statement of policy
• Customer receipt of policy statement
• Organization structure
• System flexibility • Management
services
Transaction elements
Relative Company B Performance
Accuracy in filling orders
6.42
5.54
5.65
Ability to expedite emergency orders in a
6.25
4.98
5.23
fast, responsive manner
Action on complaints (e.g., order servicing, 6.07
Methods of Establishing a Customer Service Strategy
• Determining channel service levels based on knowledge of consumer reactions to stockouts
• Analyzing cost/revenue trade-offs • Using ABC analysis of customer service • Conducting a customer service audit
submission to delivery) for base line/in-stock ("quick ship")
product
11
54
Accuracy of manufacturer in forecasting and committing to
6.0 1.0 5.5 1.2 4.0 1.6 4.3 1.4 6.3 1.1 3.8 1.7 3.5 1.6
3-9 a
• How is customer service currently measured?
• What are the units of measurement? • What are the performance standards? • What is the current level of attainment?
Importance And Performance Evaluations 3-9 c For Selected Customer Service Attributes
No. 1 2 3 4
5 6 7 8
9 10
Attribute
Importance
Performance Evaluation
Company A
Customer
Model of Consumer Reaction to a Repeated Stockout
No
Switch stores
? Yes
Yes
Yes
Substitute ? No
Switch brand
?
No
1 Higher
Switch price ?
2 Same
3 Lower
4 Other
• How do the functional areas of the business perceive customer service?
• What is the relation between these functional areas in terms of communication and control?
Posttransaction elements
• Installation, warranty, alterations, repairs, parts
• Product tracing
• Customer claims, complaints, returns
• Temporary replacement of products
Var. Rank Num Description
Overall Impt. All Dealers
Mfr. 1
Mfr. 2
Dealer Evaluations of Manufacturers
Mfr. 3
Mfr. 4
Mfr. 5
Mfr. 6
M. SD M. SD M. SD M. SD M. SD M. SD M. SD
16
Updated and current price data, specifications and promotion 6.0 0.9 5.7 1.3 4.1 1.5 4.8 1.4 6.3 0.9 4.9 1.7 4.3 1.9
materials provided by manufacturer
• Stockout levels • Order information • Elements of order
cycle • Expedited shipments • Transshipment • System accuracy • Order convenience • Product substitution
Internal Audit Questions cont.
3-9 b
• How are these measures derived from corporate information flows and the order processing system?
• What is the internal customer service reporting system?
Evaluate Customer Perceptions Differentiate Channel Levels & Market Segments
Identify Opportunities Determine Marketing Services Mix & Levels
Overall Importance Compared To Selected Performance Of Major Manufacturers Evaluated
6.1 0.9 4.6 1.9 3.0 1.6 3.7 1.7 5.1 1.7 3.0 1.7 3.1 1.7
5
94
Special pricing discounts available on contract/project quotes 6.1 1.1 5.4 1.3 4.0 1.7 4.1 1.6 6.0 1.2 4.7 1.5 4.5 1.8
CHAPTER 3 Customer Service
Cost trade-offs in Marketing and Logistics
MARKETING
Price
Inventory carrying costs Lot quantity costs
Product
Place/customer service levels
size
5 Special order
6 Ask here
again
Another store
Yes Substitute
?
NoBaidu Nhomakorabea
Source: Clyde K. Walter, “An Empirical Analysis of Two Stockout Models,” unpublished Ph. D. Dissertation, Ohio State University, 1971.
Source: Douglas M. Lambert and Jay U. Sterling, “Developing Customer Service Strategy,” unpublished manuscript. All Rights reserved.
Internal Audit Questions
6.4 0.8 5.6 1.1 4.7 1.4 5.0 1.3 5.8 1.1 5.1 1.2 4.4 1.5
3
90
Competitiveness of price
6.3 1.0 5.1 1.2 4.9 1.4 4.5 1.5 5.4 1.3 4.4 1.5 3.6 1.8
4
40
Advance notice on shipping delays
8
47
Timely response to requests for assistance from manufacturer's 6.0 0.9 5.2 1.7 4.6 1.6 4.4 1.6 5.4 1.6 4.2 2.0 4.3 1.7
sales representative
9
14
Order cycle consistency (small variability in promised versus 6.0 0.9 5.8 1.0 4.1 1.5 4.8 1.4 6.3 0.9 3.6 1.7 4.4 1.7
6
3
Overall manufacturing and design quality of product relative to 6.0 0.9 6.0 1.0 5.3 1.3 5.1 1.2 6.5 0.8 5.2 1.3 4.8 1.5
the price and range involved
7
1
9
Ability of manufacturer to meet promised delivery date (on-time 6.4 0.8 5.9 1.0 4.1 1.6 4.7 1.6 6.6 0.6 3.7 1.8 3.3 1.6
shipments)
2
39
Accuracy in filling orders (correct product is shipped)
Order processing and information
costs
Order processing and information
costs
Transportation costs
Warehousing costs
Elements of Customer Service
Pretransaction elements
complete) -- made to order product (contract orders)
50
33a Price range of product line offering (e;g., low, medium, high
5.0 1.3 4.4 1.5 4.6 1.6 5.1 1.5 5.2 1.4 4.3 1.6 3.9 1.6
Relationship Between Customer Service and Inventory Investment
600
500
400
300
200
100
0
75
80
85
90
95 100
Stages of the Customer Service Audit
Internal Audit
External Audit
price levels) for major vendor
101 77
Store layout planning assistance from manufacturer
2.9 1.6 4.2 1.7 3.0 1.5 3.4 1.6 4.7 1.6 3.0 1.4 3.4 1.2
Note : Mean (average score) based on a scale of 1 (not important) through 7 (very important).
estimated shipping dates on contract/project orders
12
49a Completeness of order (% of line items eventually shipped
6.0 1.0 5.5 1.2 4.3 1.2 4.7 1.3 6.0 1.1 4.4 1.4 4.0 1.6
actual delivery, i.e., vendor consistency meets expected date).
10
4b
Length of promised order cycle (lead) times (from order
6.0 1.0 6.1 1.1 4.5 1.4 4.9 1.5 6.2 1.1 4.3 1.7 3.7 2.0
• Written statement of policy
• Customer receipt of policy statement
• Organization structure
• System flexibility • Management
services
Transaction elements
Relative Company B Performance
Accuracy in filling orders
6.42
5.54
5.65
Ability to expedite emergency orders in a
6.25
4.98
5.23
fast, responsive manner
Action on complaints (e.g., order servicing, 6.07
Methods of Establishing a Customer Service Strategy
• Determining channel service levels based on knowledge of consumer reactions to stockouts
• Analyzing cost/revenue trade-offs • Using ABC analysis of customer service • Conducting a customer service audit
submission to delivery) for base line/in-stock ("quick ship")
product
11
54
Accuracy of manufacturer in forecasting and committing to
6.0 1.0 5.5 1.2 4.0 1.6 4.3 1.4 6.3 1.1 3.8 1.7 3.5 1.6
3-9 a
• How is customer service currently measured?
• What are the units of measurement? • What are the performance standards? • What is the current level of attainment?
Importance And Performance Evaluations 3-9 c For Selected Customer Service Attributes
No. 1 2 3 4
5 6 7 8
9 10
Attribute
Importance
Performance Evaluation
Company A
Customer
Model of Consumer Reaction to a Repeated Stockout
No
Switch stores
? Yes
Yes
Yes
Substitute ? No
Switch brand
?
No
1 Higher
Switch price ?
2 Same
3 Lower
4 Other
• How do the functional areas of the business perceive customer service?
• What is the relation between these functional areas in terms of communication and control?
Posttransaction elements
• Installation, warranty, alterations, repairs, parts
• Product tracing
• Customer claims, complaints, returns
• Temporary replacement of products