Introduction to Global Supply Chain ManagementModule Nine:

Customer Service In TheAge of Globalization

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Class Agenda

• Value Propositions, The Customer Experience & Customer Service

• Internal & External Customers• Customer Service design for different

business models• KPI’s to measure Customer Service

performance

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The Company’s “Value Proposition”

• A Value Proposition is a combination of all the things that a company does to entice customers to purchase their products or services

• Elements of a V.P. may include:– Employee knowledge & attitude– Pre-purchase service & support– Product characteristics, features &

quality– Price– Purchase service & convenience

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Value Propositions & The Customer Experience

• Elements of a V.P. may include (cont.):– Sales-related policies & procedures– Delivery method & lead time– Billing accuracy– Post-purchase service & support– Product warranties– Returns policy– “Ease of Doing Business”

• The Value Proposition is what drives and influences the quality of the “Customer Experience”

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The Customer Experience

• The “Customer Experience” represents the overall impression that a client has upon completing a purchase– An on-line purchase of shoes– Going grocery shopping– Buying raw materials from a vendor

• The Customer Experience should be a function of the Value Proposition

• The quality of the Customer Experience (output) depends on its inputs

• Inputs that create outputs are a key characteristics of a process

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The Service Component Of The Customer Experience Process

• Customer Service is composed of all of the client-facing activities a company engages in before, during and after a sale– In-store sales representative– Product engineer at a client’s factory– Product installation team– Technical support via chat– 1-800 telephone representative

• These activities, or, “Touch Points,” must be clearly identified as part of crafting the Value Proposition & Customer Experience

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The Service Component Of The Customer Experience Process

• Each Touch Point must enhance the overall Customer Experience– Generate positive interaction

• Customer service should be a reflection of “The Voice of The Client”– Identify the reasonable expectations a

customer would have given the business model

– Seek to surpass those expectations

• The first step in that process is to identify who the customer really is– Internal & External customers

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Internal Customers &Global Supply Chain Management

• Internal customers are the departments and people in an organization that rely on colleagues to complete their portion of the Value Proposition

• This concept is based on the idea that within a process (and a company), one person’s output becomes another person’s input

• The service provided to internal clients always impacts the service given to external clients

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Internal Customer Relationships &Global Supply Chain Management

• Examples of internal customers include:– Purchasing professionals depend on

the logistics department for timely delivery

– Sales people need the accounting department to run credit checks on new customers quickly

– The factory relies on the MRP group to have raw materials available for production

– Everyone depends on the I.T. department to make sure all of the company’s technology works

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Customer Service Characteristics ForInternal Customers

• Understand how specific outputs impact other departments & activities

• Have a process oriented mind set• Anticipate and act upon issues before

they happen• ALWAYS live up to commitments• Deliver bad news early

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Customer Service Characteristics ForInternal Customers

• Share knowledge & experience• Don’t waste other people’s time

– Be prepared for meetings

• Always follow up• Timely response to emails and phone

calls– No voice mail, answer the phone!

• DO YOUR JOB WELL!!!

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External Customers &Global Supply Chain Management

• External customers are those parties in a supply chain that actually purchase goods and/or services from a company

• The expectations of external clients are driven by the nature of the product and how it is sold

• In a global supply chain environment, products are bought and sold in a variety of ways– “Traditional” B2B sales– B2B on-line sales– “Traditional” retail sales– B2C on-line sales– “Omni-Channel”

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Customer Service Design:Traditional B2B Sales

• Customer Service starts with the first contact by the salesperson– The “Sales Cycle” forms a big part of

customer service – Quotations/bid process through

negotation, close, product delivery, billing & payment

• Service levels from other departments during the Sales Cycle matter– Timely credit approval by accounting– Coordination with logistics for

delivery– Technical support for installations and

post installation service– Post-sale warranty, product

maintenance, upgrades, etc.

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Customer Service Design:B2B On-Line Sales

• Complete and updated on-line catalogue of products

• Clear prices– No hidden charges

• Availability of chat support• 1-800 number as option for questions• Product availability clearly stated• Mulitple delivery options

– Email alerts with delivery updates– On-line delivery tracking

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Customer Service Design:B2B On-Line Sales

• Shipping & Customs procedures for international orders

• Backorder information– Email alerts for backorders

• Easy-to-use check out process– Add/remove items quickly from cart

• Credit limit warnings• “Running tally” for purchase value

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Customer Service Design:B2B On-Line Sales

• Print options for invoices, et al • Goods delivered on time• Complete/correct orders• No damaged or missing ítems• Convenient returns policy

– Invoice credit

• Accurate billing

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Customer Service Design:Traditional Retail Sales

• Product availability• Accurate pricing

– Price tag matches advertised price– Price tag matches the scanned price

on the register

• Knowledgable sales people• Products easy to find• Well organized & laid out store• Minimal “dwell time” for customers• Short check out process• Easy returns process• Omni-Channel options

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Customer Service Design:B2C Sales

• Complete and updated on-line catalogue of products

• Clear pricing– No hidden charges

• Promotional/Sale items prominently displayed

• Availability of chat support• 1-800 number as option for questions• Product availability clearly stated

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Customer Service Design:B2C Sales

• Mulitple delivery options– Third party delivery capability– Email alerts with delivery updates– On-line delivery tracking

• Shipping & Customs procedures for international orders

• Backorder information– Email alerts for backorders

• Easy to use check out process– Quick removal of items from cart– Fast “order review” option

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Customer Service Design:B2C Sales

• Secure credit card payment tool• Gift card payment option• Goods delivered on time• Complete/correct orders• No damaged or missing ítems• Convenient returns policy

– Customer-printed shipping label functionality

– Invoice credit

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Customer Service Design:Omni-Channel

• “Omni-Channel” is a practice whereby clients have multiple options for the purchase, delivery and/or return of goods

• Used for B2B and B2C– Customers buy on-line with goods

delivered to home or business– Customers buy on-line and pick up at

store or warehouse– Customers buy at store and have

goods delivered to home or business– Customer buy on line but return

goods to store

• Customer service has to support all of these options

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Customer Service KPI’s:Quantitative & Qualitative Measures

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Customer Service KPI’s:Quantitative Measures

• Number and percentage of incomplete orders

• Quantity of backorders• Time transpired on filling back orders• Instances of incorrect merchandise• Shipments with damaged goods• Over/under quantities

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Customer Service KPI’s:Quantitative Measures

• Number and percentage of late deliveries

• Number of delays in customer pick-ups (omni-channel)

• Instances of incorrect billing• Occurences of incorrect paperwork• Number of rejected/returned goods

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Customer Service KPI’s:Quantitative Measures

• Number of lost customers• Number of negative on-line reviews• Average length of C.S. calls• Number of calls to resolve one issue• Number of logged complaints

received• Length of resolution process

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Customer Service KPI’s:Qualitative Measures

• Ranking of overall Customer Experience

• Price vs. Value ranking• Opinion on knowledge level of sales

people• Quality of on-line support

– Chat

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Customer Service KPI’s:Qualitative Measures

• Impression of pre-sales support• Ranking of post-sale support• Depth of technical knowledge• Responsiveness & follow-up• Effectiveness of problem resolution

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Customer Service KPI’s:Qualitative Measures

• “Good Manners” Index• Likelihood of returning• Probability of “Liking”• Experience with Omni-Channel

options

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End of Module Nine

Congratulations!!!

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