Coyle_Chapter_8__PowerPoint_Slides

Coyle_Chapter_8__PowerPoint_Slides - Chapter 8 Order...

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Chapter 8 Order Management and Customer Service Learning Objectives n After reading this chapter, you should be able to do the following: ¨ Understand the relationships between order management and customer service. ¨ Appreciate how organizations influence customers’ ordering patterns as well as how they execute customers’ orders. ¨ Realize that activity-based costing (ABC) plays a critical role in order management and customer service. ¨ Identify the various activities in the SCOR process D1 (deliver stocked product) and how it relates to the order-to-cash cycle.
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Learning Objectives (cont.) n After reading this chapter, you should be able to do the following: ¨ Know the various elements of customer service and how they impact both buyers and sellers. ¨ Calculate the cost of a stockout. ¨ Understand the major outputs of order management, how they are measured, and how their financial impacts on buyers and sellers are calculated. ¨ Be familiar with the concept of service recovery and how it is being implemented in organizations today.
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Influencing the Order ¨ This is the phase where an organization attempts to change the manner by which its customers place orders. n How they receive the order; n How they fill the order; and n How they ship the order. Order Execution ¨ This occurs after the order is received.
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Customer service : ¨ is anything that touches the customer. This includes all activities that impact information flow, product flow, and cash flow between the organization and its customers . n Philosophy ¨ Philosophy elevates customer service to an organization-wide commitment to providing customer satisfaction through superior customer service. ( Value Management)
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Customer service : Performance ¨ emphasizes customer service as specific performance measures that pervade all three definitions of customer service and address strategic, tactical, and operational aspects of order management. Activity ¨ treats customer service as a particular task that an organization must perform to satisfy a customer’s order requirements. (invoicing, product return, claims handling)
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Chapter divided into 6 sections n 1 C ustomer R elationship M anagement n 2 A ctivity B ased C osting n 3 Customer Segmentation n 4 Order Execution Process n 5 Customer Service n 6 Service Recovery concept
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n Customer relationship management : ¨ is the art and science of strategically positioning customers to improve the profitability of the organization and enhance its relationships with its customer base . ¨ is not a new concept; used by service industries such as banking, credit cards, hotels, and airline travel. (frequent flier programs) ¨ Target customers low in cost to service and very profitable. ¨ has not been widely used in the business-to business environment
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This note was uploaded on 06/01/2009 for the course SCM 301 taught by Professor Gardner,williams during the Fall '08 term at Pennsylvania State University, University Park.

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Coyle_Chapter_8__PowerPoint_Slides - Chapter 8 Order...

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