Consistency dependability value it more than speed To achieve it you need to

Consistency dependability value it more than speed to

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Consistency (dependability ): value it more than speed. To achieve it, you need to remove variability of order cycle. Flexibility (agility) : responsiveness of order cycle.  Transparency:   you   customers   want   perfection-   a   reality   that   led   to   the development of the  “perfect order”  concept. Transparent service can  help your customers compensate when the unexpected happens Modern technology such   as   bar   codes,   RFID   tags,   and   satellite   tracking   makes   real-time transparency feasible and affordable . Order transparency  improves planning, execution, and evaluation.  Protection against disruption (service recovery): because service failures are inevitable, you need to establish contingency plans to recover from disruptions. For those disruptions that do occur, having considered the “what-if” scenarios before   the   service   failure   occurs   will   help   you   recover   more   quickly   and effectively.   Some   companies   resolve   service   failures   so   successfully   that customer satisfaction actually increases following the disruption. This reality is known as the  “service recovery paradox” Operational   efficiency :   to   efficiently   provide   the   service   customers   need. Customers expect to pay as little as possible. A simple two-step process to match service offerings to customer needs: 1) identify the relevant cost-service tradeoffs 2) run the numbers to assess the cost and benefits of service offerings.  Methods for establishing a customer service strategy 1) Determine   channel   service   levels   based   on   knowledge   of   consumer reactions to stock-outs 2) Examine cost/revenue trade-offs 3) Use ABC Analysis for customers and products
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4) Conduct a customer service audit Key   accounts   merit   consistently   outstanding   service,   while   transactional relationships deserve fair, efficient service.  Pareto’s Law (The 80-20 rule) 80% of your revenues are driven by your most important 20% of customers. Strategic key accounts (typically 5-10%) make up a huge share of sales, profits, and   growth.   They   are   classified   as   “A”   customers   and   receive   the   most customized service. The other key  accounts  are labeled “B” customers  and receive high levels of service. The remaining 80% (transactional) of customers are labeled “C” and receive high levels of standardized service.  Applying Pareto’s law typically includes two steps 1) Classify companies by sale 2) Modify classification based on strategic issues (qualitative)  Customer profitability analysis The goal of logistics customer service is to support profitable customer relationships. 
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