Order Management • Order picking and assembly includes all activities from when an appropriate location is authorized to fill the order until goods are loaded aboard an outbound carrier
Order Management • Order picking and assembly – Often represents the best opportunity to improve the effectiveness and efficiency of an order cycle – Can account for up to 2/3 of a facility’s operating cost and time Source: Susan Lacefield, “Ten Tips for Faster Picking”, Logistics Management , July 2005, 71-76.
Order Management • Examples of Order Picking and Assembly technology: Handheld scanners Radio-frequency identification (RFID)
Order Management • Examples of Order Picking and Assembly technology: Voice-based order picking Pick-to-light
Order Management • Order delivery is the time from when a carrier picks up the shipment until it is received by the customer.
Customer Service • Customer service is “the ability of logistics management to satisfy users in terms of time, dependability, communication , and convenience.” Source: Roger A. Kerwin, Steve W. Hartley, and William Rudelius, Marketing , 9 th ed. (Boston, MA: McGraw-Hill/Irwin, 2009), Chapter 16. • Customer service is much more difficult for competitors to imitate than price cuts or other competitive strategies
Customer Service • Four dimensions of customer service include: – Time – Dependability – Communication – Convenience
Customer Service Performance Measure – Orders received on time – Orders received complete – Orders received damage – Orders filled accurately – Orders billed accurately
Managing Customer Service • Four specific customer service considerations include: – Customer profitability analysis (CPA) – Establishing customer service objectives – Measuring customer service – Service failure and recovery
Managing Customer Service •
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