Effective management customer service for logistics

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good morning everyone we are now in the party of our book which is the elements of logistic system so today we will tackle about the chapter 7 entitled demand management order management and customer service so here in our chapter 7 we have here our learning objectives first is to explain demand Management in demand forecasting models second is to examine the ordering cycle in its four components third is to understand the four dimensions of customer service as they pertain to Logistics and fourth is to familiarize you with the select managerial issues associated with the customer service demand management demand and economics refers to the consumer's desire and willingness to pay a price for a specific goods or services so demand management is the creation across the supply chain and it markets of a coordinated flow of demand a key component in demand management is demand or sales forecasting which refers to an effort to project future demand demand management is a planning methodology used by a company to forecast to project to project and to plan on how to meet the demands of their customers in terms of their products and services so here in demand management it is a technique used by a company to meet and satisfy their customer needs demand forecasting is helpful in nature stock and make to order when we say make to stock is it a situation in which a Finnish goods are produced prior to receiving a customer's order and when we say make to order it is a situation in which if Finnish goods are produced after receiving a customer's order example of make to stock is during Christmas season and New Year so during that time most of the fruit vendors will going to stock for fruits because they already know that during Christmas season and Christmas are the most in-demand products are the fruits because that is the most common food that is being prepared during that season example of make to order so in Jollibee they are applying this demand forecasting which is the make to order in their product called vegan sandwich so this chicken sandwich is made to order it is because not all the time it is most in demand so they decided to make to order this product after receiving a customer's order demand forecasting models there are three basic types of forecasting model first is judgmental second is time series third is cause and effect for casting judgmental forecasting it involves using judgment or intuition and is preferred in situations where there is limited or no historical data such as new product introduction so when new product is introduced into the market basically there were limited or there were no historical data about that product judgmental forecasting is a technique used in surveys and analogs so this survey for casting uses questionnaires in order for them to know about the customer preference and intentions so next is the time series for casting when you say time series forecasting is that future demand is solely dependent on the past demand so this forecasting model is using the historical datas on the past demand in order for them to know about the future demand of a product or Services next we have the cost and effect for casting it assumes that one or more factors are related to the demand and the relationship between cost and effect can be used to estimate the future demand example is when the price of a product increases basically the demand will decrease it is the example of cause and effect for casting so you can already forecast that the demand will decrease due to increase in price demand forecasting issues forecasting accuracy refers to the relationship between actual and forecasted demand and accuracy can be affected by various considerations demand forecasting will have a positive impact in the organization but this demand forecasting will also have a negative impact especially here in the demand accuracy so we all know that the actual and the forecasted demand are not 100 accurate so I'm the next reporter I will discuss you about order management so are you management refers to management of the various activities associated with the order cycle so order management this process is tracking and fulfilling customers order like the way it handles the seller and ordinary customers from transmittal to delivery and other cycle refers to the time from when a customer places an order to win the goods are received so means customers order cycle of receive is like parcel or order as a carrier or seller that but you should know how to order daily routine customers so we have a four components of other cycle the first is order transmitter order transmitter refers to the time from when the customer places an order until the seller received the order so order turns metal so so the seller is ready to ship or prepare the paper to ship the parcel and tell them young order so the next is order processing refers to the time from when the seller receives an order until unappropriate location such as a warehouse is as authorized to fill the order so order processing so modern initial um process how to pack and also assemble some order to delivery and also priorities the next is order to Edge I refers to classifying orders ing to pre-established guidelines so that a company can prioritize how orders should be filled so um identify so the next is order picking and assembly so and the next stage of the order management process includes all activities from when and appropriate location a warehouse is authorized to fill the order until goods are loaded abroad and outbound carrier so I'm order picking in assembly prepare and products determine on product and customers so the next is order delivery which refers to the time from when a transportation carrier picks up the shipment until it is received by the customer so order delivery customer and young order from delivery Rider customer service ability of logistic management to satisfy users in terms of time availability communication and convenience as we all know that logistic management is about making sure things get from one place to another efficiently and effectively when we say satisfying users it means [Music] or what we call the users are happy with the process this can be achieved through the fourth dimension of customer service what are the four these are the time dependability communication and convenience so howman in what way so let's talk about the first about the time time refers to the period between successive events and clearly the order cycle is an excellent example of the time dimension of customer service so time means delivering the things quickly and on time so the users don't have to wait too long for example if you are all the pockets online you expect it to the arrive within a certain time frame dependability refers to the availability of service encounter it consists of three elements namely consistent order cycle safe delivery and complete deadly Billy dependability means more arrived as expected and in good condition for example if you order a cake for a party you want it to arrive fresh and undamaged right order fail rate or the percentage can be completely and immediately built from existing stock is one way of measuring the completeness of delivery so this means it is a measure of how many orders can be filled with items that that are available in stock right now for example if a store has 100 stars from a certain product but take they only have 80 percent of those products in stock then their order favorite with would be 80 percent this means they can immediately fulfill 80 of the orders from their existing stock so if high-end order flow rate means that now on customers item item on time and in full in which can lead to customer satisfaction next is communication effective communication should be a two-way instance between seller and customer with the goal of keeping both parties in form two-way communication between seller and customers certainly benefited from technological advances just as cell phones smartphones and the internet therefore communication means giving the users informed about where the things are the and when they can expect receive them for example with your flight is delayed you want to know why and when you can't speak to the park next convenience is a component of customer service processes on the ease of doing business with the seller and lastly opinions this means making it easy for the users to receive their things in a way for example appearing different delivery options such as home delivery pickup points or express delivery managing customer service first specific managerial consideration in customer service establishing customer service objectives measuring customer service customer profitability analysis and service failure and Recovery versus establishing customer service objectives objectives that the means by which calls are to be achieved this involves sitting clear and specific goals for the level of customer service that the company aims to provide objectives should be smart smart stands for specific measurable attainable reliable and time-bound that is the meaning of smart next benchmarking which refers to process that continuously identifies understand and adapts outstanding processes from inside and outside an organization benchmarking means a way of for a company to learn from others by comparing its performance with others in the same industry measuring customer service control is the process of taking corrective action when measurements indicate that the goals and objective of customer service are not being achieved this means using metrics and tools to track customer satisfaction and and identify areas for improvement these are the measuring customer service customer service dimension time dependability communication and convenience to measure the time is order cycle time inquiry spans time so dependability is perfect order on time the delivery communication is customer compliance order status and information convenience is return process response to emergency situation customer profitability analysis customer profitability analysis or CPA refers to the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers this involves analyzing the value that each ad each customer brings to the business and making the decision based on this information that's all thank you