Discuss the Four Dimensions of Customer Service in a Company.

Topics: Logistics, Customer service, Customer Pages: 7 (2427 words) Published: May 29, 2011
Title: Discuss the four dimensions of customer service in a company. Give examples to illustrate your points.

It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics management to satisfy customers. There are four dimensions of customer service, which are time, dependability, communication, and convenience. If companies have an understanding of what customers want in terms of these four dimensions of customer service, we believe that they can then offer such services to create a competitive advantage for their firms. Here we will show the four dimensions of customer service respectively as the following.

The first dimension is time. The order cycle is a major component of the time dimension of customer service. At the risk of sounding redundant, businesses today are looking to reduce order cycle times-longer cycle times translate into higher inventory requirements. The time factor is usually order time from the perspective of seller looking at customer service. The buyer usually refers to the time dimensions as the lead time or replenishment time. Successful logistics operations today have high degree of control over most, if not at all, of the basic elements of lead time, including order processing, order preparation and order shipment. By effectively ensuring that order cycles will be of reasonable length and consistent duration, the seller firms have improved customer service levels. Here is a case to illustrate the point. Procter & Gamble is the world's largest consumer goods companies. In 1992, Procter & Gamble entered the Chinese market. Its products needed timely and quickly transported to the market and to quickly seize the important part of the Chinese market. P&G's demand for logistics services on the response time, service reliability and quality protection system in a very high demand. Around the logistics needs of Procter & Gamble, Paogong Company designed and developed the business processes, strict process management system, established a logistics network throughout China, and the whole processes for P&G is to provide value-added services. For the planning, Paogong designed the implementation of logistics management systems, optimized business processes, integrated logistics supply chain to ensure that the goods in the same methods, models and standards to operate during transport. After the goods were send to the destination, there were uniform employees which have been trained in a vocational tanning received, unloaded, delivered the goods, provide P&G door to door and "one-stop" service, and though the quality management according to strict GMP standards and SOP procedures for operational management, products were quickly, accurately and timely send to sales outlets across the country. By promoting of the cooperation between the two companies, Paogong established a high standard of information technology systems to help manage and provide comprehensive and effective information platform. Storage, transportation and other critical logistics information in real-time online tracking have been achieved. P&G achieved the seamless electronic data so that P&G and Paogong effectively integrated the processes and information. Therefore, it made the logistics more efficient, streamlined, and systematic. The strict and high quality logistics services of Paogong, greatly reduced the logistics cost for Procter...
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