Service Management-Courier Service

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MSc OR/BAC | Courier Services|
Managing Business Operations| SERVICE OPERATIONS MANAGEMENT - group 5|

Service Definition2
Service Classification3
The Volume Measure (Silvestro)3
Other Service Classification Models4
Service Design5
What is the philosophy behind the service design?5
What to deliver to courier service customers?6
How to deliver?7
The blueprint diagram7
Customer actions7
Onstage activities8
Backstage activities8
Support functions9
Management functions9
Strategic Links10
The Cycle of Failure10
Perpetuating the cycle11
Strategies for breaking the Cycle of Failure12
Winning Assumptions12
Common Elements of Strategy12
Service Productivity13
Operational vs. Customer Productivity14
Trade-off between Customer Productivity and Operational Productivity14 Cultural Issues within Courier Delivery15
Hofstede Cultural Dimensions Model15
APPENDIX A : Customer Contact in Courier services18

Service Definition
Courier services are a prime example of contradiction to service intangibility. Courier services can be described as hybrid services where physical possessions are distributed as part of the provision. As a result, such services undermine a number of issues relating to intangibility. Courier services do not need to ‘describe the invisible’. Courier services such as DHL and FedEX are able to use vivid interactive imagery to communicate with potential consumers and convey the service concept, overcoming potential communication problems as associated with pure service operations (Verma, 2008). Courier services cannot however provide a sample of the service until all infrastructures and delivery linkages are operational, and thus suffer from problems relating to service specification and copyright, with various imitators free to compete at their will (Balachandran, 2004). Heterogeneity

Naturally, heterogeneity is a factor to greatly influence the efficiency of courier services. Companies such as FedEX are faced with continuous and colossal challenges in delivering their "absolutely, positively has to be there overnight" business plan. Traffic delays, breakdowns, rising fuel costs and strikes for example, restrict such organisation’s ability to standardise their processes and maintain consistency throughout (Martorano, 2010). At the same time, the service is customised according to route and consumer requirement, making heterogeneity extremely complex and hard to manage. Developments in IT however have helped to provide courier companies with scheduling and dynamic distribution resource allocation to ensure maximum customer experience (Davies, 1993) as well as the quality of the service delivered in terms of the ‘moment of truth.’ Inseparability

As you would expect, courier services are not inseparable operations, where the consumer will request the service at a different time from it being rendered. The service process is not instant, but can last for long durations, and the consumer may never be involved in the service supply after it has been requested. This allows such firms to alter systems processes at times of needed flexibility without the consumer being affected. Customer contact during the service production is minimal, but interaction will however, always occur. When a parcel reaches its destination, the recipient will experience the outcome of the service. It is then still important for such organisations to ensure that although not instant, customer interaction be pinnacle to service quality. Couriers rely on word of mouth and advertising to encourage consumer loyalty over social exchange, meaning the quality of service must always suffice to deliver exactly what is promised (Lawler, 2001). Perishability

Courier services are cannot be stocked and used at a later date. They must be performed when requested, where lack of...
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