LOGISTIC CUSTOMER RELATION MANAGEMENT

Part 1: What are the seven elements of customer service in logistics?

Elaborate and give one example per element. (1,000 words)
Logistics customer service is a part of a firm’s overall customer services offering,
customer service elements that are specific to logistics operations including
fulfilment, speed, quality, and cost.
They are seven elements in customer service as per below: -
1. Pre-transaction elements
2. Transactions elements
3. Post-transaction elements
Pre-transaction elements
Pre-transaction elements are about what happens before the sale.
 Written Customer Service Policy
 Organizational Structure
 Method Of Ordering
 Single Order Contact Point
 Accessibility Of Order Personnel
 Order Size Constraints
 System Flexibility

Written Customer Service Policy

Outlines how the business will communicate with customers, including the tone and
language used in all communications. It may also outline the specific channels
through which customers can contact the business, such as email, phone, and chat
support. Make sure the policy is easy to find, read, and understand, and use simple
and friendly language. Also, can mention about benefits of our policy to customers
such as how they can protect their rights, provide value or ensure quality.

Organizational Structure

The method by which workflow through an organization. It allows groups to work

together within their individual functions to manage tasks. An organizational structure
defines how job titles, roles, and responsibilities are assigned within a company. It
helps determines who reports to whom, and who makes decisions about what.

Method Of Ordering

As requirements arise, authorized individuals may place orders for specific quantities
of items covered in this contract. Regardless of the method of ordering used, the
contract and any subsequent modifications determine performance time and dates.
Performance under this contract is not to begin until receipt of the purchase order,
Procurement Card order, or other notification to proceed by the County Purchasing
Agent and/or County agency to proceed.

Single Order Contact Point

Refer to a person or department that is designated to handle all requests or inquiries

coming from a client. It helps clients solve their problems effectively and promptly.
The customer service team handles all complaints and inquiries via various
communication channels, such as phone or others.

Accessibility Of Order Personnel

Accessibility is to make sure all orders are smooth and can be fulfilled by an
organization.

Order Size Constraints

Determine the order in which the resources run. Configure an order size constraint to
determine the order in which resources start and stop. Common types of resource
constraints include limits on raw materials, machine capacity, workforce capacity,
inventory investment, storage space, or the total number of orders placed.
System Flexibility

Learning directly from the customer what needs changing or improving, how this can
be best carried out, and reintegrating these new ideas back into the customer
experience process. Also being able to adapt to external factors, such as market
conditions, competitors, regulations, or technologies. A business that is efficient can
reduce operational costs, increase its margins, and gain a competitive advantage.
For Example;
Many important activities must take place before a successful sale or service. Think
of going into a restaurant for a nice juicy steak.
The steak and the salad do not just arrive automatically on the plate once ordered.
They have to be correctly sourced (purchasing), using money (the financial aspects
of logistics) and stored in an appropriate fridge (cold storage).
The information system should reflect that one has 85 300-gram steaks soaking in a
sweet-and-sour marinade, ready for customers’ consumption in the evening. You
may even have a number of the basic ingredients for my brother’s Greek salad pre-
chopped.
The pre-washed lettuce and the dressing would be added to these ingredients so as
to present the salad to the customer efficiently while it is fresh. Next time you go into
a restaurant during non-peak hours and the service is very slow, remind yourself that
they either do not plan well in advance, or they do not have a lot of customers, and
have to do everything once an order has been placed .
Transactions Elements
Transactions elements are about what happens during the actual sale
The elements directly related to the physical transaction are those that are most
commonly concerned with logistics.

 Condition Of Goods
 Inventory Availability
 Order Preparation
 Service/Order Cycle Time
 Delivery Alternatives
 Delivery Time;
 Delivery Reliability
 Delivery Of Complete Order
 Order Status Information.
During a sale or the provision of a service, certain key activities occur that can
influence the success of the transaction. Effective businesses make certain that they
have adequate stock levels so as to satisfy the customers’ needs, that is, there is
appropriate planning and forecasting for the actual sale.
An example of a case is like this below:
When customers walk into a shop they expect the most commonly purchased brands
to be in stock. If one walks into a 7Eleven in Subang Jaya one expects to find Coca-
Cola. One expects to find Coffee in Starbucks at Shah Alam, M&M chocolates in a
sweet shop in Petaling Jaya, and Titleist golf balls in a golf shop in Kuala Lumpur.
Key skills during the actual transaction include:
a. Correctly entering or recording the order information.
b. Treating your customer as well as possible within the circumstances (using
appropriate interpersonal skills)
c. Assessing the needs of the customer correctly and matching these needs with
a product or service.
d. Following up on customers as quickly as possible (for example, one would
want to process shipments to customers as efficiently as possible or expedite
them)
e. Making it easy for the customers to place an order efficiently and accurately
f. Supplying suitable or compatible substitute products when the customer's
choice is out of stock.
g. Following up on any outstanding customer order problems or concerns
(rounding off the interaction and dealing with the customers correctly
h. Acknowledging and recording any feedback from the customs, whether
positive or negative, in the best way possible way (your customer is probably
the best possible tool for correcting inadequacies in your customer service.
The post-transaction elements
These involve those elements that occur after the delivery has taken place. It is often
said the best times to test a company, customer services are not before or during the
actual customer encounter but afterwards, the goods are sold. How efficient are the
company's staff at solving the problems that arise during an encounter and after the
encounter has taken place?
For example:
Based on my experience, I buying a new Tefal pressure cooker from Aeon Mall. A
few months later my pressure cooker didn’t work as usual and I suspected that
something was not working properly. Then I call their customer service to launch the
report and they give instructions with the report number. Whether I can send the
pressure cooker nearby to my house. The next day I send the product to my nearest
house and they give me a copy of the report to do collection after their technician
complete the check and repair my pressure cooker. A few days customer service call
me to collect the pressure cooker and before I go they ask me to check whether the
pressure cooker functioned or not.
Would I buy from them again? Most definitely I will because they took care of this
small problem and if they could do that then they will probably be able to take care of
the big problem, too. Attention to detail and matching the terms of the warranty.

Key post-transaction skills include;

a. The installation of the product as promised
b. The honouring of the warranty. Do not promise too much in your product
warranty because honouring the warranty is expensive. Rather under-promise
and over-deliver than over-promise and under-deliver and lose the customer
in the process.
c. The ability of your company to repair a sold item that has broken.
d. The ability to supply a part for a product to the customer after the sale.
e. The ability to trace supplied product to the original supplier when it is faulty.
f. The ability or willingness of the company to replace a faulty or defective
product.
g. The ability to handle customer claims, complaints and repairs after the sale.
This is often what shows the true logistical efficiency of the company

Part 2: What is the connection of logistics and customer service in

an organisation of your choice. Explain the customer service from
a logistics perspective. (1,000 words)