- **Order size constraints**: Some companies may have
Customer service and logistics
* customer service and customer service requirements can
and will differ not just between industries and companies but
additionally between the market segments a business might
serve.
CORE PRODUCT
- concerns the item itself
PRODUCT SORROUND
- very important in determining the final demand for
a product
The Pareto 80/20 rule:
- 80% impact of the product
- 20% cost
7 RIGHTS OF CUSTOMER SERVICE:
 Customer
 Time
 Place
 Condition
 Quantity
 Cost
 Product
COMPONENTS OF CUSTOMER SERVICE IN LOGISTIC:
 Transaction-related elements
- specific actions taken during the process ( ex: making
sure deliveries happen on time)
 Functional attributes
- about the overall experience of ordering and
receiving the product ( ex: ease of order taking or how
easy it is for customers to place their orders )
3 CATEGORIES OF TRANSACTION ELEMENTS:
 PRE-TRANSACTION ELEMENTS
- things that happen before the actual purchase takes place.
Here are some examples:
- **Written customer service policy**: This could be a
document outlining what customers can expect from your
company, like how returns are handled or what happens if an
order is delayed.
- **Accessibility of order personnel**: This refers to how
easy it is for customers to reach someone who can help them
with their order, like having a phone number or email
address clearly displayed.
- **Single order contact point**: Having one person or
department handle all customer inquiries or orders can make
things smoother for the customer.
- **Organizational structure**: How your company is
organized internally can affect how smoothly orders are
processed. For example, if there are clear roles and
responsibilities, it's easier to know who to contact if there's
an issue.
- **Method of ordering**: This refers to how customers
can place their orders, whether it's through a website, over
the phone, or in person.
limits on how much or how little customers can order at one
time.
- **System flexibility**: This relates to how adaptable your
ordering and fulfillment systems are to changes or special
requests from customers.
 TRANSACTION ELEMENTS
- physical transaction of purchasing and receiving the product
Here are some examples:
- **Order cycle time**: How long it takes from when an
order is placed to when it's delivered.
- **Order preparation**: The process of getting the order
ready for shipment.
- **Inventory availability**: Making sure you have enough
stock to fulfill orders.
- **Delivery alternatives**: Giving customers options for
how they want their order delivered, like standard shipping
or express delivery.
- **Delivery time**: How long it takes for the order to
reach the customer after it's been shipped.
- **Delivery reliability**: Ensuring that orders are
delivered when promised.
- **Delivery of complete order**: Making sure all items in
the order are delivered together.
- **Condition of goods**: Ensuring that products arrive in
good condition without damage.
- **Order status information**: Providing customers with
updates on the status of their order, like when it's been
shipped or when it will arrive.
 POST-TRANSACTION ELEMENTS
- things that happen after the customer has received their
order
Here are some examples:
- **Availability of spares**: If your product requires
replacement parts, making sure those are readily available.
- **Call-out time**: How quickly your company responds to
service calls or requests for assistance.
- **Invoicing procedures**: How invoices are sent out and
processed.
- **Invoicing accuracy**: Making sure invoices are correct
and match the order.
- **Product tracing/warranty**: Providing information on
how customers can trace products or make warranty claims.
- **Returns policy**: Your company's policy on returns and
exchanges.
- **Customer complaints and procedures**: How
customer complaints are handled and resolved.
- **Claims procedures**: Procedures for handling claims
for lost or damaged items.
4 MULTIFUNCTIONALS DIMENSIONS:
 time – usually order fulfilment cycle time;
 dependability – guaranteed fixed delivery times of
accurate, undamaged orders;
 communications – ease of order taking, and queries
response;
 flexibility – the ability to recognize and respond to a
customer's changing needs.
Service quality is all about how well the customer's
expectations match up with what they actually experience.
So, if a customer expects a certain level of service and they
get it, then we say the service quality is good. But if there's a
difference between what they expect and what they get,
that's called a "service quality gap."
Gap 5: actual service—perceived service gap: this is the
difference between the service that the supplier is providing
and the service that the customer thinks is being received.
This gap may, typically, be caused because the supplier and
the customer are measuring service in a different way.
 (Explanation: This gap is the difference between the service
the supplier provides and what the customer thinks they're
receiving. It often stems from differing perspectives on what
constitutes good service.
 Example: A restaurant serves a meal exactly as ordered, but
the customer finds it unsatisfactory because they expected
larger portion sizes based on the menu descriptions. Here,
the gap exists between what the restaurant provides and
what the customer perceives.
Consequently, customer expectations aren't met due to the
gap between what management perceives and what the
actual service standard is.
• Gap 1: customer expectation–management perception gap:
this is the difference between the service that the customer
expects and the service level that the supplier thinks that the
company wants. This gap is usually caused because the
supplier does not understand the real customer
requirements.
 Explanation: This gap occurs when what customers expect
from a service differs from what the company thinks
customers want.
 Example: A customer expects fast food to be delivered
within 30 minutes, but the company believes customers are
okay with delivery times of up to an hour. So, the company
doesn't prioritize quick delivery, causing a gap between
what the customer wants and what the company thinks they
want.

Gap 4: service delivery—external communication gap: this is

the difference between the actual service that is provided
and the promised level of service that was communicated to
the customer. This gap may be caused by a misunderstanding
in communication.
 Explanation: This gap occurs when the actual service
provided doesn't match the level of service promised to the
customer through communication channels.
 Example: A telecommunications company advertises high-
speed internet, but customers frequently experience slow
connection speeds. The gap exists between what the
company promises in its advertisements and what it delivers
in reality.

• Gap 3: service standard—service delivery gap: this is the

a sixstepplan to identify key customer
difference between the actual service that is provided and
the planned level of service based on the service specification service components and then to design and maintain
that has been set. The cause for this gap may be inefficiency a suitable customer service package:
within the delivery service.
 Explanation: This gap arises when the actual service
provided falls short of the service standards set by the
company.
 Example: A hotel promises guests a room cleaned daily, but
due to staff shortages, rooms are only cleaned every two
days. This discrepancy between promised service standards
and actual delivery creates Gap 3.

• Gap 2: management perception—service standard gap: this

is the difference between the service specification that is set
and the supplier management assessment of customer
service requirements. This gap is likely to be caused by an
inadequate initial operational set-up.
 Explanation: This gap happens when management's
understanding of customer service requirements doesn't
match the actual service standards set by the company.
 Example: A company sets a standard of responding to
customer emails within 24 hours, but the management
believes customers are fine with responses within 48 hours.

1. Identify the main elements of service and identify
suitable market segments.
( The main elements of service are identified through market
research techniques such as personal and group interviews to
determine customer preferences, aiming to focus resources
on key factors that customers value, while also identifying
suitable market segments based on different customer types
to tailor services accordingly; for instance, a hotel might
conduct interviews to discover that business travelers
prioritize fast check-in/out and reliable Wi-Fi, while families
prioritize spacious rooms and child-friendly amenities.)
types of customer service study:
The most common approach for the major element of a
study is likely to be a detailed questionnaire-based customer
survey. This can be undertaken in a number of different ways
including telephone, mail/post, face to face or webbased.
Survey or questionnaire design is a vital part of the overall
process, and when putting together a questionnaire it is
sensible to refer to one of the many books that have been
written that address the topic specifically. The major
steps can be summarized as follows:
Sure, let's simplify the process of designing a survey or
questionnaire:
1. **Clarify the purpose and objectives**:
- Know exactly what you want to achieve with the survey
and what information you need to gather.
2. **Identify specific information required**:
- Figure out the exact details or data you need from the
survey to meet your objectives.
3. **Select the most appropriate survey type**:
- Choose the type of survey that best fits your goals and
audience, whether it's online, phone-based, or in-person.
4. **Determine resources required**:
- Understand what tools, people, and budget you'll need to
conduct the survey effectively.
5. **Decide who should conduct the survey**:
- Determine who will be responsible for carrying out the
survey, whether it's internal staff or an external agency.
6. **Decide who should complete the survey**:
- Identify the target audience or participants who should be
answering the survey questions.
7. **Identify key customer/market segments**:
- Recognize different groups of customers or markets that
may have varying needs or preferences.
8. **Identify key service elements to include**:
- Determine the important aspects of your service that you
want feedback on from the survey.
9. **Prepare the question and answer format**:
- Create clear and concise questions that will yield useful
information. Make sure answer options cover all possibilities.
10. **Design the analysis and reporting format**:
- Plan how you'll analyze the survey responses and how
you'll present the findings to stakeholders.
11. **Determine the sample size and selection**:
- Decide how many responses you need for statistically
significant results and how you'll select participants.
12. **Pilot the survey**:
- Test the survey with a small group to identify any issues
or confusion with the questions or format.
13. **Adjust and finalize**:
- Make any necessary changes based on the pilot feedback,
then finalize the survey for distribution.
By following these steps, you can ensure that your survey is
well-designed, effectively captures the information you
need, and provides valuable insights for decision-making.
Advantages and Disadvantages of different
survey approaches:

2. Determine the relative significance of

each service element.
(

CHANNELS OF DISTRIBUTION:
Physical Distribution Channel:
- This is how products physically move from where they're
made to where customers can buy them.
- Usually, this means moving products from factories to retail
stores, shops, or even directly to customers' homes.
Trading or Transaction Channel:
- This type of channel is about the process of buying and
selling products, rather than physically moving them. It's
about negotiating deals and transferring ownership from the
manufacturer to the consumer.
Example: When a store buys a batch of smartphones from a
manufacturer, there's a negotiation involved in terms of price
and quantity. Once the deal is agreed upon, ownership of the
smartphones is transferred from the manufacturer to the
store.
1. **Manufacturer direct to retail store**:
- The manufacturer sends products directly to the retail
store without any intermediaries, usually in full vehicle loads.
**Example**: A furniture manufacturer delivering sofas
directly to a furniture store.
2. **Manufacturer via manufacturer's distribution
operation to retail store**:
- The manufacturer stores products in warehouses and then
delivers them to retail stores using their own delivery
vehicles.
**Example**: A brewery stores beer in a warehouse and
then delivers it to local pubs using their own trucks.
3. **Manufacturer via retailer distribution centre to retail
store**:
- Manufacturers deliver products to retail distribution
centers, where they're consolidated with other products and
then sent to retail stores using the store's delivery vehicles.
**Example**: A clothing manufacturer sends clothes to a
retail distribution center, which then sends them to
individual stores owned by the same company.
4. **Manufacturer to wholesaler to retail shop**:
- Manufacturers sell products to wholesalers, who then sell
them to retail shops.
**Example**: A toy manufacturer sells toys to a
wholesaler, who then sells them to small toy stores.
5. **Manufacturer to cash-and-carry wholesaler to retail
shop**:
- Manufacturers sell products to cash-and-carry
wholesalers, where small retail shops can purchase products
in bulk and pick them up themselves.
- Cash-and-carry businesses allow retailers to buy
products directly from wholesalers without delivery services.
**Example**: A food manufacturer sells snacks to a cash-
and-carry wholesaler, where small convenience stores can
buy them in bulk and pick them up from the warehouse.
6. **Manufacturer via third-party distribution service to
retail shop**:
- Manufacturers use third-party distribution companies to
store and deliver products to retail shops.
**Example**: A furniture manufacturer hires a logistics
company to store and deliver their products to various
furniture stores.
7. **Manufacturer via small parcels carrier to retail shop**:
- Manufacturers use small parcels carriers to deliver small
packages directly to retail shops.
**Example**: An online cosmetics brand ships individual
makeup products directly to retail stores using a small parcels
carrier.
8. **Manufacturer via broker to retail shop**:
- A broker acts as an intermediary between the
manufacturer and retailer, focusing on marketing products
rather than physical distribution.
**Example**: A food broker works with multiple food
manufacturers and sells their products to various retail
shops, using a third-party distribution company for delivery.
*Imagine you're a small food manufacturer creating delicious
snacks, but you're not very experienced in getting your
products into stores. This is where a broker comes in.
- **Broker's Role**: A broker is like a middleman between
you (the manufacturer) and the grocery stores. They
specialize in marketing and selling products to retailers. They
know the ins and outs of the industry and have connections
with various stores.
- **How It Works**: You, as the manufacturer, might not
have the time or resources to go to each grocery store
individually to persuade them to carry your snacks. So, you
hire a broker. The broker takes your products and pitches
them to different grocery store chains, negotiating deals to
get your snacks on their shelves.
brokers are mainly concerned with selling your products.
They use their marketing skills to showcase the benefits of
your snacks to retailers, convincing them that it's worth
stocking them.
- **Example**: Let's say you make healthy energy bars. You
hire a food broker who knows the managers at several
grocery store chains. The broker sets up meetings with these
managers and presents your energy bars as a nutritious and
popular snack option. After negotiations, they secure deals
with the stores to carry your bars, helping your business grow
without you having to handle the sales directly.
another different types of
distribution channel: ( bypassing retail shop)

1. Mail Order:
- This is when customers order goods from a catalogue and
receive them by mail or through a parcels carrier.
Example: A popular mail-order company is L.L.Bean, which
sells outdoor gear and clothing through its catalogues and
website. Customers order items from the catalogue or online
and receive them by mail or through a parcels carrier.

2. Factory Direct to Home:

- Products are sold directly from the factory to the customer's
home, often through direct selling methods( ex: Door-to-Door
Sales, In-home Demonstrations) or advertisements.
Example: Buying customized furniture directly from Ethan
Allen's factory and having it delivered to your home.

3. Internet and Shopping from Home:

- Customers shop online using the internet and receive
deliveries at home.
Example: shopee, lazada, shein

4. The factory-to-factory or business-to-business (B2B) -

distribution channel involves the movement of industrial
products between different businesses. This could include
raw materials, components, or part-assembled products.
Elaboration:
In this channel, businesses rely on each other to obtain the
materials or components needed to manufacture their
products.
For example, a car manufacturer may need to source parts
such as engines, tires, and electronics from various suppliers
to assemble a complete vehicle.