Order Management and Customer Service Concepts

Flashcards covering key concepts from the lecture notes on order management and customer service.

What are the two phases of order management?

Influencing the Order and Order Execution.

What does CRM stand for and what is its purpose?

Customer Relationship Management; it aligns company resources with customer needs to improve satisfaction and profitability.

What are the four steps in Customer Relationship Management (CRM)?

1. Segment customers by profitability. 2. Identify the product/service package valued by each segment. 3. Develop and execute processes to deliver those expectations. 4. Measure performance and continuously improve.

What is the Order-to-Cash (OTC) cycle?

It includes activities from inquiry and order entry to shipping, invoicing, and payment.

What are the essential measurements for order execution?

Timeliness, accuracy, and reliability.

What is Activity-Based Costing (ABC)?

A method that assigns costs based on activities and resources actually consumed.

How are customers segmented by profitability in ABC?

1. Protect: Most profitable, high efficiency. 2. Danger Zone: Least profitable, often a loss. 3. Build: Low sales, low cost-to-serve with growth potential. 4. Cost Engineer: High sales, high costs.

What are the three definitions of customer service?

1. Philosophy: Organization-wide commitment to customer satisfaction. 2. Performance Measures: Metrics like cycle time and on-time delivery. 3. Activity: Anything that touches the customer.

What are the four key elements of customer service?

1. Time, 2. Dependability, 3. Communication, 4. Convenience.

What are the outcomes of stockouts?

1. Buyer waits. 2. Buyer places a back order. 3. Seller loses current sales. 4. Seller loses future customers.

How are the costs of stockouts measured?

As back order costs, lost sales, or lost customers.

What factors influence customer service in order management outputs?

1. Product Availability. 2. Order Cycle Time. 3. Logistics Operations Responsiveness. 4. Logistics System Information. 5. Postsale Logistics Support.