DPL10023 Fundamentals of Logistics Management: Chapter 2 Customer Service

Practice flashcards covering the definition, elements, dimensions, and strategies of customer service within logistics management based on Chapter 2 revision notes.

What is the definition of Customer Service?

Activities provided before, during, and after a transaction to satisfy customer needs and create value.

What are the three main stages or elements of customer service?

Pre-transaction, Transaction, and Post-transaction.

What are the main goals of implementing effective customer service?

Customer Satisfaction, Customer Loyalty, Better Company Image, Competitive Advantage, and Increased Profit.

What does the 'Pre-transaction' element of customer service involve?

Activities before the customer buys, such as establishing customer service policies, delivery information, and product information.

What are examples of 'Transaction' elements in logistics?

Transportation, inventory availability, order processing, and shipment tracking.

What are examples of 'Post-transaction' services provided after a customer receives an order?

Product returns, warranties, complaint handling, and customer support.

What are the four dimensions of customer service represented by the acronym TDCF?

Time, Dependability, Communication, and Flexibility.

In the TDCF dimensions, what does 'Dependability' mean?

Being reliable and consistent by providing the right product in the right quantity, at the right time, and in the right condition.

What are five common customer reactions to stockouts?

Cancel order, buy substitute product, change store/supplier, wait until available, or complain to the company.

What is the Cost vs. Revenue Trade-off in customer service?

The balance between providing higher service levels (which increase costs) and maintaining service quality to satisfy customers while remaining profitable.

According to the ABC Analysis or Pareto Law, what is the $80/20$ rule?

$20\%$ of important customers or products generate $80\%$ of sales or profit.

What are the three steps in a Customer Service Audit?

Measure (collect data on satisfaction and complaints), Evaluate (analyze delivery performance and service problems), and Improve.

Name four metrics used to measure customer service performance.

On-time delivery, customer satisfaction level, number of complaints, and order accuracy.

What factors should a company adjust for in Global Customer Service?

Different Culture, Different Language, and Different Expectation.

What characterizes the dimension of 'Flexibility' in customer service?

The ability to satisfy different customer needs through options like express/weekend delivery, special packaging, or cash on delivery.

What is the 'Flow of Success' starting from good customer service?

Good customer service leads to happy customers, which leads to repeat purchases, resulting in higher sales and profit.

What are common mistakes to avoid when studying customer service in logistics?

Confusing the elements of PTP, ignoring communication, not balancing cost and service level, and writing long answers without key points.