Organisational Structure & Customer Service

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TOPIC: ORGANISATIONAL STRUCTURE AND CUSTOMER SERVICES:

TOPIC : ORGANISATIONAL STRUCTURE AND CUSTOMER SERVICES

ORGANISATIONAL STRUCTURE:

ORGANISATIONAL STRUCTURE

TRADITIONAL VERTICAL ORGANIZATION STRUCTURE:

TRADITIONAL VERTICAL ORGANIZATION STRUCTURE The design of this structure is a major managerial problem because it must permit employees to effectively and efficiently accomplish organizational goals. A characteristic of the vertical structure is a well-defined and understood authority relationship.

BARRIERS IN ORGANIZATION FORMING EFFECTIVE LOGISTICS:

BARRIERS IN ORGANIZATION FORMING EFFECTIVE LOGISTICS While all the elements are identified under the production and marketing functions, it must be recognized that a given firm will employ only those elements appropriate to the industry. Transportation is required during production, for example, to assure the acquisition and availability of materials needed during the production process.

DIRECTOR OF PRODUCTION AND MARKETING :

DIRECTOR OF PRODUCTION AND MARKETING Transportation Storage Inventory Training Publications Facilities Spares

ELEMENTS OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT:

ELEMENTS OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT Reorganize and combine logistics functions into a single managerial group. Structuring logistics as an integrated organization first appeared

IMPROVING EFFECTIVENESS THROUGH LOGISTICS ORGANIZATION :

IMPROVING EFFECTIVENESS THROUGH LOGISTICS ORGANIZATION The ideal structure for logistics would be an organization that performs essential work as part of the processes it supports while achieving the synergism of cross-functional integration. Firms examine the role of logistical competency can play an important role in the overall process of creating customer value.

TRENDS IN MODERN ORGANIZATION STRUCTURE :

TRENDS IN MODERN ORGANIZATION STRUCTURE Flatter organizations with increasing managerial spans of control as compared to the traditional vertical hierarchical structures with limited spans of control. Process integrated organizations from the functionally oriented organization used earlier. Information networked organizations integrated through rapid sharing of accurate information as compared to the information- inhibiting functional hierarchies.

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Organization structures promoting empowered frontline employees working as self-directed work teams fulfilling strategic plans in contrast to employees wedded to functional goal achievements. Positioning of logistics at a higher level in the organizational structure in order to increase strategic impact as a prime contributor of all activities related to new-product development, customer order generation, fulfillment, and delivery.

STAGES IN EVOLUTION OF LOGISTICAL ORGANIZATION STRUCTURE :

STAGES IN EVOLUTION OF LOGISTICAL ORGANIZATION STRUCTURE Bowers ox and Closs have outlined the trends in organizational development from -the fragmented functional structures in the pre-1950s through logistically integrated organizations to the virtual organizations of the future in the following stages: Stage 1 organization: Clusters of unified logistical operations Stage 2 organization: materials management and physical distribution integration

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Stage 3 organization: logistically integrated organization Stage 4 organization: Process-oriented organization Stage 5 integrated logistics organizational structure is the integrated logistics matrix environment.

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A. Traditional organization of logistically related functions.

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B. Stage 1 organization: Cluster of unified logistical operation

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C. Stage 2 organization: materials management and physical distribution integration.

CUSTOMER SERVICES:

CUSTOMER SERVICES

DEFINITION OF CUSTOMER SERVICE:

DEFINITION OF CUSTOMER SERVICE The definition of customer service by Coyle, Bardi, and Langley is as follows: “Customer service is a process for providing competitive advantage and adding benefits to the supply chain in order to maximize the total value to the ultimate customer.”

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Hence, an organization can define customer service in one or more ways: (1) An activity or function to be managed, such as order processing or handling of customer complaints; (2) Actual performance on particular parameters, such as the ability to ship complete orders for 98 percent of orders received within a 24-hour period; or, (3) Part of an overall corporate philosophy, rather than simply an activity or performance measures.

SCOPE OF CUSTOMER SERVICE:

SCOPE OF CUSTOMER SERVICE The role of logistics can be seen as the development of systems and the supporting co-ordination processes to ensure that customer service goals are met. A fundamental point to recognize is that customer service is a concept whose importance reaches far beyond the logistics area.

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Examples of the various forms that customer service may take include the following: Modifying a billing documentation procedure to accommodate a customer’s request. Providing non-standard financial and credit terms. Guaranteeing delivery within specified time periods.

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Providing prompt and congenial sales representatives. Including an instructions manual. Providing material to aid in a customer’s sales presentation. Installing the product. Maintaining satisfactory repair parts inventories.

IMPORTANCE OF CUSTOMER SERVICE :

IMPORTANCE OF CUSTOMER SERVICE Two factors have perhaps contributed more than anything else to the growing importance of customer service as a competitive Weapon. One is the continual increase in customer expectations; in almost every market the customer is now more demanding, more ‘sophisticated’ than he or she was, say, 30 years ago.

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The second factor is the slow but inexorable transition towards ‘commodity’ type markets. By this is meant that increasingly the power of the ‘brand’ is diminishing as the technologies of competing products converge.

ELEMENTS OF CUSTOMER SERVICE :

ELEMENTS OF CUSTOMER SERVICE Elements of customer service can be classified into three groups: pre-transactional elements transactional elements post-transactional elements.

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Pretransaction elements include the following: A written statement of customer service policy Customers provided with a written statement of policy Organization structure System flexibility Management services

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Transaction elements include the following: Availability Operational Performance Communications Flexibility

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Post-transaction elements include: Installation, warranty, repairs, and service parts Product tracking Customer complaints, claims, and returns Product replacement

CUSTOMER SERVICE OBJECTIVES :

CUSTOMER SERVICE OBJECTIVES Product availability The speed and consistency of the order cycle Communication between sellers and buyers

Customer Differentiation :

Customer Differentiation Not only do different customers buy different quantities of different products, but even of different cost. The 80/20 rule will often be found to hold: 80 per cent of the profits of the business come from 20 per cent of the customers. Furthermore, 80 per cent of the total costs to serve will be generated from 20 per cent.

CUSTOMER SERVICE AUDIT :

CUSTOMER SERVICE AUDIT The objectives of audit are to: identify critical customer service elements. identify how performance of those elements is controlled. assess the quality and capabilities of the internal information system.

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