ASSIGNMENT 2

Table of Contents

1.0

ACKNOWLEDGEMENT ............................................................................................ 2

2.0

INTRODUCTION......................................................................................................... 3

3.0

TASK DISCUSSION .................................................................................................... 4

3.1

Task 1 ......................................................................................................................... 4

Why transportation and warehousing important issues in supply chain

management. ..................................................................................................................... 4
3.1

Task 2 ......................................................................................................................... 8

What is customer service? How an organization can response to its importance to

create competitive advantages? ....................................................................................... 8
3.2

Task 3 ....................................................................................................................... 10

Describe Customer Relationship Management. How can CRM applications increase

the effectiveness and productivity of a firms sales force?.......................................... 10
4.0

CONCLUSION ........................................................................................................... 12

5.0

BIBLIOGRAPHY ....................................................................................................... 13

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

1.0 ACKNOWLEDGEMENT

Firstly I need to thank to God for accommodating me the quality and wellbeing to do this
assignment work until it is done completely. This endeavour would not have been possible
without the principle and the aid from a couple of individuals who in by one means or
another helped and enhanced their critical backing in the arranging and climax of this
assignment. I moreover like to express my veritable gratefulness to my lecture Miss Azu
Aida, who is teaching Customer Service and Supply subject for helping and give prompted
for me to finish this assignment. Without your dedication and determined work in confirming
me surpass desires in my study, the completion of this undertaking would have been a
troublesome undertaking. Next, I may moreover need to thank to my friends who have helped
me to accomplishment this wander.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

2.0 INTRODUCTION

These days, the intricacy of the business environment is quickly expanding. This is
because of a few elements such as the development of the business sector, an extensive
variety of suppliers, expanded rivalry and customers requests on the execution of an
organization, specifically, the holding up time, expense and nature of the item. Among these
elements, on the off chance that we consider the scope of suppliers to the business, it is
important to outline an upgraded supply chain model. The supply chain is a complex system
from suppliers to customers, which involves people, technologies, activities, information and
resources. Its outline and management has the reason for getting the best worldwide
exhibitions under unions working criteria. An ordinary supply chain is made out of the
accompanying components: suppliers, manufacturing plants, warehouses, and circulation
focuses (DCs), customers/final markets.
For this assignment, below are the discussion on the few elements of supply chain
which includes the importance of warehousing and transportation in the supply chain
management. The is also the discussion on the customer service and how the competitive
advantage created as per its importance and finally, what is Customer Relationship
Management, and how the company increase their effectiveness and productivity on sales by
implement CRM.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

3.0 TASK DISCUSSION

3.1

Task 1

Why transportation and warehousing important issues in supply chain management.

The logistics management has been played an important role in various areas. For
production industries, logistics helps to improve the current production and distribution
processes as focused on the same resources through management techniques for advancing
the proficiency and aggressiveness of endeavours. Council of Logistics Management (1991)
defined that logistics is part of the supply chain process that plans, implements, and controls
the efficient, effective forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet
customers requirements. The most common characteristics of the current definitions,
logistics is the process that involving the moving and handling the goods and materials from
the earliest stage of production to the end of production, deal procedure furthermore squander
transfer, to satisfy customers and add business competitiveness.
The main element in a logistics chain is transportation system, which joints multi
activities. Transportation possesses one-third of the sum in the logistics expenses and
transportation system gives huge impact on logistics chain. Transporting is must in the entire
production methods, from assembling to conveyance to the last shoppers and returns.
Transport influences the results of logistics activities and, obviously, it influences production
and sale.
In the other words, transportation is represented the flow of the production activities.
Transportation provides the flow of inventory from the beginning point of the supply chain to
the ending, or points of use and consumption. Most businesses manage both inbound and
outbound logistics. Inbound logistics includes the acquirement of materials and products from
supplier areas. Outbound logistics includes the dissemination of materials and products to
customer areas. In this manner, transportation is vital on the inbound and outbound sides of
the business.
Sometimes, the flow of inventory flows in the reverse direction. Reverse logistics

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

refers to the role of logistics in product returns, source diminishment, reusing, materials
substitution, reuse of materials, waste transfer, and renovating, repair, and remanufacturing.
So transportation conveys material and items to customers, as well as moves reusable and
recyclable substance to organizations that can utilize it.

Example of Transportation
The figure below shows a system of reverse logistics service on how FedEx, a third-party
logistics provider, serves Acer computer, the customer company. At the first step of the
system, the customer applies a request for returning the product through the Internet, and then
FedEx builds the data of the products; meanwhile the system organizes the route of delivery
trips of the product. The customer can check the processing condition and wait for sending
back at the right time.

Figure 1. Third-party reverse logistics

(source: http://www.fedex.com/us/solutions/downloads/acer.pdf)

Warehousingis also plays an important role in logistics management system, as it is

itself a part in supply chain management. Although saw by a few as just as place to store
completed goods, inbound capacities that get ready things for storage and outbound
capacities that unite, pack and ship requests give imperative monetary and administration

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

advantages to both the business and its customer.

Today, warehouses are no more only for storage purpose and for now cost-conscious,
productivity driven environment, numerous manufacturers are reexamining their meaning of
warehousing. Anything that doesn't fit a rapid, very motorized, low-work environment is
consistently sent to the warehouse. Driving this advancement is a yearning to take
connections out of the supply chain and verify that expenses are streamlined and as near the
customers as could reasonably be expected.
As supply chains get to be progressively complex, the visibility offered by warehouse
management frameworks permits firms to keep up control of their stock. Information
investigation and different tools can give understanding that permits vendors to minimize the
risk of deferrals. Following conveyance times or order satisfaction process of action could
recognize potential bottlenecks that may make postpones in different zones if not addressed.
A warehouse gives a central location for receiving, storing and distributing goods. As
every inbound shipment arrives, obligations regarding the goods exchanges to warehouse
work force, items are identified sorted and dispatched to their temporary storage area. Storage
isn't a static "thing" but instead a process that incorporates efforts to establish safety and
keeping up an environment that jelly the honesty and helpfulness of the things. Once now is
the right time to move things, each one request is recovered, assembled, bundled and checked
for completeness before being dispatched to their new end of the destination.

Example of Warehousing
Coca Colas fully automated warehouse for the EMEA region is a sophisticated facility that
provides on-site storage, thus eliminating the expensive double-handling task that bogs down
logistics when shipping stock off-site to local warehouses. Delivered by FKI Logistics, Coca
Colas warehouse houses 25,224 pallet locations and is designed to accommodate future
expansion of the factory.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

Figure 2: Warehouse Concept

(source: http://www. http://shareonfacebook.net/diagram-of-change-managementprocess/)

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

3.1 Task 2

What is customer service? How an organization can response to its importance to create
competitive advantages?

Customer service is the service gave to customers in the process of before, during and
after purchasing and using goods and services. Great customer service gives an experience
that meets customer desires. It creates fulfilled customers. Terrible customer service can
produce dissentions. It can bring about lost sales, because consumers might take their
business to a competitor. In simple word customer service can describe as the ability of an
organization to constantly and consistently exceed the customer's expectations as customer
service is meeting the needs and desires of any customer.
Great customer service includes creating bonds with customers, assuredly prompting
long-term connections. It makes favourable circumstances for both customers and the
business alike. Customers advantage on the grounds that the business is giving a service that
addresses their needs. The business advantages in light of the fact that fulfilled customers are
liable to be repeat customers. They will stay with the business. Be that as it may, great
customer service is not easily achieved. It takes time to establish. It requires investment to
deliver consistent standards.
Each organization manager needs to get dedicated customers which add to repeating
buys and of reason expanding their greatest income. However to get there they have to think
about the 5 Service Quality Dimensions. A lot of people really surmise that service is just a
little part of the marketing mix, however it is really an imperative piece of both the 4 and 7
P's.
a. Dimension 1: Tangibles
The tangible Service Quality Dimension alludes to the presence of the physical
surroundings and offices, supplies, faculty and the method for correspondence. At the end of
the day, the tangible dimension is about making direct impressions. An organization ought to
need their entire customer to get a remarkable positive and always remembering direct
impression; this would make them more prone to return later on.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

b. Dimension 2: Reliability
The reliability Service Quality Dimension alludes to how the organization are
performing and finishing their guaranteed administration, quality and precision inside the
given set necessities between the organization and the customers. Reliability is pretty much
as critical as a goof direct impression, on the grounds that each customer need to know
whether their supplier is solid and satisfies the set necessities with fulfilment.
c. Dimension 3: Responsiveness
The responsiveness Service Quality Dimension alludes to the eagerness of the
organization to help its customers in giving them a decent, quality and quick administration.
This is likewise an imperative dimension, in light of the fact that each customer feels more
esteemed on the off chance that they get the best conceivable quality in the administration.
Dimension 4: Assurance
The assurance Service Quality Dimension alludes to the organization's workers. Are
the workers gifted labourers which have the capacity pick up the trust and certainty of the
customers? In the event that the customers are not happy with the workers, there are a fairly
expansive risk that the customers won't come back to do further business with the
organization.
Dimension 5: Empathy
The empathy Service Quality Dimension alludes to how the organization
considerations and gives individualized consideration regarding their customers, to make the
customers feeling additional esteemed and uncommon. The fifth dimension are really joining
the second, third and fourth dimension to a larger amount, despite the fact that the truly can't
be analysed as people. On the off chance that the customers feel they get individualized and
quality consideration there is an enormous risk that they will come back to the organization
and work together there once more.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

ASSIGNMENT 2

3.2 Task 3

Describe Customer Relationship Management. How can CRM applications increase the
effectiveness and productivity of a firms sales force?

Customer relationship management (CRM) has pulled in the extended consideration

of professionals and researchers. More organizations are embracing customer-driven
methodologies, projects, instruments, and engineering for efficient and effective customer
relationship management.
Customer Relationship Management is an extensive technique also methodology of
obtaining, holding, and collaborating with particular customers to make predominant worth
for the organization and the customer. It includes the combination of promoting, deals,
customer service, and the inventory network capacities of the association to attain more
noteworthy efficiencies and adequacy in conveying customer esteem.

a. Enhanced customer relations

One of the prime advantages of utilizing a CRM is getting better customer fulfilment.
By utilizing this system, all dealings including overhauling, showcasing, and offering the
company items to their customers can be completed in a sorted out and orderly way. The
company can likewise give better services to customers through enhanced understanding of
their issues and this thusly helps in expanding customer steadfastness and diminishing
customer agitation.in along these lines, they can likewise get consistent input from their
customers in regards to the company items and services. It is likewise conceivable that the
company customers propose they to their acquaintances, when the company give effective
and agreeable services.

b. Expand customer incomes

By utilizing a CRM method for their business the company will have the capacity to
expand the income of their organization as it were. Utilizing the information gathered, the
company will have the capacity to advance showcasing crusades in a more compelling

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

10

ASSIGNMENT 2

manner. With the assistance of CRM programming, the company can guarantee that the item
advancements achieve an alternate and shiny new set of customers, and not the ones who had
officially obtained the company item, and subsequently viably build the company customer
income.

c. Maximize up selling and cross selling

A CRM framework permits up-offering which is the act of giving customers premium
items that fall in the same classification of their buy. The method additionally encourages
cross offering which is the act of offering reciprocal items to customers, on the premise of
their past buys. This is carried out by collaborating with the customers and getting a thought
regarding their needs, needs, and examples of procurement. The subtle elements consequently
acquired will be put away in a focal database, which is available to all organization officials.
Thus, when an opportunity is detected, the administrators can elevate their items to the
customers, along these lines expanding up-offering and cross offering.

d. Better internal communication

Emulating a CRM system helps in developing better correspondence inside the
organization. The imparting of customer information between diverse offices will empower
the company to fill in as a group. This is superior to working as a detached substance, as it
will help in expanding the organization's productivity and empowering better service to
customers.

e. Optimize marketing
With the assistance of CRM, the company will have the capacity to comprehend their
customer needs and conduct, along these lines permitting the company to distinguish the right
time to market the company item to the customers. CRM will likewise provide for the
company a thought regarding the most gainful customer bunches, and by utilizing this data
the company will have the capacity to target comparative prospective gatherings, at the
correct time. Thusly, the company will have the capacity to enhance their advertising assets

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

11

ASSIGNMENT 2

effectively. The company can likewise be guaranteed that the company don't squander the
company time on less beneficial customer bunches.

4.0 CONCLUSION

As a conclusion, by doing is assignment, I was aware that the supply chain play an
important role on the providing goods and service. Based on the assignment, this shows that
the transportation and warehousing are most need in production of goods. Other than that, it
also shows that the customer service can give greater competitive advantage between
businesses and how it can make the business to succeed. Moreover, its also described about
the customer relationship management (CRM) and how the business can be improved by
implement the CRM. Finally, through this assignment I have learn the importance of the
supply chain and customer service in business in order to provide the good service and to be
succeed in their field.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

12

ASSIGNMENT 2

5.0 BIBLIOGRAPHY

Brian J. Gibson, Edward J. Bardi, John J. Coyle, Robert A. Novack, , 2013.

Transportation: A Supply Chain Perspective. 5th ed. USA: South-Western Cengage
Learning

The study of supply chain management strategy and practices on supply chain
performance | Rohaizat Baharun - Academia.edu. 2014. The study of supply chain
management strategy and practices on supply chain performance | Rohaizat Baharun Academia.edu.
[ONLINE]
Available
at:https://www.academia.edu/2342230/The_study_of_supply_chain_management_str
ategy_and_practices_on_supply_chain_performance. [Accessed 09 November 2014].

7 Key Benefits to Your Business with CRM. 2014. 7 Key Benefits to Your Business
with
CRM.
[ONLINE]
Available
at:
http://www.successwithcrm.com/blog/bid/51594/7-Key-Benefits-to-Your-Businesswith-CRM. [Accessed 12 November 2014].

What Are the Benefits of Using CRM for Your Business . 2014. What Are the
Benefits of Using CRM for Your Business . [ONLINE] Available at:
http://www.perfectmind.com/socialsite/benefits-of-using-crm-for-your-business#.
[Accessed 14 November 2014].

Benefits of CRM - 19 examples how CRM benefits businesses | Preact. 2014.

Benefits of CRM - 19 examples how CRM benefits businesses | Preact. [ONLINE]
Available at: http://www.preact.co.uk/why_crm/how-businesses-benefit#. [Accessed
27 November 2014].

. 2014. . [ONLINE] Available at: https://www.siam.org/journals/plagiary/1657.pdf.

[Accessed 28 November 2014].

Five Imperatives for Improving Service Quality | MIT Sloan Management Review.
2014. Five Imperatives for Improving Service Quality | MIT Sloan Management
Review. [ONLINE] Available at: http://sloanreview.mit.edu/article/five-imperativesfor-improving-service-quality/. [Accessed 29 November 2014].

Homepage | Council of Supply Chain Management Professionals. 2014. Homepage |

Council of Supply Chain Management Professionals. [ONLINE] Available at:
http://www.cscmp.org/. [Accessed 3 November 2014].

G.K.Leong, Wisner.J, K.C.Tan, , 2009. Principles of Supply Chain Management. 3rd

ed. USA: South-Western Cengage Learning.

6502TECYPC- CUSTOMER SERVICE AND SUPPLY CHAIN

13