Component of

Customer Service

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Components of Customer Service

The most important aspect to understand in any Supply chain is the

definition of Customer and supplier. Who is customer and who is
Supplier?
Let us look at the process

You will see that the supplier is a customer for its subcontractor,
purchaser is its customer, production department is Purchases
customer, Quality is productions customer, Packing is customer of
Quality, Warehouse is production/quality departments customer,
warehouse is Sales department customer and Ultimate Consumers/
Dealers/Distributors customer. So at every stage of supply chain we
have two most important identities, Customer and Supplier. It is valid
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Components of Customer Service

and true for every kind of Supply chains, whether manufacturing or
service industry. The supplier is always under the pressure satisfy its
customers expectations at every level. Customer always dictate its
terms and a satisfied Customer in-turns, place fresh and repeated
orders. This is how any supply chain works.
The ultimate goal of any Supply chain is to establish a customer
oriented system and to ensure customer is serviced at the best level.
We will discuss the main components of Customer service here.
During my experience of long 25 years, I find few of the main
component of customer service are
a) Response Time
b) Product Choice/Variety
c) Availability of Product
d) Customer Experience
e) Order Traceability
f) Goods Return policy
Please take a note that customer definition has now changed over a
period of time. Previously it was said that Customer is the King. But
now the definition has changed to Customer is only the king. He
dictate his own terms and condition. Therefore a supplier has to
understand the mind set and requirement of his customers.
a) Response Time This is one of the most
important ingredients of any supply chain.
Paradigm has changed. Now customer places
his order only to those who respond faster and
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Components of Customer Service

quicker. At any point of time it is necessary to respond to the
customer quickly. Whether your customer is a supplier or Purchase
department or production department or Quality department or
packing department, etc., you have to respond to your customer
with the information required by the customer, which may be status
of material, rates, discounts, dispatch details or status of the order.
There is no escape to it.
b) Product Choice/ Variety Now a days everyone wants a selection
list, out of which he will select and give the order. For example if you
go to market to buy a pair of shoes for yourself, even though you
have chosen some model, but you will ask for more variants from
the shop keeper. If the shop is not having the desired model or more
variety, it is for sure you will not buy from that shoe. Variety gives
the customers choices to select from. If you dont have variety, then
there are chances of Sales loss.
c) Availability of Material Information is
incomplete so far as it is not fulfilling
the execution of the requirement of the
customer. Availability of material is
must for the customer service. If a
customer has chosen any item; you
dont have in stock; and the customer is unable to choose any other
item, then it is a sales loss. The customer will not wait for the
availability; he will buy from other sources. But there is a debatable
whether to invest heavy capital in keeping the stock or to lose sales.
Decisions can be taken by the management whether to increase the
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stock, make limited number of SKUs and bear the sales loss. But it is
for sure that if a customer has been denied of any SKU, then there is
50% probability that the customer will come again at your counter.
Availability of the material plays an important role in retention of
customer and inflow of repeated orders.
d) Customers Experience Customer
Experience is a Benchmark for any
company. So far companies have been
talking of Product quality, prices and
delivery to the customers. But now
marketers are talking of customers
experience with the company from the
enquiry till the usage of the produced and after sales service
experience. Experience of the customer the company, matters the
most. This experience only motivates the customer for taking
services of the company again and again. A good experience will
always will be remembered by the
customer and he will share it with all
others in his circle of influence. Even
the experience the customer had on
e-commerce sites also improves the
image of the company. The menus should be interactive and users
friendly. Minimum steps should be taken by the customers to search,
decide, opt for payment, tracking the article till delivered.
Customers experience with the company is very very important,
cant be taken for granted.
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e) Order Traceability Customer take lot of pain in searching the
product of his choice and also pay for the product, therefore it is his
right to know the status of the material en-route. Company should
provide the customer the steps involved and the status of transit of
the material on regular intervals. Company can send the status via
SMS, Whatsup, email or call. This builds his trust in the company and
products. This applies to internal customers also. Like production
should be intimated on the status of availability of the raw material
from time to time, by the procurement department.
f) Goods Return Policy It applies to both
tradition systems of purchase & sales and
purchase & Sales through e-portals. When a
customer buys a product, he always asks for
self-life of the product and warranty given by
the company and also enquires about the
after sales services. A goods returns policy
ensure the customers that there would be no defect in the material,
that is why the company is so confident that they have goods return
policy in place and if there is any defect, then he has the option of
getting the damaged product replaced or get the money reimbursed.
There is not end to the list pertaining to Customer service. Lot of
research has been done on this subject by the prominent universities
and institutes and still more studies are going on many other
dimensions on customer retention and customer services because

Customer is only the KING

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Components of Customer Service

About author
Rajinder Singh Mann, B.Sc., PGDCS, MBA, MPhil. Having Experience of 25 years
in S&OP, Education, Logistics, SCM. Has worked in diverse industries like
Publishing, Fasteners, Paints and Varnishes, Food Processing, Education and
Training, Steel wares and Table-wares. Presently associated with Ceramics
Industry heading Supply Chain Department.

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