Demand Management Order Management Customer Service MRKT 415 – Chapter 4.II Evrim Toren

What do we mean by demand? Demand is the total number of requests for a resource. Demand management is all about making choices. Request: an act of asking politely or formally for something

Demand Management The demand management process captures all work proposals in one place, guides the proposals through a multistage governance process, helps customers make decisions about which proposals to approve, and tracks progress on project execution until the work is completed. Approve: officially agree to or accept as satisfactory Proposal: a plan or suggestion, especially a formal or written one, put forward for consideration by others

Traditional Demand Management… Covers how a firm integrates information from and about its customers, internal and external to the firm, into the manufacturing planning and control systems. How a firm integrates information from its customers with information about the firms goals and capabilities, to determine what should be produced in the future.

Demand Management Demand Management is based on “forecast” and plans. In DM, forecasts of the quantities and timing of customer demand are developed. What do we actually plan to deliver to customers each period is the output of the process.

Demand management is The process of ensuring that market demand and the company’s capabilities are in synchronization Recognizing all demands for products and services to support the marketplace. Doing what is required to help make the demand happen Prioritizing demand when supply is lacking. Planning and using resources for profitable business results

Optimize business processes for demand fulfillment and improve efficiency of services delivered… –Complete projects on time –Reduce costs –Increase client satisfaction –Assess the availability and skill sets of resources

Supply and Demand Through an Integrated Solution Manage business demand and customer satisfaction using a defined and repeatable approach. Collaborate with business counterparts using a transparent decision- making process. “Organizations that are switching to the demand-supply model enjoy significant gains in productivity and prioritization of investments.” McKinsey Quarterly, September 2006, “Splitting Demand From Supply in IT” by David Mark and Diogo P. Rau

Demand management components Goal customer service levels New product introductions Distribution resource planning Customer order entry and promising Sales and marketing plans Inventory targets Product commitments Interplant shipments Demand forecasting at item and aggregate levels

IMPORTANT ISSUES in Demand Management Market segmentation Customer classification Product ranking

11 Order Fulfillment and Order Management Order fulfillment activities differ as a supply chain matures through transactional to interactive to interdependent levels. Order-management systems represent the principal means by which buyers and sellers communicate information relating to individual product orders and is key to operational efficiency and customer satisfaction.

Order Management Functions

Important Notes about Order Management The order cycle traditionally includes only those activities that occur from the time an order is placed to the time it is received by the customer. Major Components of the Order Cycle

Elements Of Customer Service Elements of Customer Service – Time – Dependability Cycle time Safe delivery Correct orders – Communications – Convenience

Customer Service: Implementation Standards Set standards at realistic levels. Quality levels set below 100% can be problematic. Consult customers on policies and standards. Communicate standards to customers. Measure, monitor, and control customer service standards.

Attitude Checklist What attitudes assist in providing good service? Enjoy helping people Handle people well Care for your customers Give fair and equal treatment to all Be understanding of people with special needs

Skills for Customer Service Know about your organisation Learn the technical parts of the job Communicate well Be consistent Be organised Know your place in the team and be a team player

Factors Affecting the Quality of Service Reliability Confidence Responsiveness Efficiency Consistency Organisation Acceptance of and adherence to policies and procedures