1. Supply Chain Management Principles
LB 7: Customer Service Operations Overview

2. LB Objectives State the common elements of customer service operations
Discuss the difference between internal and external customers
Recognize the importance of a positive first impression
Explain the characteristics of successful ecommerce customer service
State the four elements of supply chain customer service
LO1

3. Customer Service Overview
Customer service excellence applies to both internal and external customers
Internal customers work within your company
External customers buy your products and services
Employees are ambassadors of the company and portray important roles such as:
Giving first impressions, developing working relationships, communicating personally and electronically.
Elements of customer service are: Time, Dependability, Communication, & Convenience
LO2

4. Customer Service Customer service is a key competitive advantage
It focuses on the fastest and most cost-efficient ways to support customers
It is every interaction a company has with its customers or brand including use of media such as :
Phone
Chat
Web
Social media
LO1

5. Customer Service Skills
Efficient customer service ambassadors are proficient in the following:
The order process (CRM)
Communications
Returns and reverse logistics
Challenging customers
Legal and regulatory concerns
LO1

6. The Order Process & Customer Relationship Management
The order process involves processing orders, managing customer relationships, & fulfilling orders.
Involves teamwork as it is often the first experience with a customer
Order cycle involves receiving and fulfilling customer orders
Customers begin the order cycle
When orders are placed, companies must ensure they are filled on time, completely, and without quality defects
LO2

7. The Order Cycle & Performance Metrics
To ensure employees are being efficient and effective, companies use performance metrics to gauge and measure success or failure in meeting defined objectives
Companies document all interactions with customers to assist in issue resolution
The following good practices help in the order fulfillment process:
Clear and frequent communication
Order consolidation
Inventory management
Order automation
LO2

8. Order Processing
Issue resolution impacts customers decision to continue to do business with you
LO3

9. Relationship Management
Customer Relationship Management (CRM) provides information about customers, sales, marketing effectiveness & market trends to improve customer service
CRM facilitates: Efficiency, Cost Reduction, Increases in Profitability, and Streamlines Sales & Marketing processes
Business relationships form the interaction between customers and suppliers over a period of time
Customer Life Cycle (CLM) describes the steps a company takes to find, manage, retain, and develop interactions with customers
LO1

10. Communications Communication is the transfer of information.
Effective communication involves knowing your audience, your message, and most appropriate form of communication known as channel of communication
Listening requires active participation to understand
Writing must avoid confusion because written communication is essentially permanent
Visual Communication uses images to persuade, entertain, inform, & enlighten customers or potential customers about products and services
Barriers to communication include: Language differences, cultural differences, lack of personal familiarity, & preconceived notions
LO5

11. Returns & Reverse Logistics
Reverse logistics is the return of products deemed unwanted by customers or defective
Reverse logistics include: Shipping, Testing, Repairing, Returning, Recycling, or Discarding products
Returned items are no longer limited to damaged products or incorrect shipments. Today, company policies allow customers to return products they are dissatisfied with
Customer service representatives must be skilled when dealing with customers in the reverse logistics process in other to retain them as clients
LO5

12. Reverse Logistics Process
The returns process begins with good customer service
The representative issues the customer a Return Material Authorization (RMA) number that approves the return and identifies it for processing
The return can result in: Re-inventory for resale, repair or refurbishment for return to the customer, or disposal if the product has no value
Performance metrics helps companies improve the quality of products and how returns are handled
Metrics include: Disposition cycle times, quantity and value of products reclaimed & resold, percentage of material recycled, waste, & handling costs per return item
LO5

13. Challenging Customers
To overcome challenging customers, representatives must practice: Patience, and good communication skills
Challenging & defensive customers fall into the following categories:
Angry or openly antagonistic and aggressive
Lacking good communication skills and the ability to express their thoughts
Arrogant or supreme attitude
Prone to making unwarranted personal attacks
Overly talkative and lacking the will or ability to listen
LO5