Studies have shown that approximately 60% of people don’t perform any further transactions and business with a company that has bad customer service. It negatively impacted the revenue and profitability of the company, only because the sales staff wasn’t being kind. Good customer service has a great impact on your business. Today, we’ll discuss customer service in supply chain management; its definition, key functions and activities, and benefits.
What is Customer Service in Supply Chain Management?
Customer service in supply chain management comprises a group of strategies and activities focusing on satisfying the needs and wishes of customers to ensure a positive experience on the entire SC process and network. It includes offering assistance, support, guidance, and interaction with customers from the point they place an order until the delivery of the product to the customers. SC survey study of Geodis showed that 70% of the companies said that their supply chain is either highly or moderately complicated.
CS in SCM comprises comprehending the needs and requirements of customers, addressing their concerns, and meeting their expectations. It requires commitment, responsiveness, and communication in delivering high-quality products and services to the customers on time.
However, order management is the main critical area of CS in SCM; it comprises processing orders correctly, tracking orders, communicating with customers about potential delays, order status updates, and managing other relevant information. Transparent communication establishes trust and confidence with customers and amplifies their customer satisfaction level.
Customer service in SCM would bring efficient and reliable logistical operations and it comprises of following;
- Inventory management
- Smooth warehousing
- Efficient transportation processes
- Timely delivery
- Proper packaging
Managing returns and addressing customer issues and concerns are the main elements of customer service in SCM. Offering easy returns, responding to their complaints, and providing quick solutions amplify the loyalty and customer satisfaction level.
Activities & Functions of Customer Service in SCM
Some of the main functions and activities of customer service in supply chain management are as follows;
It consists of receiving customer orders and processing them like setting up delivery schedules, verifying payment methods, and checking inventory levels. The order processing method should be efficient and right to ensure timely order fulfillment and satisfy the needs and wishes of customers.
Effective inventory management ensures the availability of the right products and goods whenever customers need them. It focuses on decreasing the cost of the excessive inventory that the company is holding. In short, inventory management comprises replenishing inventory, predicting demand, and tracking stock levels based on the needs and requirements.
Transportation focuses on choosing the best medium of transportation for effectively delivering the goods and products to the customers. It decreases costs and ensures the timely delivery of goods to the customers. However, road, rail, sea, and air are some of the mediums of transportation; you choose the medium of transportation depending on the urgency of delivery, destination, and shipping product.
It comprises offering the right information to the customers on time about their orders like; potential delivery issues, delays, delivery time, and tracking information. Effective communication allows you to establish trust and confidence with customers and it helps you to avoid complaints and misunderstandings.
Benefits of Customer Service in SCM
Some of the main benefits of customer service in supply chain management are as follows;
Training CSR Team
Employees can’t read the minds of customers when it comes to satisfying the needs and wishes of customers. It is significant that you should offer training programs for your CSR (customer service representative) and teach them how they could recognize the pain points of customers and offer them relevant solutions.
It doesn’t matter how many business partners you use whatever type you have and your location across the world. It should be relevant and consistent with the customers. In order to provide a consistent experience, you should develop protocols and standards for your company that internal and external stakeholders should follow.
Integrating CS with OS
The customer service representative team should have access to the delivery and order system so that it can help them deal with customer fulfillment issues. Many customers would reach out to the CSR team to report the delivery time issue. It allows them to resolve their issues and it amplifies the customer satisfaction level.
In order to improve customer experience, it is significant that you should offer them various methods to contact your business. Some customers prefer calls, and others prefer email and texting. Various methods of contacting would help customers select the right and suitable method to contact the CSR team to resolve their problems.
Conclusion: Customer Service in Supply Chain Management
After an in-depth study of customer service in supply chain management; we have realized that CS in SCM is highly significant for your business. If you are learning about the role of customer service in SCM, then you should keep in mind the abovementioned elements and benefits.
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