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A paper on improving customer service
A paper on improving customer service
Essays on how to improve customer service
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When thinking of improvements to our value chain, there are a few major outputs we might look for such as cost savings, an increased level of customer service, and an increased level of customer satisfaction. These results can be achieved a number of ways, but they similarly are usually derived from crucial areas in an organization’s value chain. When looking at TMNAS, I would like to offer a few improvements that I believe would help achieve some of the desired outputs previously mentioned. To start, I think that there should be an enterprise wide emphasis on employing service level agreements (SLA’s) to as many, if not all, services provided to our customers as possible. At the current stage, there is obviously a high expectation of customer …show more content…
One way is less formal and basically comes from an overall feeling of our customer’s management level stakeholders, and another way is employee surveying at all levels. A lot of times this data can be abstract, and not based on much as customer service may more difficult to quantify than say performance. I think that SLA’s will help in quantifying the customer service level, and I think it would be valuable to be able to quantify this as our relationship hinges on customer service and performance. So as an example lets outline the process of a computer repair with an SLA, an IT responsibility that happens regularly, and look at how just employing an SLA would benefit our customer service rating. Let us assume that the expectation is set that upon TMNAS IT receiving a computer repair request that someone will reach out to the employee within one hour of the request, the issue will be fixed the same day, and a follow up will occur the following business day. This can be outlined and agreed upon by TMNAS management and our customer’s management, and stated that this timeline must be met at least 97% of the …show more content…
This area is procurement within the accounting department, which is often thought of as a support area for the value chain. I have taken a look at this possibility earlier in the semester, but the improvement would be to create a strategy for cost savings around multi-company purchasing and contracts. As a services company, a big goal from our value chain is saving our customers money wherever possible. What I mean by multi-company purchasing is this. If we look at IT specifically, we support several insurance companies’ infrastructure, software, hardware, and so on to give them the ability to operate soundly. I’ve noticed two things during my time at TMNAS that gives me reason to suggest this as an improvement to our value chain. The first thing is that we often purchase software for one customer that another customer needs later or could use and benefit from just the same. The second thing is we often deploy IT projects for one customer and perform the same deliverable to another customer after depending on need. My thinking is simple and is around saving money for customers by purchasing more at once to take advantage of large savings. This has been done in the past, and savings are very significant, but I think we can further this process in order to take advantage of greater savings. As an example,
Any time the company is looking into software project, there are areas associated with risk such as cost, time and relationship with suppliers. However, for Harley-Davidson, “collocation of suppliers with production facilities and their integration into company’s development process was the essential part of long-term relationship development”. Through a continued focus on collaboration and strong supplier relationships, the company could position itself to achieve strategic objectives and deliver cost and quality improvement over the long-term. Since, at that time company had no centralized system in place to handle relationship with suppliers and consequently, most of company’s time was spent on supplier management activities. For example, reviewing inventory, expediting and data entry. Furthermore, each supplier had different information systems for “Maintenance, Repair, and Operations (MRO), Original Equipment (OE), Parts and Accessories (P&A), and General Merchandising (GM) purchasing activities”. The systems, already provided by supplier, had to be further modified to meet individual need at each location, such as “the OE system at Harley-Davidson’s York, Pennsylvania site was different from the OE system in Kansas City”. However, due to long-standing tradition of gradual change implementation and focus on quality, quick transitions were unwelcome and did not come easy for the company. The size of the project determined how much risk was involved in terms of cost, time, and supplier relationships. The idea of switching to global purchasing system was seen as a threat not only in supplies and production flow interruption, but also in damaged dealer/customer relationships and lost sales. Furthermore, failure of the sy...
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer.
Royal Caribbean Cruise Ltd (RCCL) has two distinct supply chains which create a unique challenge. Each supply chain is managed by a Provision Master. The first supply chain includes all food, beverage, and lodging inventories that needed for the trips. The second supply chain encompasses “corporate spend” materials, such as office supplies, printing services, hardware and software, printed materials, computer supplies, marine consumables (spare parts, fuel, lubricants, any and all services associated with the ship maintenance and etc).
Optimal supply chain performance requires the execution of a precise set of actions that are not always in the interest of the individual supply chain members, who are most often interested in only optimizing their own objectives (Cachon et al. (2003)). Optimal supply chain performance can be achieved if firms coordinate by contracting on a set of transfer payments that are design to align each firm's objective to the supply chain objective. This mechanism is termed decentralized supply chain co-ordination using contracts.
When looking at Target’s value chain, it is evident that they apply aspects of both design and corporate responsibility while thinking through every decision they make to ensure it lives up to their values and helps the world. Starting at the top, they look at design. Design is what they call the heart of the business. Looking at every detail from the big picture to the small things that make a Target shopping experience, the goal is to do it with greater efficiency, style and smarts. (Corporate Responsibility Report, 2014).
In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organization.
Consider examining your Net Promoter Score. Think about how messages induce responses via your inbound channels and how competitive messages are perceived. Investing in metrics that measure loyalty can impact how you approach the customer lifecycle.
In order for any business to stay ahead of its competition it must carefully monitor its resources allocating funds to each area of the business by the level of importance that area requires. Decisions that are made in this area are vital to the operation of the company. If an important department is not given the adequate funds that it needs to be completely beneficial while extra funds were given to a department that is able to be fully beneficial with less money then a serious mistake was made, perhaps costing the company their competitive edge. One way a company can avoid this is through the implementation of a value chain model. This will allow the company to see which departments are the most beneficial and require the most funding. One of the difficulties in making this model is deciding the importance of departments that do not directly produce or distribute products or services for the company. One example is the Technology Department. Although this department does not appear to directly make money for the company they contribute a considerable amount to those departments that do.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
Many organizations do not achieve the profits they anticipate by using incorrect methods or models to determine the true costs of products and services. This failure to correctly assess the costs associated with business not only affects the profit margin, but the organizations competitive advantage as well. In order to asses whether the organization is failing to realize optimum resource allocation, the organization should look at the methodology first popularized by Michael Porter titled the Value Chain Analysis (VCA). "VCA seeks to define the entire chain through which goods are supplied to a customer" (Booth, 1997, 2). The VCA can be a powerful tool in increasing an organization's competitive advantage; by correctly pricing products and assessing the true costs of materials and labor, organizations can align the improvements in efficiency, quality, and profits with its strategic objectives.
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
Expectation that top management in companies – both in private and public sector – places on supply is growing exponentially, mainly because of the permanent drive to lower cost and retain competitive advantages on the market, but also to create additional value. Research has shown that the perception of impact of supply chains on the results of businesses will grow in the future, taking a more prominent role in company structures over time.
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
Procurement is one of the fundamental links in the supply chain of any organization. If this link is not managed efficiently and effectively, serious downstream challenges abound .
By adopting the value chain into a manufacturing company, it will gain efficiency, effectiveness, reduce the product cost and improve continuously. For example, Toyota has implemented Toyota Product System (TPS) integrated information system with the business process which allowed the company to be more efficiency, effectiveness and reduce inventory cost. (Toyota