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Customer Service and Supply Chain

Chapter 4
Customer Evaluation of Service Quality (Explain, together with examples) 15 marks
a. Reliability

Accuracy of billing, meeting promised delivery dates

Example: Astro Billing

b. Assurance

Guarantees and warranties, return policies

Example: Laptop Charger

c. Tangibility


Appearance of store and salesperson

Example: Samsung Salesperson


Personalized service, receipts of notes and emails, recognition by name

Example: AEON Member Day

e. Responsiveness

Returning calls and emails, giving prompt service

Example: TM Call Center

Customer service approach

a. Personalized Approach

Greater benefits to customers

Greater inconsistency

Higher cost

b. Standardized Approach

Lower cost

High consistency

Meets but does not exceed expectations

Support for Service provider

a. Instrumental Support

Associates need to have the appropriate systems and the right equipment to deliver
the services

b. Emotional Support

Associates need emotional support from their coworkers or a concern for the wellbeing of others

Chapter 5
Basic Reasons for Need of Warehouse (15 marks) Explain, Together with examples
a. Raw materials

This category of inventory refers to inputs into the production process that are not
yet processed in full or in part.

Examples: Oil

b. Work-in-Progress

One cannot classify them as raw materials because they are already part of the
production process

Examples: Silk materials

c. Consumable Stores and Spares

Spare parts for machinery, tools or equipment used in the production process are
also an important part of inventorypart of the material costs (indirect) of

Examples: Earphones

d. Ready-Made Components

Components that are made by machines

Examples: ready-made sauces

e. Finished Goods

Finished goods are those that are ready for sale

Examples: Water Bottle

Chapter 6
Logistic Strategy and Planning (Tutorial 4 & Tutorial 5)
a. Objective of Logistic Strategy

Minimize Costs

Minimize investment

Maximize Customer Service

b. Levels Of Logistics Planning




The Logistic Strategy Triangle (15 Marks)

a. Inventory Strategy
Inventory can be defined as a place to keep the stocks. This strategy is more related to
warehousing. Besides that, it allow the workers to decide what type of stocks that are need
to be keep. Furthermore, the purchasing and supply scheduling decisions will depends on
which type of warehousing they are currently using. Storage decision allow the workers to
allocate the space to keep the stock in a specific storage.

b. Transport Strategy
Transport Strategy allow suppliers to decide how to deliver the products to the end users.
Transport fundamentals is a very important aspect that gives idea to the suppliers to use
which type of methods to deliver products. Besides that, transport decision is very important
because this part will let suppliers to decide how much the price of delivery and where the
goods need to be delivered.

c. Location Strategy
Location strategy will be used by a certain business with partnership or entrepreneurship
have a good connections. When it comes to location decision, they must think wisely and
decide carefully wheres chosen locations. This goes same to the network planning process.

d. Customer Service Goals

The all 3 main aspect (Inventory, Transport, and Location Strategy) that are focused on the
customer service goals. The products that are received by the customer will depends on
those three strategies. Besides that, the products quality must be excellent and it must
Logistic services is important to customer because customer wants the product to receive in
time and in the correct location. Information system is where the customer gets the product

Common Contemporary Logistic Term (15 Marks)

a. Value Stream / Logistic Process

Planning, implementing and controlling the efficient, cost effective flow and storage
of raw materials, in process inventory, finished goods and related information from
point to origin to point of consumption for purpose of conforming to customer

b. Quick response and flexible manufacturing

The logistics will be react quick to the situation.

The manufacturing process will be flexible.

c. Mass customization

In a large process, where they can customize.

d. Supply chain management / collaborative logistics

They will have collaborative, working together.

Example: sharing transportation.

e. Reverse logistics

Means that the logistics process is reverse, from end-user to the supplier.
End user


For an example, the IKEA Company send the goods by lorry. Then, when the
customer check the goods if it is in a damage or fragile conditions then, the IKEA

Company must come back with the empty vehicles and repair back or change the
goods to new one.

Services logistics

The logistics itself will have their own services.

For an example, POS LAJU needs van or motorbike as their vehicles for
transportation. So, when they have their own vehicles, they can easily travel and
give services.

g. Continuous logistics

Deliver products to the customer time to time

h. Lean logistics

The business transportation depends on other transports.

For an example, courier sends through Air Asia transportation. So if Air Asia plane
have problem due to weather or engine, the materials cannot be delivered at the
exact time they needs.


Integrated logistics

Sharing the transportation will be integrated if there is two partners.

Key Activities / Processes

a. Primary

Setting customer service goals


Inventory management


b. Secondary / Supporting


Materials Handling

Acquisition (purchasing)


Product Scheduling

Order processing

Chapter 7
Customer Definitions
a. External Customers

Customers we do business with outside our organization.

b. Internal Customers

The people we work with throughout our organization.

c. Customer Attributes

Characteristics that allow customers to categorized according to demographic,

psychographic, or firmographic

Level of Customer Expectation (Primary & Secondary)

a. Primary Expectation

Customers most basic requirements of an interaction

b. Secondary Expectation

Customer expectation based on our previous experiences that are enhancements to

our primary expectations.