Quiz 11: Distribution Customer Service and Logistics


HVC must make some key decisions with respect to the level of customer service it chooses to offer. These tie into the logistics decisions the clinic must make. With medical supplies, HVC must determine which items to maintain on hand and which can be obtained from a supplier quickly enough to provide adequate care to patients. Many medical supplies are likely to be used very infrequently, so stocking them at the clinic may involve significant costs. Some supplies, like medicines, are also likely to be perishable. So these decisions are important. They point to the value of having a supplier that can quickly deliver products - perhaps within hours. Customers probably expect the clinic to have access to most supplies needed for urgent medical care, but may be more forgiving if the clinic runs out of leashes or food. The storage of pet supplies may involve a number of decisions. Inventory levels are important - as carrying too much inventory places strains on limited storage capabilities and raises costs. Pet food may attract pests and may also be perishable.

Marketing Mix refers to the set of actions, or techniques that a company uses to promote its brand or product in the market. The 4Ps of marketing mix - Price, Product, Promotion and Place. As customer service depends on the crucial 4ps. Customer service level is proportional to the demand of the product. Customer service is a necessity in market to run the product successfully. Customer always wants the product on time, with fewer prices and at a right place. Customer service level is how rapidly and dependably a company can deliver what the customer wants. If the customer service level is improved and in sufficient time the product is delivered with lower price, a customer would be satisfied with the service. And to provide the same product which was bought by the customer for eg. If a customer orders white shirt and instead of it black is delivered then that would not be beneficial for brand of product and would have a negative feedback of customer. So, delivering the ordered choice, in sufficient time and with reasonable price is a need of every customer. As, customer service level is improved:- • Market would be attracted towards company product. As customer service is improved, consumers would be more interested in the product as the services would be beneficial in order to solve the query and provide solutions to the consumer about a product. • Market value of product would increase. As the realistic view of supply demand, consumer policies, the standardize material, logistic requirement with this confirmation the needs are fulfilled in the market and hence the market value of product also increases. • Sales would increase. As mentioned market value increases the sale of a product also increases as the demand of a product increases. • Customer confidence in product increases. The way of ideology of a customer been satisfied by providing the necessity guarantee policy and all consumer rights, then the confidence of a customer would increase in that product. • A brand name can be established. As the confidence of customer increases, sales increases, demand increases that product has a high rise in the market and that company manufacture would be consider as a brand in the future stanza. • 4ps of marketing mix would increase. As Customer service improves and the product has a good growth in the market. 4ps of marketing mix also has a growth. These are the marketing mix of improving customer service.

Customer service plays an important role in order to understand if it's is customer satisfied with the product or not. A typical customer service starts before the sale, during the sale and expand after the sale. The most essential aspect for the customer satisfaction will be that the customers who are buying the furniture should be satisfied with the quality of fabric. The fabric should justify the price and quality too. And also the accuracy in filling orders and consistency in meeting delivery dates would be the most crucial aspect for a furniture manufacturer. Receiving the wrong fabric or not receiving the fabric on time could cause major delay in manufacturing. Such scenarios can cause in the manufacturer raised cost of employees who are least concerned. Further, if the customers have to wait for their orders, they can change their mind and shift to another product. However, cost for product and shipping are always an issue.