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Post-Module Assignment
Introduction
Excellent customer service is from inside out, and from top till down. It is charity begins at home, the way we serve ourselves within the organisation will reflect in the way we serve our customers. Everyone have a customer, everyone you encounter is your customer, colleagues, superiors, subordinates, vendors, and of course your customers. Every contact with customers should be enjoyable experience, is an opportunity to impress, to show how wonderful a company to do business with, because the customer perception is determined from the first encounter with them which is the moment of truth. This essay intends to discuss the impact of moment of truth to organisation. Every contact with customers is an opportunity to impress and win!over the customers, the implication of inability to impress is a lost of would be a loyal customer.
Memorable Service
Excellent customer service is the prere-uisite for retaining and attracting new customers. The only time organisation have impact on the customer is when the service rendered exceed customer wide expectation. .lthough individual customer perception of what constitute a superb customers service varies, (ara coo/ $1%%+' point out that perception of the service which a customer receives depend upon their expectations. $see appendix .' further analogises the good and bad customer service, which remain to linger in my mind, the first company refused to recognise the moment of truth, of which the second company recognised by delighting me through provision of what I valued. 0issatisfied customers will tell many people, and simply carry his1her business elsewhere, you want to be remembered for superior service you render to your customers.
Moment of Truth
The point when the business meets the customers provides ultimate opportunity to serve the customers, to turn dissatisfied customers to loyal customers. Excellent customer service is a prere-uisite for success, every encounter with customers that might result to positive or negative perception is a moment of truth that can determined organisation success or failure. It provides the opportunity to impress the customers to choose your organisation as the only alternative. #ustomer are the bloodline of any business, you must delight them at all time. They are the only source of revenue, you must aim to gain their loyalty by provide them exceptional service at all times. 2eter 0ruc/er points out that there is only one valid definition of business purpose, to create customer and /eep customers. Every interaction with customers must be enjoyable experience, from the moment they enter your company, the way you greet them, attend to their immediate needs, tal/ to them on phone, resolve their problems $(ee appendix .'. Everything you do must reflect customers satisfaction and revolve around customers because this impression symbolised your company in eye of customers. Every encounter with customers is a moment of truth.
Advocates
Customer
Source; adapted from Sarah Cook (1992), Customer Care, 1st edition, Kogan Page Ltd. Page 19.
Conclusion
Excellent customer service is the responsibility of everybody within the organisation, not just the responsibility of the frontline employees, the decision
"eference
5eronica 2. $1%%%' 6eing successful in 7. #ustomer care, 6lac/hall 2ublishing, 0ublin. #oo/, (. $1%%+.' #ustomer #are, Implementing Total -uality in today s service!driven organisation, 8ogan 2age 2ublishing. (weeney, E. $+,,9', :nderstand (upply chain management . In Edward, ( $Eds' Perspective on suppl chain management and Logistics, 6lac/hall 2ublishing, 0ublin. (weeney, E. $+,,9', :nderstand customer (ervice . In Edward, ( $Eds' Perspective on suppl chain management and Logistics, 6lac/hall 2ublishing, 0ublin.
A%& Mediocre customer service I wal/ed in to one of the electronic outlet in my area with intention to buy latest Toshiba android tablet advertised on T5 and on the local news paper. I as/ed the first shop assistant I met at the entrance to the store to show me the shelf where I can find Toshiba android tablet, to my surprise the lady was not aware such was advertised, not to tal/ of /nowing the shelf location where to find the product. (he needs to consult her supervisor who placed the advertisement, the supervisor told me uninterestedly that the advertised product was not in stoc/ because the supplier failed to delivered the product. <e just callously hurried away to attend to another customer without any sense of empathy. I vouched never to visit the store again. #ustomers want staffs that have /nowledge of products, promise to deliver, friendly, polite, and sympathetic when things go wrong and have good interpersonal s/ill. A%' E#cellent customer service I wal/ed in to another electronic outlet within few distance to the first, as I wal/ed in, i was greeted warmly with courtesy and respects. I as/ed if they have Toshiba android tablet, the shop assistance wal/ed me to the exact shelf location of the product, go through the product features with me, compared the product with latest .pple Ipad in term of cost, design, durability and easy navigation. I was coaxed to even buy accessory with the product. .t the end of the day I was satisfied with the level of service I received which was exceptional in my opinion, although a bit expensive compared to other store. Ever since then, I remained loyal to the store and continued to patronise them. If your customers are satisfied they will refer your products1service to others and possibly become your advocates. It is estimate that on average it costs five times more to attract a new customer than to /eep existing customers.
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#ompare and #ontrast front!loaded and bac/!loaded customers service strategies from an ?22 perspective @ assesses strengths and wea/nesses and highlight the main impact on (#"
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Introduction The success of most often mentioned frontrunner organisations are due to their ability to effectively use hard to replicate internal capabilities to match organisation strategy with the goals. They developed business model difficult to imitated or delivered offering in a uni-ue way that different from others, and they continuously meet customer needs and re-uirements in segmented mar/etplace. Aobust customer service strategy is a modern day norm, not an exceptional as in the case of .maBon that strived to be earth most customer!centric organisation and Cara that recognised customers as the heart of their business. These two companies are run by proprietors, who understand psychology reasons behind customers purchase and clearly understand mar/etplace, who thin/ and act differently, who focus on right goals. Those goals are communicated, described, and aligned to meet customers specific needs, and then translated into right strategies built around customers and offerings. (weeney $+,,9' point out that customer service sets the specification for supply chain design. This written will be drawn on case study of two successful business models, an e!retail organisation .maBon.com and (panish clothing giant Cara, subsidiary of Inditex. "y intention is to loo/ at the similarities and differences of front!loaded $.maBon.com' and bac/!loaded $Cara' customers service strategies from an ?22 perspective, evaluate the strengths and wea/nesses of both strategy and the impact on (#".
(vervie! of Ama)on
.maBon offers wide range of products and services to customers in different categories at competitive price through their e!retail websites, .maBon.com and .maBon international. They manufacture and sell 8indle e!reader, purchase and resell products from third!party sellers. The brand name popularised the online shopping experience and command leading mar/et position among e!retail companies. (ee .ppendix A%&
They offer information about products and services in an interactive, excited, and easy navigation manner and depend on customer interaction with their website to create a direction to offer the customer shopping advice. .maBon.com business model reliant on information technology to reach customers, supported with data centre, fulfilment centres and warehouse at the bac/end. The distribution operations ensure products are speedily delivered on!time, well pac/ed and in good condition to customers.
(vervie! of *ara
Cara operated apparel retail outlet with bric/!and!mortar stores and online retail store. The company sell apparels, footwear, perfume, and other accessories direct to customers through their own stores. Cara offers latest design fashion in a medium -uality at low price in low -uantities, influence by customers fashion trend and taste to produce assortment of cloths that befit their target group. The fast!fashion business model Cara adopted distinguished the company from the competitors within the industry, -uic/ turnaround time, latest fashion at medium price, generate direct information from stores, and reliant on it supply chain to respond -uic/ly to mar/et demand. The company focus is to further expand in Europe and .sia to cement is position as one of the industrial leader of fast fashion retail. Ama)on organisation ob+ectives The company identified few /ey objectives over short and long term. It intends to create and maintain shareholders value over long term without sacrifice excellent customer service. 2osition itself as the low cost mar/et leader, and intend to dominate the mar/et by expand product1services offerings to boost revenue and profitability. Aemained customer!centric focus, never lost sight of customer and to be world largest selections, a place to sell anything and everything online. *ara organisation ob+ectives Cara see/s to satisfy the fashion demand of women, men, and /ids globally by offering latest fashion designer apparels and footwear at medium -uality in a low price. It intends to compete globally reaching wider fashion followers, and maintain shareholder value over long term. #ustomer is at the heart of Cara business, the process begins with customer interaction in various stores and end with customers, delighting these customers is the company objective. &
Cara vertical supply chain integration supports the operation effectively and manages the entire value!creation process to facilitate -uic/ response. #o!located production facilities within close proximity with centralised logistic centre to reduce transport cost and enhance productivity. . pull system that responds -uic/ly to customers demand, the process triggered by customers fashion re-uirements start with customers and end with customers. The business model reliant on state!of!art communications and information technology that respond swiftly to data transferred from stores to decision ma/ers, productions, and distribution centre. Cara was able to wor/ without carry many stoc/s and -uic/ respond to mar/et needs. Twice wee/ly basis delivery of new stoc/s to stores and shorten production cycle to 1=days.
The .maBon inc organisation structure enable people and resources grouped by products department in different countries they operated to wor/ together in accomplish organisation objectives. They formed multi!disciplinary team in each department wor/ing across all functions within the organisation, enable collaboration, and systems of accountability among teams to support organisation strategy, this cross!functional team respond -uic/ly to customer order and deliver to promise. The structure enables teams to focus on customers specific re-uirements, while generating internal synergy to meet and exceed customers expectations without jeopardise inventory.
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They see/ service of young talented, smart, enthusiasm, and hardwor/ing employees. Aecruited exceptional brilliant students to wor/ for them, and created feel!friendly wor/ing environment. .maBon recruitments slogan Dor/ hard. <ave fun. "a/e history appease to young employees. .maBon always loo/ for personality trait that match the business objectives during employee recruitment stage, because good fit employees will be committed, experience job satisfaction, and would not be interested in -uitting. *ara organisation structure
Cara organisation structure enables rapid communication and speedy response by placing cross! functional teams grouped by products categories, co!located in close proximity to form cluster of s/ill!full wor/ers managing design, production, and distribution. The vertical integrated functions of Cara was driven by multi!disciplinary teams, individuals team member representing each function within the company, these cross!functional teams are wor/ing together to meet company s objective of superior customers service. The structure reduces managerial hierarchy levels and decentraliBes decision!ma/ing to facilitate speedy response to customers needs. The product of this structure is highly trained multitalented individual that can wor/ in different department and respond -uic/ly to any urgent departmental need. This set!up enables free flow of information and data exchange among team member and minimiBed bureaucracy.
*ara organisation Culture The prevailing Cara corporate culture play pivotal role in successful implementation of the company strategy. The company consider people as the great asset in achieving corporate goals, right people are put in the right role wor/ing within the team toward common value alignment in meeting customers needs. The prevailing culture fruitfulness is due to management that recognise people as the success driver of Cara. E# erimental culture The Cara employees are associated with freedom, the culture permit staffs to experiment and apply common sense in the process. They allow trying and ma/ing mista/e, and learn from mista/e. Creative and innovative The company create environment that encourage creative and innovative minded wor/force, the product development teams attend high fashion fairs and exhibitions, travel to schools, clubs around the world to trac/ current in vogue fashion and customer fashion preference. Cara culture strongly favours human intuition, vision, and judgment.
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.uic, res onsive !or,force The fast!fashion retail business model Cara adopted re-uired flexibility and -uic/ responsive wor/force, the wor/ing environment hectic create a culture of speedy responsive wor/ers, that always at their feet to act and ma/e swift decision to satisfy customers. Staffs recognition The company culture that recognised talented wor/ers contribution to the growth of the business by promotion within the business units. It understands that success of the company is the product of the creative hardwor/ing staffs. These staffs need recognition for them to be motivated and committed. Cara corporate cultures celebrate staffs success and motivate them by challenge individual staffs at the beginning of every year to personal improvement programs. In fact, majority of Bara managers start as a shop assistant. Customer-focus team The multidisciplinary team approach Cara adopted permit collaboration and excellent internal customer service which mirror the way the company service the external customers to achieve corporate strategic intent of customer focus. The customer assistants in Cara store understand that customers do not buy only products, the experience as to be enjoyable. The team meet customer daily demand by ensure products availability and high level of customer service as permit by individual countries culture. To meet customers challenge the team review basic customer service points for 1= minutes in a daily team meeting before open hours.
visited or buyers preference of the same item. The .maBon e!commerce application responds in real!time to input feed!in by shoppers to create feedbac/ loop as customers continue interaction with the application. The one clic/ ordering removed hassle from purchase of products, preload of information in real!time and provide the customers with multiple choices of similar products. The e!commerce application instils personalisation experience on customers. .maBon formed collaboration and partnership among the suppliers, sellers, and independent producers through integrated e!procurement application that speed information and communication through the supply chain. This improves customer relationship among the supply chain partners. The information flows through automatic issue of purchase order $2?' to manufacturers or suppliers of products, e!procurement application interface EA21E0I system that lin/ suppliers operation with .maBon operation at the bac/!end. The operation lin/age enables inventory visibility among partners, order availability ensured, each suppliers stoc/ held visible to all. This enhanced order fulfilment from one end of the pipeline to another, to ensure time utility in delight customers. The fulfilment centre ena The ability to plan, coordinate and control replenishment order system, customer order cycle to order fulfilment cycle reliant on effective communication, sharing of information and /nowledge base between .maBon multi!disciplinary team and the suppliers using e!#ollaboration tools. The system supports communications using e!mail, fax, and telephone. These
applications enables common data standards, enable ease of information management both internal and external among networ/ of suppliers within .maBon supply chain, and reduce uncertainty in decision!ma/ing, whilst bac/ and forth information and /nowledge sharing among these wor/group facilitated end!to!end management of order which enhance customers experience from order placement to final delivery.
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the bac/bone of Cara, whose sense of responsibility, innovation, creativity, and swift response to customers trendy fashion re-uirements drive Cara. S,ilful /esigners Cara creative and innovative designers are the intellectual bac/bone of the company they could copy high street couture design with precision, or respond to store manager suggestion in regard to particular design and deliver to mar/et within short period. E# erience sale assistance The frontline staffs are the first line of contact with customers, the battle raises and falls by
them, in Cara more than &,J of training budget allocated to store personnel. These groups of
staffs are courteous, /nowledgeable, and committed to their wor/. They are well!trained to create positive memorable experience that will linger in the mind of customers for long .
Promote 0earning Cara views training and development of employees as a /ey activity to company growth, the company invested heavily on training and individual development of their staffs to sustain high level of creativity and innovation the business model re-uired. The company ensure internal training given is adapted to needs of the groups and personal development of staffs, the training program completion boost employee chance of promotion within the company. To continue learning, Cara provides wor/ manual in all store to be referenced at all time.
Team!or,
The multidisciplinary teams wor/ in collaboration ensuring mar/et demand are met, these teams are lin/ed to goal of achieving excellent customer service. There sense of initiative and enthusiasm, commitment and self!fulfilment are the /ey values that drive the company success. The multidisciplinary approach enables the groups to resolve problem in time, -uic/ responsive to mar/et demand, ma/e dynamic decisions -uc/ly, and reduce bottlenec/s. Em loyees Em o!erment The employees are granted great autonomy, freedom to ma/e decision and ta/e action when necessary. The designers decide what clothes should be in stores at what colour, select fabric, and print choice. They gather necessary customers intelligent and creatively designed appropriate garments that match current fashion trend.
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Every business model have strengths and wea/nesses, from customer service perspective of 3ront!*oaded $.maBon inc' and bac/!loaded $Cara' the following represents the internal strengths and wea/nesses of both business model. 1ront-0oaded 2Ama)on%com3 strengths .ccessible +;hrs, 9 days a wee/ and location convenience. Dell established brand name 8nowledgeable and Intellectual wor/force Aapid pace of innovation <ighly automated fulfilment centre and warehouse. 2rovide wide range of products offering in different categories. <igh products information
1ront-0oaded 2Ama)on%com3 Wea,nesses 5ulnera!le to online frauds. <igh inventory holding cost. Technology outage will significantly affect operation. The business model is exposed to hac/ers attac/. It depends on regular supply of boo/s or other products from suppliers. 0ue to web site traffic, the web application might be slow or crash during order placement. 2roducts lac/ touch and feel.
4ac,-loaded 2*ara3 strengths #lose proximity of production #luster of multidisciplinary teams <ighly (/ilful designers <ighly trained and /nowledgeable shop assistant <igh!profile location
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4ac,-loaded 2*ara3 Wea,nesses <ighly assets intensive business model .rtificial scarcity created will generate negative experience in eye of customers #arry extra capacity Total sales achieved by store managers affect promotion and compensation. The im act of 1ront-loaded and bac,-loaded customer Service Strategy on SCM The /ey objective of supply chain management is to enhance customer service, and optimise total supply chain investment and cost. Increasingly time to mar/et is becoming competitive advantage as in case of .maBon that respond to order with speedy delivery and Bara that compressed design to store lead!time cycle. The two customer service strategies are driven by customers demand, meeting and exceeding customers specific re-uirement without jeopardise cost and investment is supply chain conundrum. Inventory to cash Trans ortation cost Infrastructure investment 0ead time com ression 1ront-loaded 2Ama)on3 customer Service Strategy im act on SCM The front!loaded customer service strategy reliant on fast, efficient, and flexible order pic/ing. at reduce cost of pic/ing and pac/ing whilst increase cost of transportation due to fre-uent delivery of small batch order to various customers. The *ead!time cycle reduction impact on wor/ing capital, reflect on cash flow. 4ac,-loaded 2*ara3 customer Service Strategy im act on SCM Two issues that should be considered when deciding whether to vertically integrate is cost and control. The cost aspect depends on the cost of mar/et transactions between firms versus the cost of administering the same activities internally within a single firm. The second issue is the impact of asset control, which can impact barriers to entry and which can assure cooperation of /ey value!adding players.
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The /ey to success of front!loaded $.maBon' and bac/!loaded $Cara' strategy is in understand customers expectation and using internal capability to meet those expectations. the customers they served as the Effective elimination of error associate with paper driven processes.
reducing transaction costs between buyer and seller
The information and communication technology played a centre role in evolution of supply chain management and e!business is a subset of (#" that heavily bui
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#onclusion
The success of most of today s businesses depends more on human assets than on physical or financial assets. 6uildings, e-uipment, manufacturing facilities, and most technologies can be readily purchased,but the human talent and /now!how needed to drive our /nowledge!based industries are much harder to come by.
"eference$
1. +. 4. ;. .maBon.com, Inc. +,,% .nnual Aeport, httpK11phx.corporate!ir.net1phoenix.BhtmlLcM%9>>;NpMirol!reportsannual (aunders, A, .maBon.com way, secrets of the world s most astonishing web business, #apstone 2ublishing. $+,,1'. Inditex group, .nnual report +,,%, www.inditex.com1en1shareholdersOandOinvestors1investorOrelations1annualOreports
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A%& Ama)on%com .maBon.com Inc. was incorporated in the state of Dashington in 1%%;. ?pened online store on Fuly 1%%= and offer EarthPs biggest selection of boo/s. The company is considered as the biggest online boo/ store, growth and expansion propelled .maBon to different direction to become EarthPs biggest place for anything, provide diversified products offering such as, boo/s, 5<( tapes, 050s, music #0s, computer software , video games, electronics, "24s, clothing, furniture, toys, tools, /itchenware and food items. .maBon see/s to be earth most customer!centric organisation for three primary set of customers, consumers, sellers, and developers. .maBon operations are geographically grouped into two business segment, )orth .merica and International both combined employed approximately +;,4,, full!time and part!time employees as at 41st of 0ecember, +,,%. .maBon generated gross profit of Q=.%1 billion in +,,%, sales revenue increased +&J $Q+;.=1 billion', 1= times higher than 1, years ago, cash flow increased 11;J year!over!year to Q+.%+ billion in +,1,. The numbers of varieties of products available for shipment increase more than =,J and +1 new products categories was added globally in +,,%, which include automotive in Fapan, baby in 3rance, shoes and apparel in #hina. A%' *ara Cara is a subsidiary of Inditex fashion distribution group which consisted of eight commercial formats. Cara was launched in 1%9=, and open it first fashion retail store the same year in *a #oruna in (pain, specialised in apparel, footwear, and accessories for children, women, and men. Cara is one of the largest apparel retailers in the world and the most lucrative among the Inditex group. The Inditex business model configuration is vertical integration of all the fashion business productions, from concept to design, manufacture, physical distribution, and sale at own global retail stores. Dithin short time frame, Cara becomes renowned brand name globally with 1,>,& stores spread across the continent in 9; countries, and contributes >4.&J total sale of ++
Inditex group to generated 9,,99 )et (ales as at end of +,,%. The inditex group employed %+, 4,1 staffs of which &1.;J are women and 1&.>J are men with 1;, nationalities.
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