Customer Service, Essay Example

Manufacturing

The most important service factors to buyers in manufacturing may be time and dependability (Kerin, Hartley, & Rudelius, 2010). More and more manufacturing companies are adopting Just-in-Time inventory systems in which inventory is only ordered when it is received (Toyota). There are several benefits to Just-in-Time such as avoiding the need to store inventory which doesn’t only result in storage costs but also leads to unproductive tie-up of resources. Similarly, companies can also avoid wear and tear costs. But in order to make sure companies do not need to store inventory and can get them as soon as they need, they look for reliable suppliers. Thus, time and dependability are important customer service factors. In other words, suppliers should be able to fulfill inventory orders as soon as manufacturing companies need them and whenever they need them. The manufacturing companies also look for dependable suppliers who can not only provide inventory in time but also of quality desired by the manufacturers. Competition has been growing and customers have higher quality expectations, thus, dependability is a major customer service factor sought by manufacturing companies.

Retailing

The most important customer service factors to buyers in retailing may be convenience and dependability (Kerin, Hartley, & Rudelius, 2010). Dependability is important to retailers because items not delivered on time do not only translate to lost sales (Mohebbi, 2003) for the retailer but may also result in permanent loss of customers to the competition. The national retail chain networks may account for bulk of the sales volume in the industry but most of the market players are stand-alone businesses. These small retailers operate under thin margins and any loss of sales has greater impact on their bottom line. Similarly, retailers also look for convenience such as on-time delivery of items to their store locations by the manufacturer or distribution intermediary at regular intervals. This is especially true for fast-moving items that require quick replenishment. Unlike large retail networks, smaller retailers do not always have the resources to develop their own supply chain infrastructure. As a result, they do not only depend upon manufacturers for inventory but also timely delivery of inventories.

Hospitals

The customer service factors most important to businesses are not only determined by their resources or competitive environment but may also be determined by the characteristics and needs of the customers they serve. Time is often the most important factor to patients who come for treatment which in turn also makes it one of the most important customer service factors to hospitals. Thus, the most important customer service factors for hospitals are time and dependability. Hospitals provide time-sensitive and life-saving services to the patients, thus, the stakes are high. Hospitals cannot predict their needs as accurately as other organizations, especially those who provide emergency services and they only have a small-time frame to cater to the needs of the patients. Thus, their ability to take care of their patients also relies on a large part on the suppliers who can meet strict time and dependability criteria. Some organizations seek a balance between cost and dependability but not hospitals to whom cost is often a secondary consideration due to high opportunity cost. The high opportunity cost doesn’t only arise due to the question of human lives but also the risk of costly lawsuits on the basis of medical malpractice or negligence. Hospitals can also choose to ignore costs because they are often funded by the public due to being the provider of essential services.

Construction

The most important customer service factors to a construction company may be communication and convenience. Construction companies often work on huge projects with significant time and resource commitments and similarly, many projects are developed according to customers’ unique specifications. As a result, communication is extremely important because any mistakes may turn out to be quite expensive in terms of time and cost. The importance of communication also arises due to the fact that construction plans are rarely written in stone and changes may occur due to a variety of reasons such as a change in the economic environment, evolving client tastes or needs, new regulations that affect construction design or development processes, unexpected costs, or a change in client’s financial position. Similarly, construction projects also make use of inventory materials from countless number of suppliers and some materials may have to be sourced from other geographical regions. Thus, convenience is important to construction companies, especially in terms of transportation as custom transportation solutions are often needed for bulky and/or rare supplies.

References

Kerin, R., Hartley, S., & Rudelius, W. (2010). Managing Marketing Channels and Supply Chains. In Marketing: The Core (4 ed.). McGraw-Hill/Irwin.

Mohebbi, E. (2003). Supply interruptions in a lost-sales inventory system with random lead time. Computers & Operations Research, 30, pp. 411-426.

Toyota. (n.d.). Just-in-Time — Philosophy of complete elimination of waste. Retrieved November 7, 2013, from http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/just-in-time.html