High Level Of Customer Service Research Articles

'Fun and surveillance': the paradox of high commitment management in call centres

Much of the research into telephone call centres has focused on the coercive employment systems which are adopted in these organizations. This appears to contrast with the high levels of customer service and satisfaction which are often required for them to be successful. Our research, which is based on two case studies of call centres studied in depth, challenges this 'satanic mills' image. We explore the ways in which both companies sought to balance the pressures in the product and labour markets and employee needs to develop strategies which combined elements of commitment and control. They developed sophisticated human resource practices, which resembled the high commitment management approach, while, at the same time, maintaining a highly controlled and measured work environment. Consequently, there was a greater alignment between their HR practices and control systems, the needs of employees and the high quality of interactions with customers expected. This suggests that high commitment practices are not automatically associated with extensive employee discretion, as has been argued in the manufacturing sector. HR practices of this kind can be used to offset some of the worst features of call centre working. These findings illustrate the variety of HR practices in call centres and suggest some possible reasons for this diversity.

Best practices in customer service

Why should my employees and I care about delivering great service? How can I learn more about customer needs and desires? How do other companies deliver superior service? How do I build long-term relationships with customers? The litany of customer service questions goes on and on...Best Practices in Customer Service is a one-stop resource designed to help anyone involved in customer service answer these questions and more. With 35 chapters written by customer service experts, it illustrates best practices in customer service and provides the tools readers need to implement those practices in their own companies. From classic issues like customer retention to contemporary concerns like providing customer service on the Internet, it helps readers: fully understand the connection between excellent customer service and organizational performance; deliver a higher level of customer service at a lower cost; and, develop a customer base that fuels growth and profitability.

Beyond Self-Management: Antecedents and Consequences of Team Empowerment

We examined the antecedents, consequences, and mediational role of team empowerment using 111 work teams in four organizations. The results indicated that the actions of external leaders, the production/service responsibilities given to teams, team-based human resources policies, and the social structure of teams all worked to enhance employee team empowerment experiences. More empowered teams were also more productive and proactive than less empowered teams and had higher levels of customer service, job satisfaction, and organizational and team commitment.

BEYOND SELF-MANAGEMENT: ANTECEDENTS AND CONSEQUENCES OF TEAM EMPOWERMENT.

We examined the antecedents, consequences, and mediational role of team empowerment using 111 work teams in four organizations. The results indicated that the actions of external leaders, the production/service responsibilities given to teams, team-based human resources policies, and the social structure of teams all worked to enhance employee team empowerment experiences. More empowered teams were also more productive and proactive than less empowered teams and had higher levels of customer service, job satisfaction, and organizational and team commitment.

Seven keys to better forecasting

44 S ales forecasting is a management function that companies often fail to recognize as a key contributor to corporate success. From a top-line perspective, accurate sales forecasts allow a company to provide high levels of customer service. When demand can be predicted accurately, it can be met in a timely and efficient manner, keeping both channel partners and final customers satisfied. Accurate forecasts help a company avoid lost sales or stock-out situations, and prevent customers from going to competitors. At the bottom line, the effect of accurate forecasts can be profound. Raw materials and component parts can be purchased much more cost-effectively when last minute, spot market purchases can be avoided. Such expenses can be eliminated by accurately forecasting production needs. Similarly, logistical services can be obtained at a much lower cost through long-term contracts rather than through spot market arrangements. However, these contracts can only work when demand can be predicted accurately. Perhaps most important, accurate forecasting can have a profound impact on a company's inventory levels. In a sense, inventory exists to provide a buffer for inaccurate forecasts. Thus, the more accurate the forecasts, the less inventory that needs to be carried, with all the well-understood cost savings that brings. The ultimate effects of sales forecasting excellence can be dramatic. Mentzer and Schroeter (1993) describe how Brake Parts, Inc., a manufacturer of automotive aftermarket parts, improved its bottom line by $6 million per month after Excellence in sales forecasting can boost a firm 's financial health and gratify customers and employees alike, launching a company-wide effort to improve sales forecasting effectiveness. Nevertheless, firms often fail to recognize the importance of this critical management function. Our objective here is to take what we've learned about sales forecasting from working with hundreds of companies, and summarize that learning into seven key focus points (summarized in Figure 1) that will help any company improve its forecasting performance. Although no management function can be reduced to seven keys, or 70 keys for that matter, our hope is that the ideas presented here will inspire senior management to look closely at their own sales forecasting practices and recognize opportunities for improvement.

On Inventory Abatement via Manufacturing Randomness Reductions*

ABSTRACTUnder a continuous improvement framework, the policy of abating inventory via reductions in manufacturing randomness is considered. To explore this policy, a model of a real‐world production‐inventory system is developed, tested, and studied. The results suggest that manufacturing randomness reductions, even substantial ones, may not necessarily lead to inventory abatement, and paradoxically may lead sometimes to an inventory increase. In these cases, however, manufacturing randomness reductions will translate into higher customer service levels.

Supply chain management: A case study of issues for BioAg

Supply chain management has become an increasingly important topic to agribusiness managers during the past five years. Drivers of this trend include buyers seeking higher levels of customer service and efforts by firms to control costs, especially inventory. This case introduces the reader to supply chain management. It would work well either as part of a capstone course, in a special topics course, or in an executive education course. The case explores some of the issues and dilemmas associated with supply chain management efforts at BioAg, a small Midwestern firm that manufactures agricultural chemicals that are environmentally sensitive.

Linking Customer Service Orientation to Competitive Performance: Does the Marketing Concept Really Work?

The operation of all business enterprises is guided by some overriding, decision-making philosophy. In today’s market a "customer orientation" philosophy has been widely adopted. This philosophy can be operationalized as the marketing concept. However, the marketing concept’s link to actual business performance has received little empirical verification. This study compares 188 manufucturing firms grouped by level of customer service orientation. The results of a mailed questionnaire show that firms reporting a high level of customer service outperform low level service firms on ten of twelve measures of operational and financial performance. These findings empirically demonstrate a positive linkage between a customer-service-driven market orientation and superior performance in business operations.

Surface Freight Prospects

In 1980, the United States introduced a fundamental shift in government policy toward the surface freight transportation industry, away from regulation of rates and entry to a market-based system. Under deregulation, the surface freight industry has experienced significant efficiency gains resulting in a higher level of customer service at lower prices in real terms. Reliance on a competitive marketplace will allow these gains to continue as the nation moves into the twenty-first century. The overall efficiency of the surface transportation system will be ensured by the almost complete reliance by shippers on third parties for logistics management. These third-party experts will assist companies in minimizing their total logistics costs. Overall, this nation's surface transportation system in the mid-twenty-first century will be a highly efficient intermodal system that provides U.S. industry with a competitive advantage in its effort to achieve market gains in a global economy.

Dynamic simulation modelling for lean logistics

The Law of Industrial Dynamics ensures that if a production control system can amplify then it will surely find a way of doing so despite the best efforts of production schedulers to take corrective action. In fact, practical studies show that such human intervention frequently aggravates the situation with both stock levels and order rates fluctuating alarmingly. The solution is to design an effective system via simulation. This requires the selection of the appropriate control system structure, agreement on the test cases to be used to mimic the operating environment, and finally setting the system parameters to achieve best performance for this scenario. Demonstrates a system which has three controllers utilizing sales, inventory and work in progress (WIP) data to set production order rates. The resulting decision support system (DSS) is a generic tool that can be used by production schedulers with confidence in the knowledge that the Law of Industrial Dynamics effects may be minimized. Simulation experiments can determine the best available trade‐off in any particular situation such as achieving the lean logistics aim of minimum reasonable inventory (MRI) while retaining high customer service levels (CSL). The experimental facility available within the simulation model includes provision for assessing the impact of variable production lead times and information delays on system performance. Describes a specific application of the DSS and the specific improvements in a company’s performance. Places the DSS in the context of a case‐based reasoning environment in which a knowledge base of system structures and their dynamic properties is achieved. Outlines the opportunity of utilizing the DSS in uncertain lead‐time environments in a range of industry sectors.

Analysis and design of an adaptive minimum reasonable inventory control system

A Master Production Scheduling Decision Support System within a multi-product medical supplies market has the dual task of providing good customer service levels while maintaining minimum reasonable levels of finished goods stock in the face of considerable internal manufacturing lead time and customer demand uncertainty. This paper examines the critical design parameters within an adaptive model highlighting how the total system orders in the internal pipeline are utilized in the decision-making process for assessing how much to load the internal manufacturing pipeline. Two different methods for tracking manufacturing lead times within the adaptive loop are also considered. Classical control concepts are applied within the Decision Support System (DSS) to avoid any long-term drift in finished stocks. Finally scenario analysis is performed via simulation for a set of design parameters and a range of stimuli typical of company operating situations. An effective decision support system design in terms of architecture and parameter settings is recommended based upon the ability of the model to maintain high customer service levels. The DSS readily interfaces between marketing and production functions to enhance company competitive advantage across a wide range of products.

Getting out the message: media and message for effective driver recruitment

The challenges facing the motor carrier industry in the mid-nineties serve notice that there is no such thing as business as usual. The 1980s were marked by the opportunities and challenges presented by the abrupt introduction of the marketing era and free entry brought about by the passage of the Motor Carrier Act of 1980. Carrier management was forced to negotiate in an environment of increased competition, over capacity, and shipper demands for higher levels of customer service. At the same time, they were given new tools such as multi-modal ownership, route freedom, and negotiated contract terms to meet the higher service expectations of shippers. The rapidly changing operating environment of the 1990's has been characterized by the introduction of a new set of uncertainties. Recognition of logistics as the last frontier for cutting costs and creating competitive advantage has led to an emphasis on developing integrated supply chains. An increased use of third parties and contract logistics, rapid strides in the development and use of technological tools, and development of long term supply chain relationships have come as a direct result. These changes are taking place within the context of a greater global orientation with its characteristic challenges of time and distance, facility and technological availability, and political and regulatory concerns. Operating within these environmental constraints has placed increased service demands on motor carriers called upon to supply the transportation links between supply chain members. The carrier's ability to meet those service demands in many cases hinges on the performance of the driver. OVERVIEW Studies have documented the importance of the performance of contact personnel for actual service delivery and customer perceptions of service quality. (1) There is increased pressure on today's workforce to deliver the level of service demanded by customers. For motor carriers, driver performance may be critical to the successful fulfillment of customer expectations. (2) The importance of contact personnel in the delivery of services highlights the need for motor carriers to develop and maintain a skilled and stable driver pool. (3) Yet, driver turnover rates continue to be in excess of 100% per year for many carriers. (4) This means that carrier management must continuously seek to attract and retain qualified drivers. (5) Attracting drivers and retaining them represent two separate issues. Retention concerns the efforts made by the carrier to determine the incentives and working conditions needed to retain those drivers who are satisfactorily meeting the requisite performance standards. Recruiting concerns the communication of employment opportunities and conditions in an effort to attract drivers who are qualified, willing, and able to perform the tasks necessary to meet the standards of performance mandated by the carrier and the carrier's customers. Recruitment advertising studies range from the development of an Applicant Attraction Strategy (6) to determining the most appropriate advertising messages. (7) Studies have also focused on the use of the individual communication methods. Magnus noted that while the same basic communication methods are being used, there has been a move to use more innovativeness and creativity to achieve the desired results. (8) Examples of this include the use of direct mail, televised interviews and cooperative programs with training institutions. DESCRIPTION OF THE STUDY Recruiting costs may vary for different companies. However, those costs which are a part of finding and preparing a driver to fulfill his/her role as the provider of transportation services include; advertising costs, recruiter travel, referral bonuses, the recruiter's salary and benefits, and any training and administrative costs related to preparing the driver to assume his/her role as a qualified service provider. …

Inventories and customer service in Polish manufacturing companies

Challenging task of reconstruction of the Polish economy caused that the details of efficient company's management tend to be neglected too often. Marketing and sales seem to be the current issues since the demand constraint puts severe limits to the volume of goods sold. The theory of the principles of modern logistics management becomes more and more popular; however, the precise tools and methods for managing effectively the flows of goods are not a common knowledge of the majority of managers as yet. One of the major problems in the nearest future of Polish companies would concern strategy and management of customer service. The managers in Polish companies slowly becomes aware of the fact that a business that is successful in the long term is one of that provides for the needs of its customers better than its competition. However, performance measures of customer service are not widely used and recorded in many companies. An awareness of potential impact of the customer service on many aspects of the firm needs to be developed, so that it would help management increase the efficiency and effectiveness of a firm's competitive position. Inventories may support the customer service policy of a company, contributing to the net profits. On the contrary, inventories may be considered as a source of additional costs, therefore imposing some restrictions on reaching high levels of customer service. In both cases inventories play an essential role in shaping the final level of customer service in companies. The paper addresses all the above mentioned problems. It has been based on the results of the survey on logistics management made in a sample of Polish manufacturing companies in 1993 and 1994.

Customer Service

Abstract Maintaining a high level of customer service is one of the best methods of retaining current clients and attracting new ones. Two concepts currently in favor, Total Quality Management and Continuous Quality Improvement, dominate recent thought. This paper builds on these concepts and the basic principles of marketing, to simplify the implementation process. For want of better terms, the author has adopted “LCD” (Lowest Common Denominator) and “Fail-Safe” to describe this approach. LCD encourages simplification so that the newest and least trained employee will be able to work within the system. A Fail-Safe system is designed to be “Customer Friendly” even when an error takes place.

A field service support system using a queueing network model and the priority MVA algorithm

In many companies, the field service (FS) department plays an important role, contributing up to 40% to the company's total revenue. FS managers have to cope with conflicting objectives: (a) to maintain a high level of customer service and (b) to keep the spares inventory level as low as possible. Therefore, they need tools to analyse the impact of their decisions on customer service and inventory cost. Such a tool is presented in this paper. We have developed a closed queueing network model, similar to one due to Waller, incorporating priority classes of customers via the application of the priority mean value analysis (PMVA) algorithm, developed by Shalev-Oren et al. This model has been applied to the FS organization of the Greek subsidiary of a multinational computer company, and it has proved to be very efficient from the computational point of view, thus constituting a powerful tool for the FS managers.

Customer service: the distribution of seasonal food products under risk

Addresses important logistical considerations in the distribution of a seasonal food product. While continued attempts have been made to maintain high levels of customer service within the food industry, the degree of uncertainty in the distribution channel itself often undermines management’s efforts to procure adequate stock of product during peak demand season. Develops a stochastic dynamic programming formulation which may serve as a decision‐support tool for managers faced with procuring product in a distribution channel in which receipt quantities are probabilistic. Provides numerical results, supporting the intuitive result that expected costs and the length of the required planning horizon are inversely related to the level of uncertainty in the distribution channel.

Projecting on-time performance for deterministic schedules in dynamic environments

Manufacturing in a world class environment demands a high level of customer service. The production control department is responsible for achieving this high level of service through accurate planning and scheduling. The ability to achieve such a high level of customer service is limited by the scheduling tools currently available. Production planning is typically performed using MRP infinite capacity, fixed lead-time, backward scheduling. The work in each MRP time-bucket is then sequenced to develop a schedule. The production floor however, is not a static environment. Dynamic events, that cannot be scheduled, degrade production performance relative to the projected schedule. In this paper the relationship between dynamic events and schedule degradation is examined. Common approaches to production scheduling underestimate the effect of capacity loading relative to unplanned events and schedule achievability. These dynamic events exhaust capacity previously allocated to production orders. To hedge against such known, but unscheduled events, production control can schedule resources to a level less than full capacity. The size of the capacity hedge and the duration of the unplanned event dictate the time to recover from the backlog created by these dynamic events. A performance metric is developed to measure the ability to achieve customer promise dates. A machine loading policy is also presented to achieve the optimal capacity hedge point that will maximize this performance measure. The results are compared to simulated failures to examine the accuracy of the predicted performance degradation. The results suggest a trade-off of throughput for improved performance to customer promise date.

Delight makes the difference: the story of AT&T Universal Card

In March 1990, AT&T entered the credit card business under a unique set of circumstances; from its first day in existence, the company’s credit card subsidiary built itself up, based on total quality management principles. While most firms embracing total quality management have had to fit their principles into an already dynamic business environment, AT&T Universal Card Services (UCS) has never existed without them. Thus, UCS’s story may provide a fresh perspective for those interested in quality implementation. Coming into an industry not noted for high levels of customer service, UCS saw that it could distinguish itself by focusing in this area. A formalized programme for collecting a broad array of information from customers helps UCS keep apprised of what customers value in their credit card companies. Processes are in place for applying this information and measuring the company’s performance in key customer‐impacting areas. UCS, which won the Malcolm Baldrige national quality award in 1992, is currently the second‐largest issuer of bank credit cards in the USA with 15 million accounts. The company credits its use of total quality management for its business success – and is confident the same methods will continue to serve it well in its increasingly competitive future.

A computer‐aided inventory management system – part 1: forecasting

Argues that the mathematical techniques embodied in existing computer‐based inventory management systems software have not kept pace with developments. Describes the development of ABC‐classified stock analysis and demand forecasting modules, to be integrated into an existing materials management system, which enable a major cutting‐tool manufacturer to minimize its stockholding costs while providing a high level of customer service.

Supply Chain Reengineering: A Supplier's Perspective

One of the more significant structural changes in Western manufacturing industry is the redistribution of “value addition activities” in product supply chains. Final assemblers are often choosing to subcontract the design and manufacture of large sections of their products in an attempt to focus their effort. In turn suppliers take on more of the design and assembly of the end product and may also choose to delegate some of their own activities to second line suppliers. These changes require that the profile of capabilities necessary to design and manufacture the product is also redistributed among the partners in the chain. Competition between suppliers is fierce, particularly in view of the fact that the changing structure favors fewer sources. The suppliers which survive will probably be those who successfully position themselves in terms of appropriate value adding capabilities and differentiation through high levels of customer service.