High Level Of Customer Service Research Articles

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.

Breaking the Rules for Better Service

It is no secret that often there's room for improvement in the service sector. One reason may be that some company policies do not support employee decisions that allow for high levels of customer service. This article takes a look at people who succeeded in climbing the management ladder in the food-service industry. Some findings about personality factors that make for success in management raise questions about the possibility of improving service. The major obstacle to providing excellent service may be the strong tendency toward conformity in our organizations. Existing decision-making policies, coupled with the manner in which organizations reward conforming behavior, present an overwhelming challenge to companies hoping to attract and retain customers through exceptional service.

THE ECONOMICS OF CAPACITY AND MARKETING MEASURES IN A SIMPLE MANUFACTURING ENVIRONMENT

As manufacturing firms push to achieve shorter lead times and higher levels of customer service, the basic capability of underlying manufacturing processes must be reexamined. The capacity and operational variability of a process dictate a certain set of realistic performance goals. In this paper, we examine this fundamental relationship from an economic perspective using two levels of analysis. At the aggregate level, we model the manufacturing process as a single server queue and compare the traditional roles of marketing and manufacturing in setting performance and process design parameters. Insights gained at this level are incorporated into the analysis of a realistic multiserver, multistation manufacturing line. We develop an interaction decision tool to guide the selection of process and performance parameters in this more complex environment.

Where Technology Provides the Service Solution

Explores how Midland, with its Firstdirect Bank (telephone‐based direct banking system), led the way in meeting the customers’ demand for improved, more personal service, with reduced operating costs. Looks at Midland’s background as an innovator and the deployment of technology needed for the project. Finds out who Firstdirect’s customers are and how their needs are met. Suggests that the key to success is that “back‐office” bankers are on an equal footing with front‐line staff. Maintains that Firstdirect will continue to lead the way in meeting the demand for personal 24‐hour, year‐round service, with its high level of customer service and its efforts to reduce costs and eliminate errors

Managing service quality: developing a vision and a strategy

Many service sector organizations are currently developing and implementing a quality improvement programme and some have achieved considerable success as a result. Developing a vision and a strategy for managing service quality is vital for competitive advantage. An analysis of customers, competitors and the corporation is necessary in the process of strategy development. In particular, identifying service quality attributes and achieving a balance between these is important. As well as discussing the above, this paper describes how two service companies have successfully adopted the total quality management philosophy to achieve higher levels of customer service, greater employee involvement and greater reduction in costs.

Does Your Company Need a Logistical Executive?

Traditional responsibility for logistical management has been fragmented throughout the organization. In the past, companies were able to control the various parts of the goods flow independently of each other because of long throughput times and by keeping considerable inventories. Today, customers demand an increasingly higher level of customer service. The fully integrated control of all aspects of the goods flow, integrated logistical management, has thus become a necessity. Companies must not be confronted with overly high logistical cost or too low customer service performance. It is often assumed that appointing a logistics executive solves logistical problems (low service performance, high inventory levels or high logistical cost). The following article provides answers to practical questions such as ‘does a company need a logistics executive?’. The authors will show that the answers to these questions depend on the company's logistical complexity and task predictablity.

COORDINATION ALTERNATIVES IN A MANUFACTURER/DEALER INVENTORY SYSTEM UNDER STOCHASTIC DEMAND

This paper introduces a stochastic model of a distribution system where the stocking location is owned by a dealer (or retailer) and the product is supplied by a manufacturer. Inventory is managed by the dealer, and the manufacturer is responsible for delivery of the product through both regular replenishment and expedite shipment modes. The dealer and the manufacturer share the goal of providing a high level of customer service. Demand, moreover, is a function of the service level offered to the market by the dealer. We develop optimal stock control policies for the cases where each decision maker in turn is dominant and acts unilaterally while being constrained by the supply/demand linkages of the system. We also develop an optimum policy for the case where both levels are managed under centralized control (i.e., both levels cooperate). Results indicate that the expected profit for a dominant dealer (or dominant manufacturer) is higher under decentralized control than the optimal solution for either under centralized control. However, the centralized solution is a global‐optimal solution and therefore will guarantee longterm stability. Differences between the various solutions are analyzed explicitly to estimate the cost of coordination.

Clarity of purpose in ‘nervous’ planning systems

Implementing planning and manufacturing systems to support volatile process manufacturing environments must be accompanied by a consistent vision of how the business strategy is expressed in each component of the total system. The traditional approaches do not always apply readily to the nervous environment, and some reengineering of the planning process is useful to achieve high levels of customer service with reasonable costs. This paper describes analysis and implementation of layered, complementary systems for enterprises where unpredictability is the key fact of life.

TRADE-OFF BETWEEN LOGISTIC COST AND CUSTOMER SERVICE FOR GOODS DISTRIBUTION IN AN URBAN AREA

This paper makes an analytical and empirical study of distributing items by trucks from a supplier to many customers located in a surrounding region. The total logistic cost of a supplier and customers is formulated and minimized to determine the optimal time between dispatches. Customer service must be simultaneously considered for logistics management and its factors are represented by both average lead-time and the time between deliveries to each customer. The empirical analysis of trade-off between logistic cost and customer service implies that a supplier tries to gurantee higher level of customer service than that achieved by total cost minimization. This is a feature of Just-in-Time distribution strategies.

Freezing the Master Production Schedule Under Demand Uncertainty

ABSTRACTManaging the trade‐off between achieving a stable master production schedule (MPS) and being responsive to changes in customer requirements is a difficult problem in many firms where providing a high level of customer service is viewed as an important competitive factor. One alternative for managing this trade‐off is to freeze an agreed portion of the MPS. This paper investigates the impact of adjustments in the design parameters of MPS freezing methods on two performance measures (MPS lot‐sizing cost and stability) under stochastic demand conditions in a rolling planning horizon environment given a service level target. Simulation experiments are reported which indicate that many of the conclusions regarding the design of MPS freezing methods obtained under deterministic demand conditions hold under stochastic demand.

IKEA

It is rare for a single store opening in Warrington, north‐west England, to arouse concern amongst UK retailers. However, when that store is a 182,000 sq ft outlet for the Swedish furniture and home furnishings retailer IKEA, representing the Company's first foray into the UK market, the disquiet becomes understandable. IKEA have established an enviable reputation for combining competitive pricing with high quality merchandise, within an attractive store setting. IKEA's high level of customer service is well‐known and contrasts with the current practices of many flat‐pack retailers in the UK. The Company's apparent ability to translate similar store formats and product ranges internationally, whilst encouraging a certain degree of product sourcing from within the host country, is effective. These features are derived from a corporate culture and spirit personally driven, until recently, by the Company's founder, Ingvar Kamprad. This article reviews the history of IKEA, its level of international representation, its marketing and presentational style.

A Nonlinear Zero-One Combinatorial, Goal-Programming Model and Constructive Algorithm for Solving Multiobjective Assignment Problems

This paper describes a technique for assigning orders against specific reels of inventoried cable to ensure a high level of customer service, efficient labor utilization, highly usable cable lengths in inventory, and minimal scrap. Some orders are interrelated and thus linked, requiring that the assignment of each order be contingent upon the assignment of all linked orders. Due to this contingency, penalties associated with certain assignments, and selection allowances, the problem is quite complex. Our method of solution is formulated as a preemptive, multipriority, zero-one goal programming model used in a constructive initial placement algorithm. The model is primarily linear, but it also contains some nonlinear terms. The goal programming model and initial constructive algorithm run weekly in a production environment that handles up to 100 orders and 150 reels per problem.

The use of computers in department stores

The department store's twin characteristics of a wide range of merchandise and a high level of customer service compel it to react quickly to a constantly changing and a more sophisticated customer base. The customer also looks for service ‐ credit, delivery, and after sales. Originally computers were used in department stores only for payroll and purchase ledger. Now the objective is to run the entire trading operation round an integrated computer system. It is primarily in the area of conveying timely and accurate information to executives responsible for taking decisions, that computers are making the greatest impact on the department store trade.