(1) What are some advantages and disadvantages to checking all order.pdf
1. (1) What are some advantages and disadvantages to checking all orders for completeness and
accuracy?
(2) Describe some of the key issues associated with measuring customer service.
Solution
Using key performance indicators (KPIs) tied to customer service metrics helps logistics
providers benchmark their value to shippers.
Delivering highly anticipated video games and movie releases to stores three days prior to their
street date is practically a law in the entertainment industry. So when Camarillo, Calif.-based
Technicolor Global Logistics, the supply chain and logistics arm of entertainment technology
company Technicolor Worldwide, learned that an air shipment headed to Alaska would not make
it on time, its customer service team jumped into action, asking its local last-mile service
provider to call every store expecting delivery and convince the management to stay open extra
hours so Technicolor could make the three-day window.
Technicolor Global Logistics works hard to deliver that level of service, says Elaine Singleton,
the company's vice president of supply chain.
Every company knows customer service is important; but it is seldom well-defined, and even
more rarely measured in logistics operations.
Many logistics service providers tout their customer service excellence, and shippers give equal
voice to the importance of customer service, particularly when the vendor relationship is more
than transactional. But it is often easier to spot a customer service failure than to define
excellence.
Many providers cite standard key performance indicators (KPIs) such as on-time delivery and
order fill rate as proof of their customer service prowess. Others, however, insist customer
service falls into its own category, and deserves its own standards of measurement.
"Customer service is often lumped with service execution, and many businesses don't
differentiate between the two," says Jim Craig, chief marketing officer with third-party logistics
(3PL) provider BNSF Logistics, a wholly owned subsidiary of Burlington Northern Santa Fe
with domestic headquarters in Springdale, Ark. "The KPIs we provide are related to service.
Timely delivery of those KPIs equates to good customer service."
The focus on customer service is starting to increase as some shippers and their service providers
work to develop deeper, more collaborative, and mutually beneficial relationships. At this level,
competently executing services such as warehousing and transportation procurement is expected.
Service providers stand out by adding value, and customer service is a substantial part of the