CAN CUSTOMER SERVICE IN THE FREIGHT INDUSTRY ADD VALUE IN THE SUPPLY CHAIN?
In any industry or organisation, good customer service makes good business sense. Customer service differs from customer satisfaction. Customer service can be seen as the action required to achieve customer satisfaction (Kotler et al. 1998, Ferrer 2007). Good customer service doesn't always guarantee satisfaction however indifferent customer service will almost certainly impact negatively on customer satisfaction and consequently on the business bottom line.
It is a well documented fact that attracting new customers costs more than retaining existing ones and keeping them happy (Kotler et al. 1998). More importantly, wooing back dissatisfied customers can be well nigh impossible, irrespective of cost (Kotler et al. 1998). This essay will seek to highlight how the customer service function within the freight service industry can indeed add significant value to the supply chain in order to meet expectations of customers.
Key strategic customer service elements that providers need to take into consideration to raise customer satisfaction are many. Whilst there are some specific elements at operational level that are unique to freight companies, at a strategic level, the elements that denote best practice customer service can be applied across all industries and organisations (Kotler et al. 1998).
LaLonde & Zinszer (1998 cited by Rutner & Langley 2000) describe the three main components of customer service as satisfying customer's needs, measuring customer service performance and firm-wide commitment. Zhang, Vonderembse & Lim (2005) note such things as the need to integrate planning and operations, develop partnerships and maintain continuous improvement, as does Bag ...