Question

In: Operations Management

Explain why order management and customer service are not mutually exclusive. please give example

Explain why order management and customer service are not mutually exclusive. please give example

Solutions

Expert Solution

Reasons why order management and customer service are not mutually exclusive:

  • Executing customers’ orders by customer service is dependent on ordering patterns of customer
  • activity-based costing is done in order management and customer service to calculate costs in engaging sufficient man power from customer service for managing orders
  • in many companies, customer service team is responsible for checking any stock outs
  • Organizations do practice the manner by which its customers place orders for prompt delivery/ customer delight etc.
  • Performance level and delivery capability of customer service team affects strategic, tactical, and operational aspects of order management
  • Customer service level/ action can affect a firm’s delivery/ ordering-reordering costs in raising/ lowering
  • Customer service level/ action can affect what a customer orders/ how much to order/ how to order/ how often to order

Example- a smart and effective customer service from a company like Amazon, can influence:

  • how many times a customer can order online per day/ week/ month/ year- like frequency of ordering clothes
  • how much money can he/she spend per order- like premium priced clothes + moderate sport shoes + luxury watch
  • how many number or variety of product can he/she order online- like mobile phone+ screen front cover + back cover + headphones

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