Customer Service Operations & Excellence . 2 case studies. 12-16 slides - PowerPoint Presentation Example

As opposed to a traditional bricks and mortar grocery store that allows customers access to the shop where they can select the product themselves, online operation requires customers to possess a credit card or other electronic means of payment along with access to a computer (Kornum & Bjerre, 2005). Online grocery retailers also suffer from higher operating costs than brick-and-mortar stores (Ring & Tigert, 2001). The online system can sometimes prove to be slow leading to slow response times (Morganosky & Cude, 2002).

Whereas the value chain of online shops comprises of a retailer- customer value chain, traditional bricks and mortar operations usually require intermediaries such as warehousing companies (Spar & Bussgang, 1996). This results in a wholesaler-retailer-customer chain. 2. The supporting activities of the company’s service package pertain to its location on a main road near a college and the close proximity at which University Automotive is located. The facilitating products are the provision of a large coffee area as well as stereo music and good reading material offered for customers.

As far as the explicit offerings of Xpresso Lube are concerned, the company allows customers to view the problem being inspected by technicians as well as provides reasonably charged services. Finally, the implicit services of music bands and coffee area add to its service package. The distinctive characteristics are conveyed through the customized services offered to customers with the customer taking part in the inspection process along with the technician, the simultaneous provision of oil changing services as well as coffee house experience and no perishability of services offered as is expressed through vacant seats in the coffee house (Fitzsimmons & Fitzsimmons, 2008).

The company’s actions are aimed at the people along with their possessions. The company enjoys informal relationship with its customers (as they can participate in the inspection process), offers highly customized services and a fair degree of judgments by customer contracts. There is little volatility in demand and is easily met by Xpresso Lube. There is a single point of delivery where the customer may visit himself/herself to get the job done. The company’s location on a main street near to the college and the traffic it receives from University Automotive greatly contributes to its success.

Finally, value-added services that could be offered by Xpresso Lubes consist of the sale of automotive parts, home delivery and check-up facilities, free check-up for tire pressure as well as discounts to customers who come regularly. References Fitzsimmons, J. & Fitzsimmons, M., 2008. Service Management: operations, strategy, information technology. Boston: McGraw Hill. Kornum, N. & Bjerre, M., 2005. Grocery E-commerce: Consumer Behaviour and Business Strategies. Cheltenham: Edward Elgar Publishing Limited.

Krajewski, L.J., Ritzman, L.P. & Malhotra, M.K., 2013. Operations Management: Processes and Supply Chains. 10th ed. England: Pearson. Morganosky, M.A. & Cude,