Kirk Kazanjian, Martin Christopher as Examples of Superior Customer Service Delivered by Companies - Case Study Example

Supply Chain Management and Logistics Supply chain management is the management of a network of interconnected businesses which are engaged in the definitive provision of goods and services required by end customers (Mentzer 2001). This spans all movement and storage of materials to be used in making the end products, work-in-process inventory, and the finals goods from point-of-origin to point-of-consumption which is now called supply chain. Supply Chain Management was defined by an American Professional Association as a process which incorporates the planning and management of all activities encompassed in sourcing, procurement, conversion, and lastly, of logistics management activities (Mentzer 2001). It also includes the coordination and collaboration with channel partners. Most importantly, it integrates supply and demand management within and across companies. Supply chain management usually refers to a cross-functional approach in managing the progress of raw materials into a company, some specific aspects of the core processing of materials into end products, and then the progress of these end products out of the company towards the end consumer (Simchi 2007). As the company aims to focus on internal competencies and becoming supplier, the company reduces their ownership of raw materials and channels for distribution. These original functions of the supply chain management have been increasingly outsourced to outside entities which can perform these tasks more efficiently. The effect is to escalate the demand simultaneously reducing management control of daily logistics operations. Less hold and increasing number of chain partners led to the making of supply chain management concepts. The goal then of supply chain management is to target the improvement of trust and collaboration among the supply chain partners, which then improves inventory visibility and the improvement of inventory velocity. Business Process A change from managing individual functions to integrating activities into key supply chain processes is the vital change that is required for supply change management to be successful. An example scenario of which is if the purchasing department of a company puts orders priorities (Hoffman 2006). This demand can be satisfied through marketing, responding to customer demand, open communication with several distributors and retailers. The shared information among supply chain partners can only be controlled through the process of integration. The combining of supply chain business process incorporates the mutual work between buyers and suppliers, concerted product improvement, common systems and shared information (Simchi 2007). The success of the operation of an integrated supply chain is in need of a continuous information flow. But then, in many companies, management has attained the concluding statement that optimizing the product flows cannot be accomplished without putting into practice a process approach to business. One of the most important processes that will support the success of a company is customer service management and customer relationship management which are basically related. Customer relationship management is focused on the relationship between a company or a certain organization and its customers. It provides the customers with real time information on dates and on the availability of products through interfaces, both with the company’s production and distribution department’s operation. Some of the key steps in building customer relationships which will lead to a successful chain management include the determination of mutually satisfying aims between the customers and the company. Second is the establishment and maintenance of customer rapport. Third is the production of positive feelings in the company and the customers (Hoffman 2006). The most important goal of supply chain management is to guarantee end-consumer satisfaction which can be done through an effective customer service management. Companies and corporations are now increasingly realizing that they can stand out from the competition on the basis of receptiveness, accuracy, ease of interaction and comparable attributes which is popularly termed as customer service (Mentzer, 2001). Customer service is defined as activities which are aimed at enhancing the goods offered or making possible the exchange process between the customer or the end-user and the company. A superior customer service is the lifeblood of any existing business. One can offer promotions and decrease product prices to bring in as many customers that a company wants, but not unless a company can get some of those customers to go back, the business profit would not be feasible for long (Mentzer 2001). Superior customer service for the lay man is all about persuading and bringing customers back. And on top of that, it’s about sending them away satisfied and happy-satisfied and happy enough to pass on a positive feedback about one’s business to others who in turn may try the product that the company is offering and in turn do the same (Turban 2002). If a company is as good as they think they are, it is their approach to customer service that determines whether or not you will be able to sell a product to that customer again. The importance of customer service is forming a good relationship with customers where the customers are willing to pursue. Customer service is also a central concern in the logistics practice and a study topic in the forward logistics research. Since consumer is the first intervenient in any reverse system that aspires to reprocess company residues, the stipulation of a sufficient customer service gains a greater than before importance (Turban 2002). Nowadays, the global marketplace is becoming more and more competitive and that the pressure on organizations to innovate ways to make and deliver value to customers grows even stronger. There is an escalating realization that it is through efficient and effective management of logistics and the supply chain that both the goals in cost reduction and service enhancement can be attained. Examples of Superior Customer Service Delivered by Companies Feargal Quinn founded a supermarket chain 40 years ago in Dublin and up to now the business is still flourishing and he also attained the title “Pope of Customer Service”. He once commented that if one should be given a chance to be born again, that someone should do his best to be born into a family who runs a holiday camp. He said that it is a smashing way to grow up and at the same time educates one about business. That is how this Quinn grew up. Most of his school breaks were spent on the Red Island holiday camp owned by his father outside Skerries on the coast of northern County Dublin. He worked as a waiter, page boy, bingo caller and anything or anyone the day called for. He gathered insights and experiences which formed the core of a leadership (Labarre 2001). He said that the only way that they could judge their business is if the guests come to his father and say that they had a great holiday and that they will be booking in their resort again for the next holiday (Labarre 2001). That their central goal is to get people to come back. He advised that when faced by a business decision, the one question one business man should ask to himself is what that decision does to help customers to go back. His untiring and inventive exploration of that question has earned him a status as Ireland’s pope of customer service. He opened his first chop in 1960 in the sides of Dundalk when he was just 23. As of now, he is the owner and chairman of a 5,600-person, 19-store chain of supermarkets which have a $700 million estimated sales. Although it is tiny compared to its competitor, the Tesco, a British Chain, its ambition is still remarkable. In a market environment which is increasingly becoming complicated about connecting with customers, the most basic way is sometimes the most helpful. Listening, for Quinn, plays that role. He said that genuine listening ability is one of the few authentic forms of competitive advantage. This technique includes regular customer panels, customer-comment forms at most directly seen space in each grocery store, a service desk at every entrance of each stores and a formal market research. One of the concerns with a big company is that the bigger it gets, the less attention or at least contact that one will have on his customers, who are the most important people who helped these successful businesses get to where they are now. The time spent with them is unlike the time oen has when the business was just starting. There are more pressing matters that one’s attention should focus on (Brodsky 2004). One author shared his experience with JetBlue on his flight to New York. He picked JetBlue aside from the fact that it’s cheaper than its competitors is the way they make customers comfortable and that they do not overcharge, and when a customer calls the service representatives are sincerely trying to help. They make their customers flight easy, simple and painless. And when the author was already comfortable in his seat, he was surprised to see a middle aged man wearing an apron the stewardess wear and a name tag saying “Hi, My name is Dave Neeleman”. And he further said on the microphone that he is the CEO of JetBlue and that he is there to serve them and to meet each one of them before the plane lands to Oakland (Brodsky 2004). Obviously, the passengers were all impressed. He even shared to the passengers that he gets most of his ideas in managing costumer service in flights like that one. Martin Christopher Martin Christopher is currently a professor at Cranfield School of Management specializing in Marketing and Logistics (Fenn, 2001). His contributions in the area of logistics and supply chain management have achieved worldwide recognition. His recent works include Logistics and Supply Chain Management and Marketing Logistics. The International Journal of Logistics Management is also one of the journals he co-author and Christopher is a regular contributor to seminars and workshops around the globe. He chairs the Centre for Logistics and Supply Chain Management at Cranfield which is known as the largest activity of its type in Europe. On top of the leading number of on-going research projects and supply chain management, Christopher is also an active advisor to many organisations and is non-executive director of a number of corporations. The Sir Robert Lawrence Gold Medal was awarded to him in 1988 for his substantial contribution to logistics education and the USA Council of Logistics Management Foundation Award was also given to him in 1997 (Fenn 2001). His book, Logistics and Supply Chain Management incorporates diagrams, case studies and chapter summaries and looks at the instruments, core processes and initiatives to make certain that businesses achieve and maintain their competitive advantage. One of the topics tackled by Christopher in his book is the idea of a service-driven logistics system which is based on identified service priorities and customer base segmented based on service prerequisites. He also touched on the many ways wherein logistics can affect an overall return on investments and in due course, shareholder value. He concluded that the receptiveness, dependability and relationships built on strong foundations are the basis for successful logistics and supply chain management. Kirk Kazanjian One of the most stirring and respected voice on the most contemporary trends in customer service, marketing, employee retention, management, and successful business practices in these days’ fast-changing and competitive world is that of Kirk Kazanjian. Kazanjian is a bestselling author of more than a dozen books; he is a lifelong entrepreneur who started in running several companies which were all successful. Kazanjian is also a worldwide distinguished expert on the financial markets and has served in different executive roles within the investment industry. Kazanjian is currently the President and Editorial Director of a most important financial communications and publishing development company and has written and developed many books which explores the best practices of such leading companies as Enterprise Rent-A-Car, Build-A-Bear workshop, Jetblue, Krispy Kreme, Avon Products and Trader’s Joe. The latest book he developed, Exceeding Costumer Expectations, includes a tested formula for making amazingly happy costumers, forming significant partnerships, developing an empowered labour force, escalating employee retention, and constructing a company beyond one’s wildest dream (Fenn 2001). The book he wrote was based on the principles of Enterprise Rent-A-Car, which incorporated strategies outlined also in that book helping it become the number one rental car company in North America. His book, Exceeding Costumer Expectations has obtained high praises from some of the globe’s top business leaders, which includes Warren Buffett, the American Express CEO Ken Chenault, and Ann Mulcahy, the Xerox CEO who stated that she loved the book and that she learned a lot from it as well. Moreover, she thought it was an important reading for every business manager and a very good example that if one makes value for one’s costumers, the business one is managing, the business will flourish and all the stakeholders will benefit. Kazanjian is also an admired speaker and consultant on topics such as bringing excellent customer service, strategies for empowering and retaining workers, supercharging your marketing and branding efforts, and crafting one’s company to stand out from the competition. References Brodsky, N. 2004. Street Smarts: Learning From JetBlue. http://customerservicezone.com/cgi-bin/links/jump.cgi?ID=856 Fenn, D. 2001. Best Five Businesses: Common Threads. http://customerservicezone.com/cgi-bin/links/jump.cgi?ID=861 Hoffman, F. 2006. Industry Spotlight: Logistics and Supply Chain Management. http://career-advice.monster.com/job-industry-profiles/technology/Industry-Spotlight-Logistics-and-Su/home.aspx Labarre, P. 2001. The Pope of Customer Service. http://www.fastcompany.com/magazine/52/quinn.html Mentzer, J.T. et al (2001): Defining Supply Chain Management, in: Journal of Business Logistics, Vol. 22, No. 2, 2001, pp. 1-25 Simchi D. (2007). Designing and Managing the Supply Chain, third edition .McGraw Hill Turban, E.(2002), Electronic Commerce: A Managerial Perspective, Prentice Hall Read More