Order Management and Customer Service - Essay Example

Logistics Management Name Institution Date Table of Contents Table of Contents 2 Executive Summary 3 Order management and customer service 4 Australian distribution centre packaging and materials handling. 9 Physical distribution within Australia 11 Conclusion 13 References 14 Executive Summary Concepts of logistic management are very vital when operating a business entity. The concepts discussed in the paper are mainly for the purpose of streamlining the operations of a business organization. They are also applicable in an e-commerce company that is to be set up in Australia. Order management and customer service are among the most important concepts of logistics management. The paper discusses the process involved in the order management and customer services. These concepts have also been applied in the operations of the new company. The distribution and handling of materials in Austria have also been discussed in details and it involves the methods of packaging and handling goods. These methods discussed are applicable to the company and it ensures the safety of the goods at the distribution center. Physical distribution of goods within Australia is also an important concept for the company. The method of distributing the goods which mainly involves transportation has been discussed in details in the paper. The paper also concludes that the logistic concepts will be very important during the operations of the company and should be adopted. Introduction Logistic management is an important tool for the operations of any business. It mainly involves the coordination of activities from the points of ordering goods to the supply to customers. This process requires a lot of attention in order to avoid purchasing excess goods or making losses during the operations of the business (Halldorsson, 2004). Logistics has become increasingly important to business owners due to the reduction in economic regulations which has led to increased competition. The technological advancement also has impacts on the logistics and it may determine how the business is managed. In order to move at pace with technology, it is important to have the concepts of logistics management. According to Ketchen (2006), software is also used during the management of logistics for the purpose of making the process easy. The issues of transportation of goods and warehousing are also important concepts in logistic management. The rate at which operations are conducted in a business organization also affects consumer behaviors. It is thus important to have the concepts of logistics management for the purpose of satisfying the customers. The paper thus discusses the concepts of logistics management in relation to an on-line firm that is about to be set up in Australia. Order management and customer service Order management process is the period between ordering of goods and the notification of the warehouse to deliver the goods (Ketchen, 2006). The period may take some amount of time depending on the nature of the goods and the urgency. The company may use various methods to transmit the order. The method used depends on the urgency and the reliability. Since the company is mainly about e-commerce, it is important for it to use electronic methods of transmitting the order. This method is cheap, fast and very reliable when communicating with the supplier. Due to the advancement in technology, most of the companies are using the electronic means and it has thus become very common. However in other instances and depending with the nature and urgency of the goods, a company may send it representative directly to the supplier. The other methods that may be used by the company may include telephone calls, fax or mail. All these methods are common with most of the companies and hence reliable. Order processing is also an important concept of order management. It mainly involves the verification of the details in the order by the seller before delivering the goods (Movahedi, 2009). The accuracy and the location of the nearest warehouse are usually determined during the process. Depending on the method used, the accuracy of the order is important. This is because errors may lead to wrong delivery and thus affecting the customers waiting for the goods. The company should thus ensure that the levels of accuracy are very high so as to speed up the process. During this process, the company will also be advised on the appropriate location to pick the goods. The transportation is also arranged during the process and thus making the delivery easier for the company. It is important for the company to carry out the order electronically so as to speed up the processing of the order. It is also easy to correct errors when the electronic means are used. Order picking and assembly is a useful concept of order management. This process mainly involves authorization of an order and loading of the goods in a carrier. This is usually done after the order has been approved. This process is the most critical process of order management and it may be very costly depending on how it is handled. The management of the company should follow this process carefully as it may be used to make improvements during the future orders. The methods used during transportation also determine the time taken for the goods to reach the warehouse of the company. It is thus important for the company to choose the most appropriate method depending on the urgency of the goods. Various methods are used fort the order picking and assembly process and the company should use the most efficient method. The methods used includes, use of handheld scanners, radio frequency identification, voice based order picking and pick to light. These methods are mainly efficient as they utilize the modern technology. Customer service is also very important for the growth and development of any business. This is because the business mainly relies on the customers for it to operate. It also involves the ability of the logistic management to satisfy the customers by fulfilling all their needs and meeting their requirements (Mikkola, 2007). The most important concepts of customer service includes, time, dependability, communication and convenience. The time take to fulfill the needs and requirements of a customer should be put into consideration by the management of the company. Since the company is involved in e-commerce, it is important for it to ensure that the customers are served within the shortest time possible. The company must also ensure that it is reliable for the customers to depend on it. This is important as retaining the customers will be beneficial to the company. Good communication should also be maintained so as to address the needs of the customers appropriately. The delivery of goods should also be convenient to the customers. This will play an important role in improving the prospects for the company. Various customer service considerations are important in terms of making the services better. This includes the analysis of customer profitability. This process involves calculating the profitability of the customers and their contributions towards the growth of the business (Mentzer, 2001). During the analysis, it is important to put into consideration that different customers always consume different resources. This is important to the company as it will be dealing with a wide range of goods. It is also important to consider that some customers are more valuable than others. This depends on the contributions that the customers make towards the growth and development of the company. The most valuable customers should be identified and measures put in place to retain them. The customer profitability analysis is important in terms of determining the approach to use when dealing with different customers. This concepts will be important for the company in terms of coming up with the most suitable methods of treating and satisfying the customers. Establishment of the customer service objectives is very important in terms of service improvement. Establishment of the customer service objectives is used to identify any weaknesses and thus proposing an efficient solution (Ayers, 2000). The objectives of the customer service must be specific, measurable, achievable and cost effective. These concepts are important to a business organization in terms of coming up with the most appropriate customer service objectives. The company must therefore develop specific objectives that it has to fulfill during its operations. However it is important for the company to develop objectives aimed at providing quality services and customer satisfaction. The objectives should also be measurable; this can be done using the customer satisfaction surveys to determine the effectiveness of the customer objectives. The objectives should also be achievable, this can be done through coming up with reasonable objectives and allocation of resources for the purpose of attaining the objectives. The process of establishing the customer objectives must also be cost effective in order to avoid misuse of funds. Measuring of the customer service objectives is an important tool for the management of customer service. This process may require time and resources for it to be successful. Measuring the customer service objectives ensures that the business operates in line with its goals and objectives (Wallenburg, 2011). Measuring the customers’ service objectives is also important for the management of the company as it gives information regarding the satisfaction of the customers. It is important to use appropriate data during the process so as to obtain the correct information. The factors to be measured should also be determined for the purpose of simplifying the process. It is also important for the business organization to resist excessive measurement as it leads to poor decision making and errors. The company should thus conduct customer satisfaction survey for the purpose of measuring the performance of the objectives. This should be done by qualified personnel from the company. The results of the measurement should be used by the company to establish new objectives or make improvements to the existing objectives. During certain instances, the services offered by a company may fail to meet the objectives of the customers (Novack, 2009). This problem is usually referred to as service fail. This occurrence may be due to some unavoidable or avoidable reasons. The impact of service failure has a negative effect on the customer service management. Service failure may occur due to late deliveries, wrong deliveries, lost deliveries or incorrect deliveries. Service failure recovery is thus important for the purpose of satisfying the customers after the problem. This process is important as it wins the loyalty of the customers as well as protecting the image of the company. The company should thus ensure that it notes any service failure that occurs. This problem may be common due to the nature of products the company will be handling. Service failure recovery should thus be carried out immediately so as to avoid losing the customers. The management of the company should pay special attention to this problem so as to improve customer service management process. Australian distribution centre packaging and materials handling. Facility location is an important concept of distribution. It plays an important part in choosing the most suitable location for a warehouse. In Australia, facility location plays an important in ensuring the goods are accessible to the customers and the warehouse can be easily accessed by the suppliers. Various factors are important when choosing a location for a warehouse in Australia. The factors to be considered include, the cost considerations, the location of the customers and suppliers and the customer expectations (Ellram, 1998). These factors also act as a guide for deciding the size of the facility and its conditions. Since the company intends to locate its distribution center in Australia, then it should put the factors into considerations. The location of the distribution center should be accessible and near the customers. This will ensure that the company saves the cost of distribution and also transportation. The management should also adhere to the laid down regulations of the government before setting up the distribution center. The number of facilities is also important when determining the location of the facility (Lacefield, 2005). This is however guided by the number of customers in the region. E-commerce is very popular in Australia and therefore important to have enough facilities. Software may be used in determining the correct number of facilities so as to avoid inconveniencing the customers. Incase the facility becomes inappropriate for the customers, then relocation may be done. This involves moving the facility to a different area or region. Facility relocation is also important in terms of improving the supply chain and hence better management of the company. The management of the company should come up with the data on the consumption of goods it intends to sell. This data can then be used for the purpose of determining the number of facilities. The option of relocation should also be considered by the company incase of low customer volumes or poor distribution chain. Proper planning is important for the company to avoid high operation costs. Packaging mainly refers to the materials used in the containment of goods. This is mainly for the purpose of protecting the goods and promoting safety when handling them (Rudelius, 2009). In Australia, the laws and regulations guiding packaging are very strict. This is mainly for the purpose of protecting the environment and easy handling of goods. Packaging is very important in terms of protecting the goods from undesired contact. The goods also become tamper proof when they are packaged and hence ensuring that it reaches the consumer in good quality. Packaging will play an important role in the company in terms of handling the goods. This is because the company will be handling very sensitive goods. The company should first comply with the requirements of the Australian government regarding the packaging of goods. This will ensure that the company does not face any legal problems. The protection of the environment should be a priority for the company during the process. It is also important for the company to label its goods so as to ensure it reaches the correct customer. This is also an important requirement by the government and should be fully adopted. Handling of materials mainly involves moving the materials within a short distance. This may involve the movement of the materials inside the warehouse (Blanchard, 2010). This process is very critical and it depends on the packaging. Poor handling of materials may affect the quality of the material and hence losses for the company. The material handling equipment depends on the bulkiness of the goods. Machines are also used when handling heavy and bulky goods within the warehouse. This process may be quite tiresome when it is carried out manually. It is also important to ensure that proper planning is done before initiating the process so as to come up with the most appropriate method. Due to the nature of the products the company will be dealing with, material handling will be very common and part of day to day activity. This process should be well planed so as to avoid any chances of affecting the quality of the products. The company should also ensure that it records the number of goods that are damaged during the process. This is mainly for the purpose of ensuring the damaged products do not reach the customers. Physical distribution within Australia The Australian laws are very strict regarding the importation of goods. Before the goods are distributed to the customers, they must be inspected to ensure that they are genuine. A document of clearance is thus required when the goods are imported. Failure to follow he procedure leads to prosecution by the relevant authorities. The inspection process may involve physical inspection and unpacking the goods. Once the goods have been cleared, they can be distributed to the customers. The company should ensure that its goods are of good quality so as to pass the inspection procedure. This will ensure that the company does not suffer any losses. If the goods are of poor quality, they are usually destroyed which is a loss to a company. The documents are also important during the distribution as it proves that the goods are certified. It is important for the company to comply with all the legal requirements before distributing the goods. Physical distribution of goods in Australia mainly involves transportation. This is usually considered as the most costly process in the logistic management. The main factor that affects the transportation process includes the weight, the product and the distance (Simchi-levi, 2007). The pricing of the transportation is also affected by the distance and the weight of the products. Various methods are used for the purpose of determining the cost of transportation. It is thus important for a business organization to choose the most suitable method so as to save costs. The company will definitely require transportation services when physically distributing the goods. This is because the products the company will be dealing with require transportation from the warehouse to the clients. Some of the goods that the company will be handling are quite heavy and bulky. This may be very costly for the company. It is thus important for the company to make good plans for the physical distribution process. The selection of a transportation service provider is important to an organization. This is because a poor transportation company may inconvenience the clients and the delivery may be low (Novack, 2006). The quality of vehicles used by the transportation company may affect the physical distribution of goods. The reputation of the company should also be considered as some companies have rogue drivers who may fail to deliver the goods on time. The pricing is also an important consideration before contracting the transportation company. In Australia, a standard board is responsible for determining the commodity freight classification which is useful in determining the pricing. It is therefore important for the company to put into consideration the factors that may affect the physical distribution of goods. The right company should be contracted based on its reputation. Government policies regarding the distribution of goods should also be observed at all times by the company. The managers should also ensure that the pricing is safe so as to save costs for the company. Conclusion In conclusion, the logistic management concepts are very important for the operations of the company. The concepts are mainly for the purpose of stream lining the operations of the organization. Order management and customer service is very important for the operations of the company. The order management is useful in terms of ensuring that the order is accurate. This reduces the chances of errors which inconveniences the company. It is also important for the company to follow the right procedure when ordering goods so as to avoid inconveniencing the customers. The customer service is also important in terms of maintaining and satisfying the customers. Proper customer service objectives are important for the company and the concepts should be adopted. It is also important for the company to maintain good relationship with the customers so as to boost the prospects of the company. The company must also observe all the rules and regulations of the Australian government regarding the operations of the business. This will ensure that the company does not suffer from any penalties due to violation of laws. The company must also use the most appropriate methods of packaging the goods to ensure that it reaches the customers in good quality. It is evident that the methods of handling the goods also has effects on it quality. The most appropriate methods should be used by the company to avoid losses. The Australian laws regarding the physical distribution of goods should be observed by the company. It is also important for the company to hire the services of a good transporter so as to make the distribution easier. References Assessment and Success Factors. The International Journal of Technology, Knowledge and Society, Volume 5, Issue 3, pp. 75–88. Ayers, J. (2000). Handbook of Supply Chain Management, Saint Lucie Press. Blanchard, D. (2010), Supply Chain Management Best Practices, 2nd. Edition, John Wiley & Sons. Ellram, M. (1998). Fundamentals of Logistics Management. New York: Irwin McGraw-Hill. Halldorsson, A. (2004). Logistics versus supply chain management: an international survey. International Journal of Logistics: Research & Application, Vol. 7, Issue 1, 17-31 Ketchen, G. et al (2006). Bridging organization theory and supply chain management: The case of best value supply chains. Journal of Operations Management, 25(2) 573-580. Lacefield, S. (2005) Ten Tips for Faster Picking, Logistics Management. 71-76. Mentzer, T. et. al. (2001). Defining Supply Chain Management. Journal of Business Logistics, Vol. 22, No. 2, 2001, pp. 1–25 Mikkola, J. et al (2007). Complementary theories to supply chain management. Supply Chain Management: An International Journal, Volume 12 Issue 4, 284-296 Movahedi, B. et al (2009) Transition to B2B e-Marketplace Enabled Supply Chain: Readiness Novack, R. (2006).Transportation, 6th ed. Mason, OH: South-Western, Rudelius, W. et al (2009). Marketing, 9th ed. Boston, MA: McGraw-Hill/Irwin Simchi-levi, Novack, E. et al (2009). Supply Chain Management: A Logistics Perspective, 8th Ed. Mason, OH: South-Western Cengage Learning, Appendix 11-A. Wallenburg, C. et al. (2011): Commitment and Trust as Drivers of Loyalty in Logistics Outsourcing Relationships: Cultural Differences Between the United States and Germany. Journal of Business Logistics, Vol. 32, No. 1, pp. 83-98 Read More