Question 1

Explain how order management and customer service are related.

Accepted Answer

How an organization receives an order (electronically versus manually), how it fills an order (inventory policy and number and location of warehouses), and how it ships an order (mode choice and its impacts on delivery times) are all dictated by how an organization manages an order.
Customer service, on the other hand, is anything that touches the customer. This includes all activities that impact information flow, product flow, and cash flow between the organization and its customers. Customer service can be described as a philosophy, as performance measures, or as an activity. Customer service as a philosophy elevates customer service to an organization-wide commitment to providing customer satisfaction through superior customer service. This view of customer service is entirely consistent with many organizations' emphasis on value management, elevates it to the strategic level within an organization, and makes it visible to top executives.
Most organizations employ all three definitions of customer service in their order management process. Figure 8-1  (in the text)?shows one way in which order management and customer service are related. As this figure shows, customer service is involved in both influencing a customer's order as well as in executing the customer's order. The topics in this figure will be discussed in more detail in this chapter.

Question 2

Customer service is often viewed as the primary interface between logistics and marketing. Discuss the nature of this interface and how it might be changing.

Accepted Answer

Customer service is often the key link between logistics and marketing within an organization. If the logistics system, particularly outbound logistics, is not functioning properly and a customer does not receive a delivery as promised, the organization could lose both current and future revenue. Manufacturing can produce a quality product at the right cost and marketing can sell it, but if logistics does not deliver it when and where promised, the customer will not be satisfied.
The traditional role of customer service is at the interface between marketing and logistics. This relationship manifests itself in this perspective through the "place" dimension of the marketing mix, which is often used synonymously with channel-of-distribution decisions and the associated customer service levels provided. In this context, logistics plays a static role that is based upon minimizing the total cost of the various logistics activities within a given set of service levels, most likely determined by marketing.
However, logistics today is taking on a more dynamic role in influencing customer service levels as well as in impacting an organization's financial position. Again, appropriate examples here would include both Dell and Walmart that have both used logistics and customer service to reduce product prices, increase product availability, and reduce lead times to customers. These two organizations have gained an appreciation for the impact of dynamic logistics systems on their financial positions.

Question 3

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.

Accepted Answer

A) True 
 B)False  True

Question 4

What are the steps in the CRM process?

Accepted Answer

A)  Segment customer base, then measure service, and improve 
B)  Segment customer base, then identify service/package 
C)  Measure service, then improve 
D)  Segment customer base, identify service/package, then measure service, and improve 
A)  Segment customer base, then measure service, and improve 
B)  Segment customer base, then identify service/package 
C)  Measure service, then improve 
D)  Segment customer base, identify service/package, then measure service, and improve

Question 5

Activity-based costing works well in warehouse-type environments but does not work for customer service applications.

Accepted Answer

A) True 
 B)False

Question 6

Define and discuss the Marketing/Logistics interface.

Accepted Answer

Customer service is often the key link b

Question 7

Activity Based Costing:

Accepted Answer

A)  is useful for distributions centers but not customers. 
B)  can be combined with customer segmentation. 
C)  is too sophisticated for many applications. 
D)  is a very new management science. 
A)  is useful for distributions centers but not customers. 
B)  can be combined with customer segmentation. 
C)  is too sophisticated for many applications. 
D)  is a very new management science.

Question 8

Explain the impacts of order cycle time length and variability on both buyers and sellers.

Accepted Answer

While interest has traditionally focused

Question 9

There are two parts to the order management process. The first is _____ and the second is _____.

Accepted Answer

A)  managing the order after it is received; influencing how the customer orders 
B)  shipping the order; taking the order 
C)  influencing how the customer orders; managing the order after it is received 
D)  the Internet model; the traditional model 
A)  managing the order after it is received; influencing how the customer orders 
B)  shipping the order; taking the order 
C)  influencing how the customer orders; managing the order after it is received 
D)  the Internet model; the traditional model

Question 10

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability.

Accepted Answer

A) True 
 B)False

Question 11

"Order to cash" and "order cycle" are the same.

Accepted Answer

A) True 
 B)False

Question 12

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.

Accepted Answer

A) True 
 B)False

Question 13

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.

Accepted Answer

A) True 
 B)False

Question 14

Customer service is anything that touches the customer.

Accepted Answer

A) True 
 B)False

Question 15

Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold.

Accepted Answer

A)  gross sales 
B)  back orders 
C)  the forecast 
D)  gross margin 
A)  gross sales 
B)  back orders 
C)  the forecast 
D)  gross margin

Question 16

Those customers who are in the "Danger Zone" segment are:

Accepted Answer

A)  likely to switch to a competitor. 
B)  have been a customer for less than a year. 
C)  the least profitable. 
D)  are using ABC to drive down the price. 
A)  likely to switch to a competitor. 
B)  have been a customer for less than a year. 
C)  the least profitable. 
D)  are using ABC to drive down the price.

Question 17

Order management system represents the principal means by which:

Accepted Answer

A)  price and lead time add value. 
B)  buyers and sellers communicate information relating to individual orders of product. 
C)  orders are handled inside the company. 
D)  customers are segmented by profitability. 
A)  price and lead time add value. 
B)  buyers and sellers communicate information relating to individual orders of product. 
C)  orders are handled inside the company. 
D)  customers are segmented by profitability.

Question 18

Which is NOT part of dependability?

Accepted Answer

A)  Cycle time 
B)  Safe delivery 
C)  Correct orders 
D)  Consistent pricing 
A)  Cycle time 
B)  Safe delivery 
C)  Correct orders 
D)  Consistent pricing

Question 19

As the level of substitutability for a product increases, its stockout costs to the manufacturer:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  stay the same. 
D)  can't be determined. 
A)  increase. 
B)  decrease. 
C)  stay the same. 
D)  can't be determined.

Question 20

Customer relationship management is a new concept only recently receiving attention.

Accepted Answer

A) True 
 B)False

Explain how order management and customer service are related.

Customer service is often viewed as the primary interface between logistics and marketing. Discuss the nature of this interface and how it might be changing.

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.

What are the steps in the CRM process?

Activity-based costing works well in warehouse-type environments but does not work for customer service applications.

Define and discuss the Marketing/Logistics interface.

Activity Based Costing:

Explain the impacts of order cycle time length and variability on both buyers and sellers.

There are two parts to the order management process. The first is _ and the second is _.

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability.

"Order to cash" and "order cycle" are the same.

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.

Customer service is anything that touches the customer.

Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold.

Those customers who are in the "Danger Zone" segment are:

Order management system represents the principal means by which:

Which is NOT part of dependability?

As the level of substitutability for a product increases, its stockout costs to the manufacturer:

Customer relationship management is a new concept only recently receiving attention.

Supply Chain Management: an Overview

Global Dimensions of Supply Chains

Role of Logistics in Supply Chains

Distribution and Omni Channel Network Design

Sourcing Materials and Services

Operations Producing Goods and Services

Demand Management

Managing Inventory in the Supply Chain

Distribution

Transportation

Aligning Supply Chains

Supply Chain Performance Measurement and Financial Analysis

Supply Chain Technology

Strategic Challenges and Change for Supply Chains

Filters

Exam 8: Order Management and Customer Service

Explain how order management and customer service are related.

Customer service is often viewed as the primary interface between logistics and marketing. Discuss the nature of this interface and how it might be changing.

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.

What are the steps in the CRM process?

Activity-based costing works well in warehouse-type environments but does not work for customer service applications.

Define and discuss the Marketing/Logistics interface.

Activity Based Costing:

Explain the impacts of order cycle time length and variability on both buyers and sellers.

There are two parts to the order management process. The first is _____ and the second is _____.

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability.

"Order to cash" and "order cycle" are the same.

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.

Customer service is anything that touches the customer.

Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold.

Those customers who are in the "Danger Zone" segment are:

Order management system represents the principal means by which:

Which is NOT part of dependability?

As the level of substitutability for a product increases, its stockout costs to the manufacturer:

Customer relationship management is a new concept only recently receiving attention.

Supply Chain Management: an Overview

Global Dimensions of Supply Chains

Role of Logistics in Supply Chains

Distribution and Omni Channel Network Design

Sourcing Materials and Services

Operations Producing Goods and Services

Demand Management

Managing Inventory in the Supply Chain

Distribution

Transportation

Aligning Supply Chains

Supply Chain Performance Measurement and Financial Analysis

Supply Chain Technology

Strategic Challenges and Change for Supply Chains

Filters

There are two parts to the order management process. The first is _ and the second is _.