Untitled - CII Institute of Logistics

CHAPTER - 2
FUNDAMENTALS OF LOGISTICS
LOGISTICS AND CUSTOMER SERVICE
Customers are the focus of any activity. The primary reason behind this being that, ultimately every
product, service or idea finally needs to cater to the customer’s requirements.
According to Lalonde Bernard J, “Customer service as a complex of activities involving all areas of the
business which combine to delver and invoice the companies product in a fashion that is perceived as
satisfactory by the customer and which advances the companies objective”. Customer service, as a
concept has many aspects to it. Logistics management has a major role in enhancing the customer
satisfaction and also retention and thus creating a lifetime customer value.
In other words, customer service as a combination of activities enables a business firm to add more
value to the buyer. It is a key element of the product or service, which is offered to the customer. With
good customer service, the existing customers are satisfied and this attracts new customers through
word-of-mouth communication. Customer Service is not just a function or an activity. It is a philosophy,
and attitude. With so much importance given to customer service, companies are trying to increase the
level of customer service and scale up to the expectations of the customer. Unless the products are in
the hands of the customer at the time and place of requirement, products do not have any value
attached to them. To attain a commendable service level, the firm has to plan a closely integrated
logistics strategy.
In today’s market, customers are so much demanding, not only in the quality aspect but also with
regard to the service aspect. Customers form a few perceptions in relation to the various aspects of
customer service like reliability, competency, responsiveness, trustworthiness etc. With the help of
these cues, customers evaluate the firm’s services and conclude whether they are satisfied or not.
Physical distribution plays a major role in delivering customer service.
As there is an increase in the competition, and there is advancement in technology, companies today
are faced with the mounting pressure to develop even more innovative strategies for customer service.
Two key factors that have contributed maximum for the growing importance of customer service as a
competitive weapon are the continuous development of customer expectations and the gradual shift of
CII INSTITUTE OF LOGISTICS 6
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