Chapter 9 Definition Flashcards
Customer service management
The design and execution of the processes that provide customers with products and services they desire
Basic service
A suppliers ability to provide product availability, lead time performance and service reliability
Product availability
The capacity to have inventory present when and where it is desires by a customer
Stockouts
The situation when a firm has depleted inventory of an item that is supposed to be in stock
Fill rate
A measure of the impact of stockouts over time or over multiple orders
Line fill rate
A measure of service performance as the percentage of purchase order lines that are filled in total
Order fill rate (orders shipped complete)
A measure of the percentage of orders that are shipped complete with all items ordered by a customer
Lead time
The amount of time that passes between the beginning and ending of a set of activities
Order to delivery (OTD) lead time
The time that passes from the instant the customer places an order until the instant the customer receives the product
Service reliability
A firms ability to perform all order-related activities error-free. It also encompasses a firms ability to provide customers with critical information regarding inventory and order status
Perfect order
The notion that an order should be delivered without failure in any attribute
Customer satisfaction
Meeting or exceeding customer expectations
Amazon effect
The impact exerted on both customers and competitors by Amazon, due to its on-going emphasis of developing and continuously refining ( and quickly implementing ) new ways of connecting customers with solutions
Knowledge gap
The gap between customers real expectations and managers perceptions of those expectations
Standards gap
The gap that exists when internal performance standards do not adequately or accurately reflect customer expectations
