Ans. (C) Customer service is the thread that links the logistics and marketing processes
because the end-product of the logistics system is customer service. The skill
lies in managing the twin arms of marketing and logistics in such a way as to -
maximize the value added through customer service while seeking a cost
advantage.
The
role of customer service is to provide time and place utilities in the transfer
of goods and services between buyer and seller. There is no value in a product
or service until it is in the hands of customer or consumer. It follows that
making the product or service available is what, in essence, the distribution
function of the business is all about. However, 'Availability' is in itself a
complex concept which is influenced by a galaxy of factors. These factors, for
example, include delivery frequency, reliability, stock levels and order cycle
time. Ultimately, customer service is determined by the interaction of all
those factors that affect the process of making products and services available
to the buyer.
Now-a-days,
customer service has changed its dimensions to quick and easy availability of
products with reduced inventory costs. Customers have started analyzing cost of
the product with lead time of suppliers and the inventory cost thereof. As
such, low volume purchase, but with larger frequency, is increasing. A customer
may ultimately buy a large quantity but at different intervals of time. Such
service is only possible through a good network of warehousing and appropriate
logistics management in fact, today logistics management not only ensures the
supply of product at lowest cost but also acts as a marketing tool for
increased sales.
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