SCM

UNIT 2
ELEMENTS OF CUSTOMER SERVICE
Customer service is a process for providing
competitive advantage and adding benefits to the
supply chain in order to maximise the total value to
the customer service.
According to the marketers there are 3 levels of
products are identified:
Core benefit / services: What the buyer is really buying
Tangible product: The product itself
Augmented products: includes benefits that are
secondary
Examples of Customer services
Revamping a billing procedure
Providing financial and credit terms
Guaranteeing delivery within specified time periods
Providing prompt and congenial sales representatives.
Extending the option to sell an consignment
Providing material to aid in customer’s sales
presentation
Installing the product
LEVELS OF CUSTOMER SERVICES
 Customer service as an activity
 Customer service as performance measures
 Customer service as a philosophy
Elements of Customer services
Time
Dependability
Communication
Convienience
Performance Measures for Customer
Service
Product Availability
Order cycle time
Distribution
Post sale product support
Difference Between Centralization and
Decentralization
Centralization and Decentralization are the two types of structures, that can be
found in the organization, government, management and even in purchasing.

 Centralization of authority means the power of planning and decision making are
exclusively in the hands of top management. It alludes to the concentration of all the
powers at the apex level.

On the other hand, Decentralization refers to the dissemination of powers by the

top management to the middle or low-level management. It is the delegation of
authority, at all the levels of management.
The unification of powers and authorities, in the hands of high-level management, is
known as Centralization. Decentralization means dispersal of powers and authorities
by the top level to the functional level management.
Centralization is the systematic and consistent concentration of authority at central
points. Unlike, decentralization is the systematic delegation of authority in an
organization.
Centralization is best for a small sized organization, but the large sized organization
should practice decentralization.
Formal communication exists in the centralized organization. Conversely, in
decentralization, communication stretches in all directions.
In centralization due to the concentration of powers in the hands of a single person, the
decision takes time. On the contrary, decentralization proves better regarding decision
making as the decisions are taken much closer to the actions.
There are full leadership and coordination in Centralization. Decentralization shares
the burden of the top level managers.
When the organization has inadequate control over the management, then
centralization is implemented, whereas when the organization has full control over its
management, decentralization is implemented.