Customer service and Outsourcing

Customer Service and

Outsourcing
Customer service outsourcing is the process of
moving some or all of your customer support
operations to a third-party specialist.
What is outsourcing?
Outsourcing is the business practice of hiring a
party outside a company to perform services or
create goods that were traditionally performed
in-house by the company's own employees and
staff.
Customer Service and Outsourcing
Why outsourcing?
 Customer Service and
Outsourcing
By outsourcing your customer service, you can cut
down costs on hiring, onboarding, training, quality
assurance, infrastructure, fixed salaries and benefits,
and save your business a lot of money.

These are some pros and cons of out sourcing:

 Customer Service and
Outsourcing
Advantages and disadvantages of outsourcing
Advantages of outsourcing:
1.Improved focus on core business activities
Outsourcing can free up your business to focus on its strengths, allowing
your staff to concentrate on their main tasks and on future strategy.
2.Increased efficiency
Choosing an outsourcing company that specialises in the process or
service you want them to carry out for you can help you achieve a more
productive, efficient service, often of greater quality.
3.Controlled costs
Cost savings achieved by outsourcing can help you release capital for
investment in other areas of your business.
 Customer Service and
Outsourcing
Advantages and disadvantages of outsourcing
Advantages of outsourcing:
4.Increased reach
Outsourcing can give you access to capabilities and facilities
otherwise not accessible or affordable.
5.Greater competitive advantage
Outsourcing can help you leverage knowledge and skills along with
your complete supply chain.
Outsourcing can also help to make your business more flexible and
agile, able to adapt to changing market conditions and challenges
while providing cost savings and service level improvements.
 Customer Service and
Outsourcing
Advantages and disadvantages of outsourcing
Disdvantages of outsourcing:
Outsourcing involves handing over direct control over a business
function or process to a third party. As such, it comes with certain risks.
For example, when outsourcing, you may experience problems with:
1.service delivery - which may fall behind time or below expectation
2.confidentiality and security - which may be at risk
3.lack of flexibility - contract could prove too rigid to accommodate
change
4.management difficulties - changes at the outsourcing company could
lead to friction
5.instability - the outsourcing company could go out of business
 Customer Service
Competitiveness
What is competitiveness?
competitiveness in business refers to a company's ability to
achieve more sales or customer loyalty than their competitors
due to the quality, price or a combination of both factors.
Why it is important?
When a market is competitive, businesses will have greater
incentives to lower prices, to improve the quality of their
products and services, and to provide buyers with more
options.
That is, businesses will need to innovate to make their
products different and better than the rest.
Customer Service Competitiveness
 Customer Service
Competitiveness
This means the customer service department plays a key role
to create a competitive advantage:
First of all, it plays a key role in retaining customers. Loyalty is
increased when service issues are resolved on the first call. And
as we know, keeping loyal customers is less expensive than
gaining new ones. Customers can be influenced by one single
experience –which could be the deciding factor to stay or leave!
Second, a positive experience with a customer service
department leads to positive word of mouth, positive
testimonials and online reviews, which will help to gain new
customers.
 Value-Added Logistical Services
What is Value added?
In simple words: Anything extra given to that thing or product
is known as value added .
Value Added Services are also called premium services. Many
logistics service companies do not restrict themselves to
transporting goods, but offer their customers services like
picking, packing and quality control.
Value Added Services (VAS) are usually exactly tailored to the
wishes and needs of the customer. In most cases, it is an effort
to create a more efficient supply chain. But there are other VAS
in logistics that are not about optimising the supply chain.
 Value-Added Logistical Services
The whole supply chain can be optimized by Value Added Services. Logistics
companies take on additional tasks apart from transport, handling and
warehousing:
1.Repairs
2. handling of return shipments and reclamations
3. packaging and re-packaging.

There are also Value Added Services in the classic logistics tasks that logistics
providers offer their customers:
1.Same Day Delivery
2.On Board Couriers for urgent and sensitive shipments
3.customs handling
 Types of Logistics
Inbound logistics
Outbound logistics
Reverse logistics
Green logistics
Third-party logistics
Fourth-party logistics
 Types of Logistics
Inbound logistics:
Inbound logistics is the way materials and other goods
are brought into a company. This process includes the
steps to order, receive, store, transport and manage
incoming supplies. Inbound logistics focuses on the
supply part of the supply-demand equation.
 Types of Logistics
Outbound logistics:
 Outbound logistics focuses on the demand side of
the supply-demand equation. The process involves
storing and moving goods to the customer or end
user. The steps include order fulfillment, packing,
shipping, delivery and customer service related to
delivery.
 Types of Logistics
Reverse logistics :
Reverse logistics refers to the supply chain process of
returning products from end users back through the
supply chain to either the retailer or manufacturer.
Green Logistics:
Green logistics simply means minimising potential
damage to the environment due to the logistics.
Examples of green logistics include switching to
electric vehicles for transport
 Types of Logistics
Third-Party Logistics:
A 3PL (Third-Party Logistics) is a partner or service that
helps ecommerce merchants manage their supply chain.
Common 3PL services include warehouse and inventory
management, order fulfillment, shipping coordination,
retail distribution, exchanges, and returns.
Fourth-party logistics:
Fourth-party logistics, also known as 4PL, is an operational
model in which a business outsources its entire supply
chain management and logistics to one external service
provider.
 Types of Logistics
What is an example of 3PL and 4PL logistics?
In our farm-to-grocery store example, a 3PL may be
responsible for packing the Vegetables in cartons in addition to
moving the vegetables from the farm to the grocery store.
In a 4PL model, an enterprise outsources management of
logistics activities as well as the execution across the supply
chain.
A 3PL provider focuses on the day-to-day operations of your
supply chain logistics while a 4PL focuses on optimizing your
entire supply chain.
 Selection of Logistics Service
Provider
Selecting the right third-party logistics service provider can be a
challenging experience for companies
1. Logistics Capabilities
This one is crucial, as it encapsulates the role of a third-party
logistics company: every third-party logistics service
provider must be competent in the specific service areas
that meet the client company’s needs.
2. Focus on Customer Satisfaction
Does the logistics provider prioritize customer
service, responsiveness, fluid lines of communication,
and effective problem-solving? These elements can be challenging
to ascertain early on but do your homework.
 Selection of Logistics Service
Provider
3. Commitment to Technology
When you’re selecting a third-party logistic service
provider, consider technology that works for you and
with you. The 3PL’s technology should simplify and
streamline your processes, automating your most
tiresome tasks.
4. Safety Record
Due to the ever-changing landscape of safety
regulations, you must select a carrier with a strong
safety record. A review of safety ratings and statistics
 Selection of Logistics Service
Provider
5. Adaptability
Not all businesses are the same. While a 3PL might
have a full range of logistics and fulfillment services,
your business might not need access to all of them
right now or ever. The right 3PL understands the
importance of creating a custom plan specific to your
business needs and vision. As you grow and your
needs change, your 3PL partner will be there to help
accommodate your business’s expansion.
 Outsourcing Value Proposition
A value proposition is a statement that clearly
identifies the benefits a company's products and
services will deliver to its customers.
The concept of a value proposition is not unique to
outsourcing. It is something that all logistics service
providers should have to distinguish them and to
draw the attention of potential customers. This
applies to 3PLs, logistics centers, trucking
companies, freight forwarders, warehouses, and
others.
 Outsourcing Value Proposition
What is a good value proposition?
A value proposition should clearly explain how a
product fills a need, communicate the specifics of its
added benefit, and state the reason why it's better
than similar products on the market. The ideal value
proposition is to-the-point and appeals to a
customer's strongest decision-making drivers.