Business Logistics

Introduction

Customer service is simply the provision of services to esteemed customers before, after, and during the purchase. Turban et al. (2002) defines customer service as a sequence of activities that are designed in enhancing the customers’ satisfaction level as well as meeting their expectations. The significance of customer service varies with a product, service, customer, and industry. The interactions between these factors and their perceived success depends on employees who are at the position of adjusting to the personality of customers (Gustavsson and Patrik, 2008). From the perspective of sales engineering process, customer service is significant in enabling an organization to generate revenue and income. Therefore, customer service is an overall technique to systematic improvement (Buchanan, 2011). The experience of a customer service changes the whole of customers to an organization.

There is an argument that the level and quality of customer service is on the decreasing trend in recent years. This is mainly attributed to the lack of understanding and support from the executive and the management levels of organizations to the customer service policy (Francis, 2008). In addressing the situation, various corporations or organizations have put in place many methods in improving their levels of customer satisfaction as well as critical performance indicators. An example of these various methods includes warranty offering which builds customers’ confidence hence a good customer service.

Purpose of the Paper

This paper or study attempts to investigate whether there is a customer service problem or not in a certain company. The company under the study is situated in St. Louis, Missouri and is owned by Handy Andy. Handy Andy Inc. is a dealer in the garbage compactors that collect trashes in the large urban areas. The business is faced by some challenges such as periodic sales patterns and the broad available colors and trims that make retailers to stock and display only a unit or two. Meanwhile the factory offers warranty to its customers lasting for a period of one year. Coupled with the well-built compactors, the warranty is doing well and no complaints from customers. However, some small dealers of the Handy Andy compactors act as imposters in the business. In other words, they are trying to dwarf the plans that the handy Andy Inc. have put in place to make it thrive in the competitive business. This present the thesis of the paper that there is a customer service problem in the factory. However, this is subject to discussion as explained in the body of the paper herein.

Overview of the Paper

As already mentioned the case study under research centers on the Handy Andy Inc. dealing with the garbage compactors that collect trashes in the large urban areas. The compactors are of two types: the basic one measuring 3 feet high, 2 feet deep, and 11/2 feet wide and the deluxe model with the same dimensions but has more features. This makes the deluxe model to be more expensive. As common with the business environment, the costs of depositing the trashes at landfills rocketed, and thus translated to the high costs of these compactors. Coupled with the sporadic sales patters and broad number of trims and colors available, retailers in these properties reduced their stock.

In expanding his business, Handy Andy made an agreement with the distributors that they would deliver and install compactors in five days upon their release from the factory. In facilitating this process, Jose Ortega worked in the distribution department of the company. In his duties, Ortega was also working on the feasibility of a project in trying to determine whether the company would extend its warranty from one to two years. Since the compactors were well-built, the one year warranty was successful with limited complains from buyers. The distribution department executive was conducting the study through calling their customers who have enjoyed the utility of the compactors for quite a period of time.

However, there were some complaints from the study that baffled Ortega. It appeared that in some cities where the factory was directly distributing the compactors, some small dealers took an advantage of the situation and cancelled the order. Whenever the customers requested for original models, these imposters would say that the factory was out of stock and better models to be supplied at the same price. Moreover, they informed the buyers that they would receive better service if only they buy from them. They also indicated that not only the company was engineering the one-year warranty project.

In unveiling the uncouth behavior by these mall dealers, Ortega realized that direct distribution from the company lead to more installation of compactors as compared to those installed by these small dealers. Unlike these dealers, the direct distributors from the company did a faster delivery and also took time in explaining to the customers on the operation of these gadgets. It is through the help of his supervisor that Ortega was able to know these behind-scene activities.

Body

There is a customer serviced problem prevalent in the company and it is caused by the middlemen, the so called small dealers. They first present a bad image of company by ensuring that the company does not meet its obligation to the esteemed customers. The small dealers make a false statement that the factory is running out stock and would supply better models which is not the real case on the ground. Moreover, they slowly deliver the compactors and do not explain on the operation of the gadgets. These present a poor customer service hence little or no customer satisfaction level. They also act as imposters that they are part and parcel of the one-year warranty and this is a false statement.

The false statement made by the small dealers that they, not the Handy Andy Inc., stood behind the one year warranty, may be sometimes a problem and not a problem to the company. The problem is that in an event a compactor develop a problem before the one- year elapses, they may not offer the warranty. They would misled the customers by false information as they have been identified with, and this is a customer service problem due to dissatisfaction. On the other hand, it may not be a problem as they promote the business by the one-year warranty though in the real since they don’t actually offer it. Coupled with the fact that the compactors are well-built and durable, the warranty is just a promotion strategy.

In case the statement presents a problem, the solution lies with the company. In uncovering the scrupulous acts of small dealers, Ortega was advised by his supervisor to call the customers and the truth was known. The marketing vice president can follow the suit. Since the compactors produced by Handy Andy Inc. have been positioned in the minds of their customers, they totally believe the company. The marketing deputy president needs to call the same people who have experienced the utility of the compactors in less than one year, informing them that only the company guarantees the one-year warranty. So in an event they experience any complication with compactors, they consult the Handy Andy Inc. and the issue would be solved within the stipulated time.

Conclusion and Lessons Leant

Customer service is designed in enhancing the customers’ satisfaction levels as well as meeting their expectations. Though the customer service may not be attained if the top management in organization does not adhere to the customer service policy, various organizations have put in place many methods in improving their levels of customer satisfaction. From the case study, it is important that organizations assess the activities carried out by middlemen in their supply chain. They can either build or destroy a company’s brand name. It is an object lesson for the Handy Andy Inc. that it need to know more about its retailer (small dealers) so that they don’t mess up with the factory.

Recommendations

The marketing deputy president needs to call their customers who have experienced the utility of the compactors in less than one year, informing them that only the company guarantees the one-year warranty.
The Handy Andy Inc. to remove small dealers from its supply chain since they are not trustworthy.

References

Buchanan, L. (2011). A Customer Service Makeover. Inc. Magazine.

Francis, J. (2008). Benchmarking: Get the gain without the Pain. Supply Chain management Review, 12(3), 22-29.

Gustavsson, M. & Patrik, J. (2008). Perceived Quality Deficiencies of Demand Information and Their Consequences. International Journal of Logistics: Research and Application, 11(4), 295-312.

Turban, E. (2002). Electronic Commerce: A Managerial Perspective. Prentice Hall.