Explain how order management and customer service are related.

Explain how order management and customer service are related.

Explain how order management and customer service are related.

After reading and reviewing Chapters 8 and 9 (I will share PDF book), reflect and discuss the following questions:

Explain how order management and customer service are related.

Describe the two approaches to order management. How are they different? How are they related.

Explain why inventory costs and inventory levels have declined relative to GDP over the last 20 years. Is this beneficial to the economy? Why or why not?

Use the following headings to organize your paper: Introduction, Question 1, Question 2, Question 3, Conclusion, References.

Your response to the discussion prompt should contain a minimum of 500 words. Your response should be formatted in APA style and reference the text book as well as one other authored source.

Once you send me this assignment, i will send you 2 classmate’s posts and you have to provide meaningful comments in 150 words minimum for each classmate.

Classmate 1: Hirva

Introduction

Chapter 8, Order Management and Customer Service, addresses the concepts of customer service and order management, and how they are related and managed within organizations. The basic elements of customer service are identified and discussed from the perspectives of how they affect both buyers and sellers (Coyle, Langley Jr, Novack, & Gibson, 2017). The effective management of inventories in the supply chain is one of the key factors for success in any organization. Chapter 9, Managing Inventory in the Supply Chain, offers a comprehensive view of this important process (Coyle, Langley Jr, Novack, & Gibson, 2017).

Question 1: Explain how order management and customer service are related.

Order management and customer service serve as the mechanisms to execute the plans. Order management refers to how an organization receives an order, how it fills an order and how it is shipped. On the other hand, customer service includes all activities that impact information flow, product flow, and cash flow between the organization and its customers. Customer service is involved in both influencing a customer’s order as well as in executing the customer’s order. The concept of Customer Relationship Management influences the customer’s order. Customers whose ordering patterns maximize the efficiencies of the shipping organization’s logistics network will be the most profitable customers (Coyle, Langley Jr, Novack, & Gibson, 2017). Using the CRM philosophy allows an organization to identify and reward those customers. In addition, both present and potential customers will take a positive view of consistent and predictable order cycle length and acceptable response times. By starting the process with an understanding of customer needs, organizations can design order management systems that will be viewed as superior to competitor firms (Coyle, Langley Jr, Novack, & Gibson, 2017).

Question 2: Describe the two approaches to order management. How are they different? How are they related?

Order management defines and sets in motion the logistics infrastructure of the organization. Order management starts when a customer places an order and ends once they receive their package or service. It allows a business to coordinate the entire fulfillment process — from order collection, inventory and delivery visibility to service availability (IBM, n.d.). There are 2 phases of order management: influencing the order and executing the order. The first phase, influencing the order aims to change the manner by which its customer place orders while the second phase occurs after the organization receives the order. Though both the phases have different step in order to achieve their end results they both have a common thing. Both phases, influencing the order and executing the order, are influenced by customer service (Coyle, Langley Jr, Novack, & Gibson, 2017).

Question 3: Explain why inventory costs and inventory levels have declined relative to GDP over the last 20 years. Is this beneficial to the economy? Why or why not?

Inventory as a percent of overall business activity has continued to decline. Even though the absolute value of inventory increased during this time period, it decreased as a percent of GDP. This declining trend indicates that the economy is producing more revenue with less assets and working capital. Explanatory factors include greater expertise in managing inventory, innovations in information technology, greater competitiveness in markets for transportation services, and emphasis on reducing cost through the elimination of non-value-adding activities. Inventories represent a cost of doing business and are included in the prices of products and services. Reductions in inventory costs, especially if there is no decline in customer service, are beneficial to both buyers and sellers (Coyle, Langley Jr, Novack, & Gibson, 2017).

Conclusion

As discussed above, the concepts of order management and customer service serve as the mechanisms to execute the plans and the effective management of inventories in the supply chain is one of the key factors for success in any organization.

 

References

Coyle, J., Langley Jr, C., Novack, R., & Gibson, B. (2017). Supply Chain Management- A logistics Perspective (10th ed.). Boston, MA: Cengage Learning.

IBM. (n.d.). Order management. Retrieved from https://www.ibm.com/supply-chain/order-management

Classmate 2: Juhi

Introduction

Order management is the interface between buyers and sellers in the market and directly influences customer service. The five outputs from order management which influence customer service are product availability, order cycle time, logistics operations responsiveness, logistics system information and postsale logistics support. The effective management of inventories in the supply chain is a key factor of success in any organization. Inventory management has taken a strategic position in most firms today.

Explain how order management and customer service are related

 

Order management defines the logistics infrastructure of the organization (Coyle, Langley, Novack & Gibson, 2017). Customer service is anything that touches the customer. It can be described as a philosophy, as performance measures, or as an activity. Customer service as a performance measure emphasizes measures such as on time delivery and percentage of orders filled complete. Such measures encompass strategic, tactical and operational aspects of order management. Customer service as an activity treats it as a particular task that an organization must perform to satisfy a customer’s order requirements. The below picture depicts the relationship between order management and customer service.

Describe the two approaches to order management. How are they different? How are they related?

The two aspects of order management are influencing the customer’s order and executing the customer’s order (Coyle et al, 2017). The first aspect is where an organization attempts to change the manner by which its customers place orders. Step 1 in this phase is to segment the customer base by profitability. The second step is to identify the product/service package for each customer segment. The third step is to develop and execute the best processes. The fourth step is to measure performance and continuously improve. The order execution phase occurs after the organization receives the order, which involves order management and order fulfillment. The term order to cash is used for outbound-to-customer shipments.

Explain why inventory costs and inventory levels have declined relative to GDP over the last 20 years. Is this beneficial to the economy? Why or why not?

Inventories represent a cost of doing business and are included in the cost of goods and services. The decline of inventory costs as a percent of GDP indicates that the economy is producing more revenue with less assets and working capital investment (Coyle et al, 2017). This means the inventory management efficiency has increased. This is beneficial to both buyers and sellers, and the economy as a whole.

Transportation and warehousing considerations have received significant attention to lead to efficient and effective inventory management (Williams and Tokar, 2008). The flow and storage of goods and services provides a unique perspective on inventory management, being central components of the logistics function.

Conclusion

Order management is a mechanism to plan how to align the resources of an organization to meet organization and market goals (Coyle et al, 2017). Order management and customer service have a direct and critical relationship.

Inventory plays a very important role in the economy (Coyle et al, 2017). Inventory management efficiency has increased as a positive indicator for the economy due to greater expertise in managing inventory, innovations in information technology, greater competitiveness in markets for transportation services and emphasis on reducing cost through elimination of non-value adding activities.

References

Coyle, J.J., Langley, J. C., Novack, R.A., Gibson B.J. (2017). Supply Chain Management : A Logistics Perspective. Massachusetts : MA. Cengage Learning.

Williams, B, Tokar, T (2008). A review of Inventory Management Research in Major Logistics Journals. Retrieved from: https://www.researchgate.net/publication/240259211_A_Review_of_Inventory_Management_Research_in_Major_Logistics_Journals

_________________Please Comment/REply in minimum 150 words for each classmate’s post

Solution preview for the order on  explain how order management and customer service are related.

Explain how order management and customer service are related.

APA

1224 words

Get help with any homework assignment. Access thousands of already completed solutions.

Services

Place order

Purchase Solutions

24/7 Support

Contact

Email: Support@homeworksmontana.com

Phone: +1 437 539-6910