{"id":426,"date":"2016-07-13T12:54:04","date_gmt":"2016-07-13T17:54:04","guid":{"rendered":"http:\/\/blogs.uww.edu\/prasad\/?page_id=426"},"modified":"2016-07-13T12:54:04","modified_gmt":"2016-07-13T17:54:04","slug":"quality-of-customer-service-in-supply-chain-system-a-diagnostic-study","status":"publish","type":"page","link":"https:\/\/blogs.uww.edu\/prasad\/teaching\/independent-study\/quality-of-customer-service-in-supply-chain-system-a-diagnostic-study\/","title":{"rendered":"Quality of customer service in supply chain system: a diagnostic study"},"content":{"rendered":"<ol>\n<li>K. Sinha and A. Subash Babu<\/li>\n<\/ol>\n<h2>International Journal of Quality &amp; Reliability Management<\/h2>\n<p>1998, Vol. 15, No. 8\/9, P. 844-859<\/p>\n<p>&nbsp;<\/p>\n<p>1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction<\/p>\n<ol>\n<li>a) Supply Chain Management and Quality Customer Service<\/li>\n<li>i) Supply chains can improve customer service quality<\/li>\n<li>ii) Action centers at each level help to improve quality<\/li>\n<\/ol>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Quality should not necessarily be measured by volume of customers, but rather by the customer\u2019s level of satisfaction<\/p>\n<ol>\n<li>b) New Performance Metric: Depot Service Index (DSI)<\/li>\n<li>i) Create a meaningful assessment of how the customer is served<\/li>\n<li>ii) How the system\u2019s performance can be measured<\/li>\n<\/ol>\n<p>2)\u00a0\u00a0\u00a0\u00a0\u00a0 Data collection and preliminary analysis<\/p>\n<ol>\n<li>a) Existing Measurements<\/li>\n<li>i) Two types:<\/li>\n<\/ol>\n<p>(1)\u00a0\u00a0 Fraction of overall demand satisfied during the month<\/p>\n<p>(2)\u00a0\u00a0 Overall system inventory<\/p>\n<ol>\n<li>ii) Problems:<\/li>\n<\/ol>\n<p>(1)\u00a0\u00a0 Forced management to look inward rather than outward at customer satisfaction<\/p>\n<p>(2)\u00a0\u00a0 Focused only on monthly performance<\/p>\n<p>(3)\u00a0\u00a0 Paid too much attention to larger requirements of larger depots<\/p>\n<ol>\n<li>b) Introduction of new metric: Depot Service Index (DSI)<\/li>\n<li>i) In addition to existing measures (complementary)<\/li>\n<li>ii) Benefits<\/li>\n<\/ol>\n<p>(1)\u00a0\u00a0 More concern for customers<\/p>\n<p>(2)\u00a0\u00a0 Small depots are effectively reflected and measured<\/p>\n<p>(3)\u00a0\u00a0 Captures the success rate of product-depot combinations that were fully satisfied<\/p>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Calculation<\/p>\n<p>(1)\u00a0\u00a0 Orders classified as HITS and MISSES<\/p>\n<p>(2)\u00a0\u00a0 DSI = Number of HITs \/ Total number of orders<\/p>\n<p>3)\u00a0\u00a0\u00a0\u00a0\u00a0 Statistical Analysis<\/p>\n<ol>\n<li>a) Three time-related factors<\/li>\n<li>i) Time gap between forecast period and demand period (Significant)<\/li>\n<li>ii) Seasonal demand fluctuations<\/li>\n<\/ol>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Disruptions in network<\/p>\n<ol>\n<li>b) Six Depot-specific factors<\/li>\n<li>i) Distance between depot and plants (Significant)<\/li>\n<li>ii) Length of transit time (Significant)<\/li>\n<\/ol>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Variability in transit time<\/p>\n<ol>\n<li>iv) Number of consignments (Significant)<\/li>\n<li>v) Quantum of sales (Significant)<\/li>\n<li>vi) Requirements of \u201centry permit\u201d for dispatches<\/li>\n<\/ol>\n<p>4)\u00a0\u00a0\u00a0\u00a0\u00a0 Impact of Policies on Customer Service<\/p>\n<ol>\n<li>a) Strategic Decisions<\/li>\n<li>i) Restructuring decisions: opening, closing or shifting of depots<\/li>\n<li>ii) Management should try to bring down transit time from plants to depots to increase DSI<\/li>\n<\/ol>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Merging of two smaller plants to increase sales will increase DSI<\/p>\n<ol>\n<li>b) Operational Decisions<\/li>\n<li>i) Management should try to bring down transit time from plants to depots to increase DSI<\/li>\n<li>ii) Merging of two smaller plants to increase sales will increase DSI<\/li>\n<li>c) Tactical Decisions<\/li>\n<li>i) Management should try to bring down transit time from plants to depots to increase DSI<\/li>\n<li>ii) Merging of two smaller plants to increase sales will increase DSI<\/li>\n<li>d) Overall<\/li>\n<li>i) All three cases show the importance of increasing sales per depot and reducing transit time.<\/li>\n<\/ol>\n<p>5)\u00a0\u00a0\u00a0\u00a0\u00a0 Possible Improvements<\/p>\n<ol>\n<li>a) Contract only one transporter on each route in order to forge more effective\/efficient relationships<\/li>\n<li>b) Create a hub and spoke system to service depots more effectively<\/li>\n<li>c) Depots to estimate demand on a rolling basis rather than once a month to improve time lag<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>K. Sinha and A. Subash Babu International Journal of Quality &amp; Reliability Management 1998, Vol. 15, No. 8\/9, P. 844-859 &nbsp; 1)\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction a) Supply Chain Management and Quality Customer Service i) Supply chains can improve customer service quality ii) Action centers at each level help to improve quality iii)\u00a0\u00a0\u00a0\u00a0 Quality should not necessarily be [&hellip;]<\/p>\n","protected":false},"author":3916,"featured_media":0,"parent":118,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-426","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/users\/3916"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/comments?post=426"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/426\/revisions"}],"predecessor-version":[{"id":427,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/426\/revisions\/427"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/118"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/media?parent=426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}