SCM and Service Quality - Assignment Example

SCM and service quality Assignment Critically examine its characteristics and demonstrate understanding of how Event (Service) SCM differs from SCM for physical goods, using relevant examples. SCM is the direction of a mesh of interlinked businesses engaged in the ultimate provision of product services needed by end user consumers. Typically, CRM extends all movement and storage of merchandise from the point of originality to the destination. As such, it is employed by event managers to ascertain that their supply string is exemplary and cost advantageous. SCM is thus a mix of steps that an event manager takes to transform raw components into a successful event (De Waart, 2013, p. 22) Supply chain tools are robust, feature-rich tools meant to enhance operations from end to end. Current Supply Chain Management tools are capable of helping event managers and organizations achieve and retain a competitive edge through empowering them to streamline and improve their most vital supply chain operations from the beginning to the end. With the tools of supply chain management installed, the event manager and the organization in question can maximize cost-efficiency; enhance productivity while giving the bottom line a massive boost. The functionality is crafted to automate totally and enhance chain process (De Waart, 2013, p. 22). The supply chain package aids the event manager in bettering the supervision and management of the supplies, raw materials and the components needed for the events in the organization. As such, any possible threats of excessive wastes are accounted for, in the process freeing up valuable real estate for other vital functions and cuts on associated storage charges. In its role in the management of orders, the supply chain management drastically accelerates the execution of the whole order-to-delivery cycle through enabling firms to be more productive. SCM allows the dynamic scheduling of supplier deliveries to more efficiently meet the demand and more quickly create the pricing and product configuration (De Waart, 2013, p. 24) Another critical aspect of SCM is the ability to forecast and plan events in the organization (De Waart, 2013, p. 25). With the tools of SCM in place, the event manager can more specifically anticipate client needs and plan the procurement and production activities more accurately. Consequently, the event manager can avoid unnecessary purchases of raw materials, reduce production over-runs, and curtail the need to store vast quantities of processed goods. Another feature of supply chain management is logistical capability. With the rapid expansion of the organization on the global scale, the supply chains of such firms gain much complexity (De Waart, 2013, p. 26). The complexity results in challenges in the coordination of the various warehouses and events channels without an effective SCM installed. Nonetheless, with SCM the organization and the event manager can bolster on-time delivery performance and the enhance client satisfaction through the achievement of total visibility into how processed products are stored and distributed irrespective of the amount of facilities in participation. Similarly, supply chain management is associated with procurement services. Procurement involves all the activities connected with sourcing, purchasing, and any payables. The inclusion of supply chain management sets in the automation of such processes throughout the entire network of the company’s suppliers (De Waart, 2013, p. 24). Consequently, the event manager can foster stronger relationships with the organization’s vendors, and easily manage, their productivity, enhance productivity needed in the leveraging voluminous discounts and other cost-cutting strategies. Ultimately, CSM can simplify and expedite the inspection of defective events and processes on either the buy and sell sides of the business. Such a system enables the events manager automate the processing of claims with the suppliers of the business. The merits of attaining excellence in service parts management are compelling in most instances involving heightened customer satisfaction demands, more product sales, and more service contract revenues. Service supply chain management has been regarded as one of the most instrumental sources of competitive advantage (Arlbjørn et al., 2011, P. 278). Nevertheless, extended periods of neglecting the advantages to be gained by service supply chain management an understanding of the differences between event supply management and supply chain management for physical goods is imperative. Service supply chain Unlike supply chain management for physical goods centers on all the activities involved in planning, moving and repairing of materials to promote Aftersales support of the products of an organization. Among other activities, events supply chain management extends to service parts planning, the purchase of service parts, warehousing and distributing of merchandise and other recovery alternatives. Most of the services involved in events supply chain management are typically undertaken in the field, within the organization or by third party services providers through outsourcing. Among the most vital aspects in SCM, is that a differentiation in tasks frequently takes place. The differentiation, for instance, is usually practiced in varied forms of relationships with clients and the suppliers based on segmentation. Arlbjørn et al., (2011, P. 278) posed various service process that draw distinctions between services and physical SCM. Information flow such as demand prediction and the sharing of information is included in event SCM. The management of customer relationships in the form of customer segmentation and the management of relationships distinguished service SCM. The fostering of relationships between the management and suppliers, for example, the identification of vendors, their selection, segmentation and the management of the relationships also sets apart events SCM. Unlike physical SCM, event SCM extends to the making of promises to the clients and empowering the service providers. Outline your understanding of how Service quality is monitored and measured. Critically analyse why service quality gaps occur and how such gaps should be managed, leading to service quality recovery Service quality focuses on expectations and performance. When a business has a high service quality, customers can satisfy their needs that will increase the competitive edge of the servicing firm. Significant changes in the past years have revealed new dimensions of quality that goes ahead to lay the foundation for service quality. Years back, it was understood all about satisfying the customers and seeing clients as purchasers of goods and services. Recently the quality has improved in that firms aim at delighting the customer and understanding customers as users of products and service. With each step of service quality development, a new era of quality dimension has emerged. Service quality has been brought close to the central role of firms rather keeping quality as in a traditional role as a separate function which is deployed only towards outside customer. Quality is necessary for internal and external marketing, finance, material management, and administrative function. The search for a meaning in service quality leaves as questioning if a universal quality theory exists or whether service quality is distinct from manufacturing quality The SERVQUAL model is used to point out the dimension of service quality. The first dimension is reliability from the business perspective is the ability to perform the promised services accurately. Customers will use time, consistency, and accuracy to measure a firm’s reliability. Second dimension is assurance that implies inspiring trust and confidence of the staff. The clients will judge this aspect of personnel competence, credibility, probity, and confidentiality. Third dimension is tangibles that represent the service physically; the physical representation of a business service. Customers’ criteria will be based on technology, employees, communication materials, and physical facilities. The fourth dimension is empathy that entails treating customers as individuals, and clients will acknowledge empathy if there is access to staff, communication, and individualized attention. The fifth dimension is responsiveness that entails willingness to help customers and provide prompt service. The customers will feel responsiveness is available if there is desire to help, complaint handling, flexibility, and immediate attention to request and questions. There are at least five significant gaps in service quality concept. The three important gaps, which are associated with the external customers are gap 1and gap because they have a distinctive relationship with the clients. Service quality is the measured using the following determinants. One knows the customers that involve making an effort to understand the customers wants and needs. Tangibles: that means the physical evidence of the service rendered. Reliability: that means living up to the promises in an accurate manner. Responsiveness: that entails the willingness of the employees to help customers meeting their needs. Security: that ensures customers of their safety. Courtesy: consideration of the client’s property with clean, neat appearance of the receptionists. Access: a firm should have convenient working hours and location for accessibility. Communication: within and without the business. Competence: for a business to be considered having quality products it should employee competent staff (Cronin et al. 1992, p. 55) Gap 1: the gap between consumer’s perception and management perceptions. The gap arises when the firm’s management or a given service provider fails to perceive correctly what the customers wants. Lack of a marketing research orientation, insufficient upward communication and many layers of management also lead to this gap. Communication is an imperative tool in reducing this gap. A firm should employ market researchers to identify the consumers demands. Internal communication should also be fostered between the employees and the management. Reducing the levels of management in an organization can also be the strategy. Relate customer data to overall service plan. Track performance on consumer satisfaction (Shahin & Janatyan, 2011, p. 99). Gap 2: gap between management belief and service quality perception. Management may correctly perceive what a consumer wants, but fails to set a performance standard. Insufficient commitment to service quality and inadequate task of standardization plus failing to attain the set targets. Commitment to service quality among the managers, as well as the service providers, is the crucial aspect in closing the quality perception gap. Setting too rigid goals and planning procedure should be avoided (Shahin & Janatyan, 2011, p. 100). Gap 3: the gap between service quality standards and service delivery. Occurs when the service personnel delivers inadequate services due to lack of training, incapability, and unwillingness to meet the set standards. Internal marketing is a paramount tool in this scenario. The employees should know the process, procedure and activities within the organization. Training of the employees can also be deployed in producing service quality. Sometimes the supervisory system can act as the barrier, changing it may seem a strategy (Shahin & Janatyan, 2011, p. 100). Gap 4: gap between delivering service and external communication. Consumers perceptions are influenced by the statements availed by a company’s representatives and the strategy of advertisement. A firm might make overpromises or misrepresent customers by advertisement announcement or contact personnel information. Such scenario occurs when the is lack integration of marketing communication with operations; the organization fails to perform as per expectations. In reducing the gap, much attention should be paid to advertising campaigns plan by making them more realistic and accurate to avoid creating the wrong perception of the consumers (Shahin & Janatyan, 2011, p. 100). Gap 5: gap between customer expected service and experience. Occurs when the consumer misinterprets the service quality. Tracing how customers perceive a firm’s product is paramount to reducing this gap. Employee field researchers to get feedback from the ground. Develop team environment work together. Provide training to employees about the customer. Harmonizing roles by defining in customer service terms. Providing opportunities for growth and development (Shahin & Janatyan, 2011, p. 101). References list Arlbjørn, J.S., Freytag, P.V. & de Haas, H. 2011, "Service supply chain management", International Journal of Physical Distribution & Logistics Management, vol. 41, no. 3, pp. 277-295. Cronin, J.J. & Taylor, S.A. 1992, "Measuring Service Quality: A Reexamination and Extension", Journal of Marketing, vol. 56, no. 3, pp. 55. De Waart, D. 2013, "Service Supply Chain Management: The Great Untapped Resource -- Following years of neglect, after-sales parts services have atrophied and are robbing manufacturers of profits, driving up inventory costs, and creating higher return rates", EBN, , pp. 21-30 Shahin, A. & Janatyan, N. 2011, "Estimation of Customer Dissatisfaction Based on Service Quality Gaps by Correlation and Regression Analysis in a Travel Agency", International Journal of Business and Management, vol. 6, no. 3, pp. 99-108. Read More