- What service experience should DWC promise to Monster Inc.? What service experience should DWC promise to the balance of its customers?
For a business to exist, there must be the customer, and for the industry to prosper, each customer has to be treated right. Customer experience comes in here to enable better understand how to treat all the customers right and equally. Customer experienceable revolves basically around, reliability, accountability, availability and adaptation to the dynamic customer needs. A company that has the right customer experience strategy in place will definitely be in a position to win more customers and consequently more business (Bergman & Klefsjö, 2010).
In the case above, Dynamic World Corporation is on the thin line to losing a big customer which translates to a loss of business and revenue growth. Having in mind that Monster Inc. is their largest customer, thus the customer experience strategy must be incorporated in such a way that it takes care of such a client. Dynamic World Corporation needs to make an official apology to Monster Inc. to acknowledge that the mistake happened. DWC needs to promise Monster Inc. on offering a discount price for the delayed delivery and assure them of not repeating the same mistake. DWC needs to also promise to handle Monster Inc. deliveries as a top priority for them to feel more valued as a client. DWC also needs to assure Monster Inc. of bringing a professional on board to specifically deal with Monster’s account management. By having someone dedicated to deal with Monster Inc. portfolio, there will be no delays whatsoever and issues will be escalated expeditiously. DWC also need to promise Monster Inc. of a timeline in which they will be taking to handle any issues relayed with logistics to avoid any disappointment in service delivery (U.S. Citizenship and Immigration Services, 2000).
Dynamic World Corporation having encountered the challenge on delayed delivery with Monster Inc. must also strategize on their customer service charter to give confidence to their other clients. DWC needs to promise their clients of 24/7 contact support. That their lines will always be open for calls and someone will always be available to handle any queries. This will enable clients to feel valued and that the company is always ready to help them in case of any questions.
DWC also need to show dedication by assuring their customers of a turnaround time once they place an order. They could choose 24 hours turnaround time owing to the traffic of orders they receive and this will show commitment from the company to deliver customers’ orders. DWC also needs to showcase to its clients the management channel which customer orders are taken through before finally reaching to the customer destination. This will help clients better track their orders with much hustle through the delivery channel (Bruhn, 2012).
DWC also needs to promise its clients of the introduction of a seamless digital platform under which customers will be placing and tracking their orders. As you are well aware that customers in this age of technology are looking to performing most of their transactions online to save time and other cost involved (Bruhn, 2012). DWC should also promise its clients of more online engagements through social media sites as a means of enhancing customer engagement and satisfaction.
Additionally, Dynamic World Corporation needs to promise their clients of opening up new branches in various location in a bid to increase market coverage. This will be a move aimed at taking the products and services closer to the clients and they do not have to necessarily drive long distances to get served. DWC could implement such a project in phases that will see the company eventually enhance the customer experience.
Dynamic World Corporation also needs to promise a rebranding campaign on all media outlets as well as social media platforms. A rebranding campaign would go a long way in winning back the hearts of the customer as well as attract new clients. The rebranding campaign could involve a change in logo or company colors as well as use the campaign to announce discount offers and new products that have been added to their portfolio. DWS promising a rebranding campaign is going to keep customers eager to see what is new and that form of anticipation results to flash sales meaning more business for DWS.
Dynamic World Corporation also to promise its customers on carrying out a survey to better understand the changing customer habits trends. As business continue evolving so are customer buying habits and we are now finding customer being more specific to certain products with specific brands. In carrying out such a survey, it will be beneficial to DWS in understanding the clientele in a better way and focus on products and services that address the customers thus enhancing customer experience greatly (Zafer, 2015).
- What infrastructure should DWC put in place to deliver this promise to Monster Inc.?
Dynamic World Corporation obviously have key areas to improve on and also put in order to enhance the customer experience. Enhancing customer experience will have to begin with the employees at the company. Employees are basically the face of the company since they are the bridging competent between the customers and the corporation. The corporation needs to look into the employee welfare and this can be done in various ways from a pay bonus, rewarding the best performers based on laid down key performance indexes. Going further even to come up with a mentorship program for employees is also keep in keep them motivated. Appreciating employees in various ways motivates them and even as they execute their duties, they give the same energy to clients. Training employees on a couple of communication skills like how to handle disgruntled clients will also enable them to enhance the customer experience.
Dynamic World Corporation needs to upgrade its infrastructure in several ways to enable them to handle clients like Monster Inc. more smoothly. DWC needs to have a fully equipped contact center and bring onboard qualified customer care personnel to handle customer queries 24 hours a day and seven days a week. By having a contact center, the corporation will be able to track customer queries efficiently since there will be a team leader supervising the customer care personnel. Basically, the operations in the contact center will be running under a customer relationship management platform that will be tracking all forms of correspondence between a client and the company. This will translate to more efficiency as customer issues will be escalated through the proper channel and handled appropriately (Pennington, 2016).
Dynamic World Corporation also needs to heavily invest in the digital transformation journey in order to remain relevant within the industry. It is for a fact that businesses in this day and age are digitizing most business process in a bid to enhance the customer experience as well keep with current market trends. Thus, DWC needs to sort for the services of an application developer who can create an application that will enable clients like Monster Inc to track their orders as well as engage with DYC without necessarily making phone calls. This would also go hand in hand it upgrading their website to include a section where a customer can track their order. This enables customers to conduct online self-service without much hustle and this will also translate to reduced transaction cost on DWC as well as improved seamless service delivery (Lafrenière, 2020).
Dynamic World Corporation also needs to invest in the logistics department heavily. These could include purchasing more delivery trucks and hiring more competent truck drivers to ensure faster deliveries regardless of the order traffic. They could also opt to lease the logistics department to a reputable courier firm that can handle their nature of business.
Dynamic World Corporation also needs to invest in hiring more competent account managers. Account managers will be assigned specific accounts like Monster Inc. that are crucial for their business due to the volume of business they are bringing onboard. Having specifically account managers will ensure that all details concerning that account are handled on time and the account manager is in constant communication with the client in case of any updates.
Dynamic World Corporation also needs to come up with a loyalty program to reward their repeat customers. Customer appreciation is crucial in enhancing the customer experience for any business. Appreciating a customer makes them feel valued and respected by the business and this makes want to engage and do more business with the company. The appreciation could be in many different forms from offering discounts to treating the customers for a paid holiday (Bolton, 2016). Customer appreciation will enable the customer to trust the business more plus their products and services.
Additionally, Dynamic World Corporation also needs to conduct a market penetration evaluation. This will enable them to map the location of most of their client with the business location and consequently help them identify the market gaps. After such a survey, they should consider opening up branches of the corporation in other cities and countries that would enable them to deliver their products more efficiently to customers (Pennington, 2016).
- What 10 questions would you include on DWC’s customer-satisfaction checklist to make sure you had a comprehensive, well-thought-out customer fulfilment strategy in place? Create that Checklist below.
Dynamic World Corporation must come up with a checklist to ensure that can measure their level of customer satisfaction and know what areas to improve on. Checklist basically points out the key driving factors and in case factors that gauge the level of customer satisfaction after dealing with Dynamic World Corporation.
The customer satisfaction checklist needs to be conclusive in the sense that it needs to take care of all aspects of the business from the product sold, the staff, the cost of service as well as the mode of delivery (Villani, 2019). At the end of the checklist, one must also include a section for customer input on what they think the company can improve on to serve them better. The following are a list of the questions.
- What was the experience with the sales team? ……….
- Did any of our sales team do any of the following?
Smile at you as they approached Yes….. No……..
Enquire if you had any preferences Yes….. No……..
Provide relevant information in regards to our products. Yes….. No……..
None of the above ………….
- Was your complaint resolved? …………If yes after how long?
- How well do our products meet your needs?
- a) Badly
- b) Fine
- c) Well
- d) Very well
- Was your product delivered on time? …………
- Was the product well sealed during delivery? ……………..
- How do you rate your value for money for the products purchased?
- Based on your experience with us, are you likely to return? ………….
- Rate the company on a scale of 1-10 ………………
- What are your suggestions in making customer experience at Dynamic World Corporation?
- Using the Guide provided in the Case Writing Tools section below, prepare a SWOT Analysis Chart which evaluates the “as-is” and the “to-be” condition of DWC. Your chart should include at least 3 points for each part of SWOT.
A SWOT analysis evaluates the internal strengths and weaknesses, and the external opportunities and strength in a firm’s organizational environment (RICHARDS & GRINSTED, 2016).
Dynamic World needs to focus on moving more into artificial intelligence and inculcating robotics technology in a bid to grow and be efficient in business processes (International FAIM Conference & Azevedo, 2013). The introduction of robots will assist workers in performing most of the repetitive task around thus increasing the efficiency of doing business. Dynamic World has its business operation centers mainly concentrated in North America. Thus, the need to open up more business centers in other parts of the world including Asia and Europe as this will increase their knowledge spread of various markets as well as increase market penetration. Dynamic World also has the capability of enhancing their global market prevalence by opening more local offices within Europe and East Asia which are market that they have not completely penetrated. Penetration into these markets by setting up base will be a key marketing strategy.
Focusing on the major threats facing the firm, key among them is the consistent cyber-attacks and data privacy breaches that have immensely affected global businesses. Dynamic World needs to invest in human resources surrounding information and technology systems to caution themselves from such attacks. Another major threat facing logistics companies is terrorism as you would imagine. Dynamic World bearing in mind the investment across borders, logistics to these markets is affected by terrorism attacks will be a huge setback for business. Areas hit by terrorism attacks means that Dynamic World will not access the areas (Jacoby, 2012). We would also not ignore the fact that the global logistics industry is facing major competition from new entrants as well as other bigger competitors. Dynamic World needs to keep abreast with competition by carrying out regular market analysis to understand the dynamics occurring within the logistics industry.
Dynamic World has impeccable strengths in the distribution sector whereby they have invested heavily on trucks for delivery purposes. The firm needs to make more investment in ruling the airspace as well as the seas, meaning that Dynamic World has to think of purchasing planes and well as sea vessels. Investing in these more efficient modes of transport would mean more efficiency in making deliveries to their clients in other continents. Considering the networks created along North America by Dynamic World, the firm has potential in forming formidable partnerships with local and international entities. Dynamic World needs to perform an analysis of other market regions that they wish to penetrate and start forming formidable partnerships with local suppliers. (Crous & Charles Sturt University, 2010). Another strength at hand for Dynamic World is the technological infrastructure that they have invested in, regarding to GPS tracking, fleet management and document mapping. The firm needs to secure these platforms and use them as leverage for competition within the logistics industry to gain more clients.
Dynamic World is also faced with great weakness in terms of inexperience in handling most international markets, especially in the larger European Union. This markets have their major players who have already dominated such markets thus it would be a struggle for Dynamic World handling such regions. Delayed deliveries by Dynamic World is also a staring weakness on the firm as pointed out by one of their major clients. Another weakness facing Dynamic World would have to be the centralization within their market established regions (International FAIM Conference & Azevedo, 2013). Centralization within the logistics industry leads to fragmentation in terms of labor and logistics harmonization. This eventually raises the operational cost of managing labor and other related expenses.
- What are the key activities/steps that must be managed to achieve world-class order fulfilment? List them in the order you would complete them.
Communication is very crucial in the order fulfilment process. Dynamic World will have to increase their level of communication with their clients in regards to the progress of their order. Such engagement prevents tension on the client’s side as well as a smoother delivery process since both parties are aware of the shipment progress. What this will translate to is that there will be the right timekeeping while handing client packages (Chabot et al., 2018).
Price harmonization will also be necessary for Dynamic World for them to be globally competitive. An analysis of current market rates being offered by other logistics companies will help in the price regulation for Dynamic World. Meaning having a competitive price for Dynamic World due to its market dominance in North America and parts of Asia. Thus, having the appropriate market price for their various categories of shipments will be inevitable.
Identification of the right customer can only be achieved by treating all our customers equally. This can be done by aligning our order management platforms and harmonization of all customer request. This translates that all orders placed at Dynamic World either through, email, telephone or through the website are all consolidated depending on time before dispatch. Through such a collaboration from of all our order request platforms, Dynamic World will be able to achieve better order fulfilment (Hines, 2013).
Market segmentation for Dynamic World is also another important step that the firm needs to review to know the right place to drop customer orders. Dynamic World through an analysis of their market penetration needs to identify common pickup and delivery points in those regions. This helps them identify the right place to drop off and pick up customer orders thus bringing in more efficiency to the company.
Dynamic World also needs to integrate systems into the order fulfilment cycle for clients to get their orders in the right condition. Integration means that the company will have to look into the process involved from order placement, order processing and even monetary information to better understand the right condition of the client’s orders. The integration process ends after packaging and shipping till the client destination. Thus, more integration into the system will result in more permeability and order fulfilment and Dynamic World will be in a better position to meet the right condition of orders (Jacoby, 2012).
It is paramount for Dynamic World to offer the right product to their clients in order to achieve high customer satisfaction levels. The firm needs to be innovative enough in offering transport solutions to their client base. Their products need to be cost effective as well as secure and this can be done by heavily investing in technological solutions aimed at improving security of client’s products that are on transit.
Quantity does really matter especially when it comes to regular clients who are moving bulky products. Dynamic World has a huge investment of over 500 trucks that enable to sustain such kind of business. Not only does Dynamic need to ensure regular servicing of the trucks but also investing largely in air transport and water. This definitely will be a plus for Dynamic World since under that capacity it will be in a position move massive loads.
- What are the trade-offs David and his team can expect as they reimage DWC’s order fulfilment capabilities?
Dynamic World will definitely need some major changes made within the business systems to increase the efficiencies of the business and to better serve their clients. Most of these trade-offs expected are all in a bid to satisfy their clients and ensure more order fulfilment for the firm. The team at Dynamic World should expect a reorganization of the warehouse they have in major cities across North America. The reorganization will mostly be due to the effect of the company focusing on the third-party logistics which are meant to increase efficiency for the business. What third party logistics means for David and his team is that Dynamic will have to outsource some of its crucial services to third party firms (Hines, 2013). Outsourcing of some of the key functions like fleet management, warehouse management and even customer service center will place a big role in shaping Dynamic World. Outsourcing of services like customer services means that an independent company will take over the customer management portfolio and dedicate a certain team in dealing with Dynamic World clients specifically.
Outsourcing of fleet management will mean that a third party will take over the management of trucks and sourcing for drivers across the regions to make deliveries. This will mean that David and his team will now not have that hustle of GPS tracking and monitoring as these roles will be taken over by the third party. The outsourcing of the warehouse business operations to a third party will also be a major change for Dynamic World employees. The warehouse management will be taken over by another entity that will concentrate on the storage and dispatch of order based on the coverage region, ensuring they get to the clients on time.
David and his team will also accept the fact that order priority is also key and thus once clients request for goods to be delivered immediately meaning there is some urgency (Coppenhaver, 2018). The company will have to act according to as long as the correct billing is done for immediate orders. Inculcating order priority will push Dynamic World ahead of the logistics game.
Dynamic World will also have to come up with a means to ensure that they can match the order with the delivery locations. What this means for the warehouse management is that order that is to deliver within the warehouse are attended to then far aware orders are given second priority to avoid time wastage. This definitely is a strategy that Dynamic World will have to consider. The introduction of a third party within the order fulfilment process means that there will be a standardized process. The alignment of order processing will mean that once an order is placed till it is delivered to the client, there are standard processes that have to be followed through to ensure that clients get their orders in time and in the right condition (Chabot et al., 2018).
Similarly, the introduction of a third party to take over warehouse management will greatly improveclients’e expectations. Meaning thar to maintain and improve customer satisfaction, clients and merchants have to agree on the appropriate delivery timelines. Once there is an intervention of the third party in this process, the client’s expectations will be handled easily through proper communication of the timelines involved.
- Based on your experience, which of the causes of measurement failure hinders
outstanding order fulfillment and customer service the most?
Without a doubt, global business is becoming dynamic at a very high rate due to various challenges arising within the business environment. In our case, where we place focus on the logistics field, product complexity has been a red flag appearing currently demand by customer’s needs for individualization. Therefore, a mix of these factors has led to a challenging supply chain process (Clifford, 2011). For any logistics player to remain afloat within the industry and have a competitive advantage in the game, the tussle lies between delivering the right product to the customer vis-a-vis and taking the shortest time possible for the delivery actualize. Thus, the catch is when the logistics firm focuses on a trade-off between clearing the orders and the frequency of deliveries made within a specified duration.
Now the question arises here where the goal is iron efficiency and effectiveness of the supply chain process. For a firm like Dynamic World to ensure efficiency, they have to balance both edges of efficiency and effectiveness and make sure that the measurement factors align with the firm’s business strategy. Therefore, in a bid to look at various measurement failures applied by most firms, efficiency and effectiveness will remain our central focus. Efficiency will enable us to understand whether firms’ different measurement plans have a level of goal accomplishment and whether they align with the current business strategy (Blecker, & Friedrich, 2006). Efficiency will also enable us to measure whether the company achieves its goals using the least amount of resources.
Various logistics firms have used shipping time as a key performance index of efficiency within their business processes. Shipment performance will be measure by looking at the total number of orders shipped to customers divided by the number of orders made. In cases where we find variances in both spectrums, there is a problem. There are cases when we find the time between a customer creating an order, and the order’s delivery is quite long. Time means that the end-user who is the customer is unsatisfied. The firm’s logistical process in terms of loading and warehouse segmentation is also ailing (Ebtehaj, & University of Massachusetts Amherst. 2013). The way to address such an issue is to study the supply chain process and identify where the disconnect is arising from and most occasioning the increased demand in orders. This can be addressed by either increasing the fleet for deliveries or adding more human resources to the supply chain circle.
Some firms have also leverage on the transportation cost involved in making deliveries as their performance measurement ensures efficiency. Transportation cost involves the total expenses incurred from processing a specific order until it is delivered to the customer. These costs can be further broken down into administrative cost, order processing, and, finally, the cost incurred for the order’s actual transport. In accessing transportation costs, the firm will look at the costs incurred at every point of order processing from warehousing and delivery and find out what needs to be adjusted accordingly (Pennington, A. (2016). Any company’s primary goal is to reduce transport costs incurred and reap more revenue from the delivery process while ensuring order accuracy and delivery time are not affected. Missing out on either aspect while addressing transportation costs will lead to low order fulfillment and unhappy customers.
- How can you apply Paul’s analogous discussion of steam engines and long
jumping (learning) to improve the design of your measurement systems?
On Paul’s analogy of the steam engine, most firms try to keep and meet their goals according to the business strategy in place but fail their customers. This is where the catch is, that as long as the business meets its goals and the customers are not happy, then the company is failing (Top of FormTop of FormBlecker, & Friedrich, 2006). Therefore, the business strategy has to be in line with customer satisfaction goals. It is for this reason that the measurement instruments have to be in line with the business goals.
. In improving the measurement design of any firm, especially in our case, the measurement design focuses on several factors as explained in this context. Any measurement system has to place focus on creating coordinated efficiency. Coordinated efficiency takes care of all players involved from the inception of order placement to order fulfillment. Meaning that they all have to be synchronized to work in harmony for order fulfillment to be actualized (Ebtehaj, & University of Massachusetts Amherst. 2013). The warehousing team plus the transport division have to be in constant communication for effective order delivery.
This kind of coordination is what will ensure that more focus is placed on making the end-user, who is the customer, to be eventually satisfied. Thus, the technology in place has to encompass the order’s locality, the messaging platform for communication for all parties. This kind of linkage will improve teamwork management for order fulfillment to be achieved. Such a platform will also ensure that no particular department is overwhelmed by the number of orders in place. The orders in place can be handled by the transport systems (Fawcett, Fawcett, & Council of Supply Chain Management Professionals. 2014). Considering that different products require different storage and transportation methods and delivering timelines ensures that no overlap occurs. Warehouse management also ensures that the proper handling systems are in place in terms of surveillance. The security of customer records and safety are all taken care of by the system.
Additionally, the avoidance of any form of warehouse management mishaps will have to be avoided. Warehouse management will ensure that the correct order reaches the right customers and, therefore no order misplacement. Therefore, proper warehouse management systems must be executed to ensure any alerts occurring during order processing are handled effectively by the respective departments (Zafer, 2015). Thus, putting such a system in place ensures porous interaction from end-to-end to guarantee order fulfillment and customer satisfaction.
Regarding analogies put forth by Paul concerning the engine system and long jumping, the customer and management have to be in constant communication regarding order handing. Neglecting any form of internal communication within management and leaving the customer out of the conversation leads to failure. Logistics companies like Dynamic World have to ensure that the employees are loyal in regards to handling any customer order as this will facilitate a smooth order process. There must be guidelines that ensure healthy employee competition to make customer satisfaction the primary goal (Jones, 2017). Employees have to be trained to ensure cohesion within the working environment and create a constant connection with their desired customers. Therefore, improving any measurement system, there has to be client focus in place to ensure that the existing customer relationship management platform takes care of both parties’ needs. This is because the customer focuses on transparency of tracking their orders to the delivery point and need to be alerted of any changes.
- How would you respond to David’s final question: What should a world-class
measurement system look like?
An effective measurement system should focus on a couple of items, and key among them are
When we talk about order accuracy, we mean the number of orders delivered to the customer at a specific amount of time without any issues arising along the way. Order accuracy is supported by other factors like shipping time and the shipping process security (Clifford, 2011). A measurement system that has placed order accuracy as a critical factor for success measurement aims to make the clients happy. What it means is that with more order accuracy, there will be a high return of customers.
Frequency of shipments
An efficient measurement system also needs to focus on the frequency of shipmen performed over time and determine whether the frequency tallies with the number of orders processed. In this analysis, the industry player will identify what key areas are causing the high cost of the shipping frequency does not tally with the number of orders processed. Shipment frequency is also affected by the quality of services along the order processing journey at the warehouse level (In Lambert, 2014). This means that evaluating the frequency of shipment and other factors should be included, like the specific season, whether peak or off-pea,d to make a proper conclusion on what process part is ailing. Breaking down the process further into the specific products shipped and to what regions were the products shipped to will also give us better knowledge in understanding shipping frequency
Inventory to sales ratio
The essence of a measurement system that looks into the inventory versus sales ratio is that this crucial performance index can tell the firm what the actual quantity sold is. Understanding the existing stock sold versus the current stock at hand enables the business owner to plan for any eventualities that might arise along the way. Including inventory to sale ratio into the measurement system lets the firm manage the business stability within the prevailing business environment (Dehdari, 2014). Depending on the ratio versus the estimated ratio targets, management can quickly market the current inventory to make more sales or continue with the same business trajectory.
Inventory turn over
Inventory turnover is also a key performance indicator when it comes to employing a world-class measuring system. Inventory turnover gives a clear picture of how much inventory has been sold over a certain period. Well, every business process is planning on achieving a high turnover rate, and the contrary means that some of the stock is turned back into revenue, causing the business to struggle in making profits (Hines, 2013). Inventory turnover reflects the sales and marketing process and its effectiveness regarding the current business needs.
A world-class measurement system needs to be time-conscious, which means that the time taken to make customer deliveries is always in check to prevent delays and customer complaints. To accurately calculate delivery time, we derive it from the number of orders shipped within a specific time divided by the number of orders (In Brudan, & KPI Institute 2012). Whenever an order takes longer to be delivered than when the order was placed, there is a broken link within the supply chain process and needs to be fixed.
- Complete the chart above with your takeaways from analyzing the DWC case.
|Cause of measurement failure||A world-class measurement system should…|
|Short-term emphasis on financial measures||A world-class measurement system needs to take stock of future financial management practices that will affect the shareholder dividends in the long last. The short-term financial goals only focus on the day to day management of the management account,s while the long-term financial measure helps us understand the financial liquidity of the firm in regards to shareholde’s and investments.|
|Tough to document unique value creation||Value creation arises when a firm can use the available resources to create a valuable productftro an existent and potential customer base. If there is consistency in profit-making and the product being sold meets the customer need, meaningt there is unique value creation.|
|Too cost-focuses – sacrifice capability building||A world-class measurement system needs te focus on developing and strengthening skills capabilities with the available human resource to ensure that the organization can survive and adapt to the dynamic business world. Focusing on more than the immediate cost implications is more valuablethano the long-term goals to be achieved.|
|Different world-view; that i,s conflicting measures||All members within the organization need to be working harmoniously to achieve the laid business goals. Thus, a world-class measurement system needs to ensure the harmony between the organizational goals and the workforce purpose.|
|Lose sight of the customer; internally focuse.d||A world-class measurement system needs to have a shareholder view kind of focus while ensuring that the customer is the satisfactor baseliney group. For Dynamic World, the customer should be the number one priority in measuring the service process success.|
|Poor understanding; no learning||The workforce within a global firm like Dynamic World needs to be well-coached and trained on the current business strategy for there to be harmonious goal actualization. A world-class measurement system needs to incorporate this harmonization into place by ensuring that all team members are working towards a common goal.|
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