Consumer Customer Service Survey
We were asked by a major worldwide food company to develop
a logistics strategy for one of its frozen food lines
sold to restaurants. This company was experiencing nationwide
competitive pressure from other suppliers who were providing
superior customer service and distribution services in
the form of lower laid down cost at the customer's warehouse.
Since distribution costs comprised over 30% of the landed
product price, logistics strategy was an important dimension
in overall product marketing strategy.
We conducted a series of interviews, data analysis, on?site
reviews, competitive interviews, and customer surveys.
On the basis of this diagnostic review of the company's
policies and practices, we developed a strategy geared
customer service function in operations, thus relieving
the sales force from assuming this role
negotiation activities with irregular route common carriers,
contract carriers, and rail carriers
forecasting, order entry and order fulfillment, inventory
management, and production planning systems
The company received benefits from the study by reducing
"lost" freight charges, increasing order fill
rates, and justifying a customer service function positioned
at the division rather than sales level. Other benefits
were received by lowering customer freight costs through
negotiating railcar supply and lower freight rate rail
contracts. The corresponding increase in sales volume
was estimated to be in the millions of dollars.
additional information, contact Pete Crosby 310 553-6837