Systematic approach to servlce

By Jerry L. Marchbanks CBM Systems Company, lnc. San Antonio. Tx.

TN VIRTUALLY every industry the Lsituation is the same: business is tougher. There are more competitive manufacturing and distribution channels. Markets are tighter, and collection risks are higher.

The typical business is reactive, and the reaction is to "overcome competitive pressures." There are several possible reactions: o Reaction - Price competitively

Result - Lower margins o Reaction - Stock broader

Result - Higher capital costs o Reaction - Specialize, stock deeper

Result - Higher capital costs o Reaction - Expand sales program

Result - Higher selling costs

A smart company does not react but responds. The positive response is to add value through customer service. This response results in: o Sound inventory & buying policies e Sound manufacturing control policies o Sound pricing policies o The best service in town

Customer service is the ultimate weapon in a tough business climate. Commonly, companies which deliver a service attitude can charge up to ll%o morc than a competitor and still be viewed as offering more value.

But providing "good" service is not a motivational issue, although a positive attitude helps. The goal is to use the most productive means possible to service the customer. In this framework, service requires far more than just responding to problems; it is a business concept that involves marketing, engineering, sales, production, delivery and follow up-in essence, every aspect of the customer relationship, even before he becomes a customer.

Effective customer service requires an infrastructure to support it, and that is the role of information systems. A significant part of providing customer service is providing information.

In the building products industry, the trend is toward product standardization so that economies of scale can be achieved. Yet, building products' variability in design and structure imposes restrictions on customer service. The customer expects a custom product, especially in higher end construction projects. For the building material supplier who wishes to serve this market, it is critical that flexible tools are available to quote and deliver highly variable products.

Information systems typically need standardization in form and content and do not easily provide for custom specification ofproducts. The need is for the ability to service the customer by quoting, accepting orders and delivering "confirmed" products. A product "configurator" can meet this need and is flexible in its form. It can allow for simply selecting options. It can be expanded to allow for speciffing dimensions or other functional aspects of a product. In its ultimate form, it can allow for product design using "CAD" or other graphical tools.

Palm City Millwork, Palm City, Fl., uses an option-based configurator that allows for specifying door and frame configurations for various sizes. In addition, various hanging hardware, boring and other options can also be specified. The system allows for build-up of costs and prices so that quotes can be developed quickly and accurately.

Frank Carr, Palm City Millwork president and owner, contends that quick, accurate quoting plus the ability to produce custom products to specification has helped provide the competitive edge that enables good customer service and its resulting business growth.

Donald Dean & Sons, Montrose, Pa-, manufactures kitchen cabinet doors, which vary in many ways. The quote, order and manufacturing system must accommodate this variability. Variations include style, dimension (ength, width, thickness), species, grain, pattern, direction, lip profile, and stile and rail configuration.

Each variable has restrictions and rules that must be considered when the order is taken. Yet product configuration is not the only issue. Owner Bill Dean provides a higher level of customer service by offering not just products, but responsive delivery of those products.

Story at a Glance

Information systems help provide a solid foundation for great customer sewice.

To accommodate this "quick turn" delivery option, the configured products must feed directly to a plant schedule that optimizes cutting and assembly. The system has been designed to translate product configuration for an order to create stile, rail, panel and assembly schedules that optimize each piece dimensionally. The assembly schedule is then integrated with the shipping schedule so that "quick rurn" deliveries are possible.

Building a customer service infrastructure allows companies to lead, not react to industry trends. And to discover that customer service is valuable before, during and after the sale.