May 29, 2022

INTRODUCTION TO CUSTOMER CARE NOTES – Click to view IDENTIFYING CUSTOMERS NEED NOTES – Click to view HANDLING DIFFICULT SITUATIONS NOTES – Click to view COMMUNICATION SKILLS NOTES – Click to view TRANSACTIONAL ANALYSIS NOTES – Click to view PROBLEM SOLVING AND HANDLING CUSTOMER COMPLAINTS NOTES – Click to view SEQUENCE FOR HANDLING DIFFICULT SITUATIONS  NOTES – Click to view CUSTOMER RETENTION AND EARNING LOYALTY NOTES – Click to view BEHAVIOR VERSATILITY NOTES – Click to view HANDLING OPPORTUNITIES NOTES – Click to view

6.1 Introduction Ethics are moral principle and values which govern our beliefs, actions and decisions. They are the rule or guidance of conduct by which we aim to live. Every profession issues its ethical codes and the integrity of any profession is maintained by adherence to their code ethics. 6.2 Ethical principles The Chartered Institute of Purchasing and the National Association of Purchasing

5.1 Elements of a Physical Distribution Physical distribution is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution takes place within numerous wholesaling and retailing distribution channels, and includes such important decision areas as: Customer service, Inventory control, Materials handling, Protective packaging, Order procession, Transportation, Warehouse site selection, and warehousing. Physical distribution is part of a larger process called “distribution,” which includes wholesale and retail marketing, as well the physical movement of products. By storing goods in convenient locations for shipment to wholesalers and retailers, and by creating fast, reliable means of moving the goods, business owners can help assure continued success in a rapidly changing, competitive global market. The importance of physical distribution is also based on its relevance to customer satisfaction.

4.1 Introduction Materials held by the organization in its stores or otherwise constitute its stock. In the ideal would stockholding would not be necessary. Demand and supply would be synchronized and materials would flow o the point of use at a rate matching the speed of consumption. This is however not the case in the real world 4.2 Reasons for Holding Stock Delivery cannot be exactly matched with usage day by day Economies associates with buying or manufacturing in large quantities more than offset the cost of storage Operational risks require the holding of stock to guard against breakdown on programme changes For work in progress where a completely balanced production flow is impracticable For finished goods where the holding of a buffer stock between production and the customer is desirable Owing to fluctuations is the price of a commodity it is desirable to acquire stocks when prices are low. In order that materials may appreciate in value through storage e.g. wine, coffee etc. In order that customers may be attracted by a range of products from which to select. The weight given to each of these factors depends upon the type of organization and the approach to stock control will naturally be influenced by the nature of the firm’s activity. In order to adequately maintain its stock a firm must maintain stock records. Role played by Stock Records To indicate the amount of stock of any item at any time without it being necessary for the stock to be counted physically. To establish a link between the physical stock and the stores accounts. All receipts and issues of stock cause adjustments to the stores accounts To provide a means of provisioning i.e. determining how much should be ordered to maintain stock at the required level. To supply information for stock taking, i.e matching records with physical stocks for control. to provide a method of informing stores staff of the location of goods in the stores to serve the purpose of a price list where unit prices are recorded Definition of Inventories/Stocks Production inventories- raw materials, parts and components which enter the firm’s product in the production process. MRO inventories- maintenance repair and operating supplies which are used in the production process but which do not become part of the product e.g. lubricants In-process inventories- semi finished products found at various stages of the production operation  Finished goods inventories- completed goods ready for shipment. Stock/Inventory Analysis This is the process of determination and classification of all that is held in stock by the firm. Sound inventory management requires the development of a complete inventory catalogue followed by a thorough ABC analysis Inventory Catalog An inventory catalog is some form of classification of inventory items in some type of categories the most common category is the function of the items. For an inventory catalog to be prepared all inventory items have to be completely described , identified by the manufacturers part number and cross- indexed by users identification number if necessary. Inventory catalogs are very useful in: Serving a medium of communication by enabling staff to tell which items are carried in the inventory, whether interchangeable items are carried in the inventory for missing items. etc Acting as an inventory control tool through reduction of duplicate records for identified parts. 4.3 ABC Analysis: The 80-20 Concept ABC analysis is also called Pareto analysis after Vilfredo Pareto an Italian economist who developed the concept during the early 20th century. Several studies made of large corporations have shown that 80% of all items carried in the inventory constitute 20% of the total investment while 20%of inventory items constitute 80 of total investment. In practice an ABC analysis can be made on the basis of either the average inventory investment in each item or the arrival shilling usage of each item. Each item value is expressed as a percentage of the total inventory investment. Each item can be the fitted on the three classifications A, B, and C depending on the items percentage investments over the total inventory investment. The value of such an analysis so to provide a sound basis on which allocate time and personnel with respect to procurement management and the refinement of control over the individual inventory items. Clearly no manager wants to spent 75% of his time on class C low-value items and spend 25% of his time on class A high-value items  An additional classification dependant on criticalness of each item can be added to the ABC system. This classification is on a three-point scale; 1- critical, 2 medium, 3 non critical. Thus an item can be A1, A2, or A3 etc

3.1 Introduction A source is a place from which something comes from or is obtained from. Sourcing is therefore a process of determination and selection of places/firms from with to acquire materials or services. 3. 2 Sourcing levels Strategic sourcing This is the process of creating a vale adding (or optional) mix of supply relationships to provide a competitive advantage. It is concerned with to-level, long term decisions relating to high-profit, high-supply-risk strategic items and low-profit, highsupply-risk both neck items. It is concerned with promotion of long-term policies relating to core competences, strategic make or buy decisions, partnerships sourcing, purchase of capital equipments, ethical issues etc. Tactical and operational sourcing It is concerned with lower level decisions to high-profit, low-risk non-critical items. It also involves short term adaptive decisions as to how and from where specific supplier requirements are to be met. As such suggestions may be made to top management regarding temporary tactical deviations from strategic decisions e.g. in light of supplier failure or reversed conditions of stock. 3.3 Sourcing Considerations 1. Sourcing information 2. Sourcing strategies, tactics and sourcing decisions Sourcing Information Sourcing information relates to: Analysis of market conditions Directives Suppliers sources Suppliers assessment Supplier performance rating. Analysis of Market Conditions Why is this necessary? Helps in forecasting the long term demand of products. Assist in forecasting price trends of terms. Indicates what alternative goods and supply sources are available.  Provides guidance on security of supply sources. Sources of information relating to market conditions Primary data i.e. field research, company data e.g. on market shares etc. Secondary data i.e. statistical data and report issued by external organization e.g. government sources such as census and gazette notices, non-government sources such as professional organizations e.g. KAM Directives A directive is a general instruction. Typical directives relating to sourcing are to be issued by central and local governments, the European Union and companies. Mainly such directives are issued with regard to; Health and safety issues Establishment of common procedures Competition Equal opportunities for all EU suppliers Companies top management also issues directives regarding inter company relations, reciprocal trading, etc for strategic reasons or otherwise. Supply sources Sources of information relating to supply sources are: catalogues, trade directories, database, sales persons, exhibitions, trade journals, yellow pages, informal exchange of information between buyers, information provided by prospective suppliers etc. Buyers may require prospective supplier’s fill questionnaires with the following subheadings to gain information from them: General-firm names, address, turnover etc Personnel-name of directors and responsibilities, no of workers and shop area covered experience-products or services offered, previous orders placed, etc facilities-major plants and equipments, communications facilities etc Supplier assessment and appraisal Supplier appraisal may arise when: A prospective vendor applies to be placed on the buyers approved list Buyers wishes to assure him/herself that a supplier can meet requirements reliably Items to be purchased are of critical importance It is intended to adopt a policy of single sourcing based on partnership purchasing Supplier appraisal can be undertaken through: Desk research- this uses published or unpublished data already existing e.g. company reports, balance sheet reports, strike records etc Field research- this will help additional data on technical production, management capacities etc. Field research is undertaken during visits to suppliers in order to ensure that important questions are not overlooked. A check list is invaluable during supplier visits; the check list should include the following Personal attitudes:- Atmosphere of harmony among good workers; Degree of interest to customer service; Degree of energy displayed in getting work done; Use of man power- economical or extravagant. Adequacy and ease of production equipment:- Modern or antiquated; Well care for by operators or neglected; Sufficient capacity to produce desired quantities; Technology know how of supervisory personnel. Means of controlling quality:- Frequency of inspection during the product cycle; Employment of such techniques as statistical quality control House keeping:- Is the plant orderly and clean Competence of technical staff:- Knowledge of latest materials, tools and processes related to products and anticipated developments in their industry Competence of management Supplier Performance Rating The purpose supplier performance rating is to: Evaluate performance with respect to such factors as price, quality delivery service etc Provide objective information on which judgment can be based relating to source selection. Assist the buyer with information on areas where the supplier can improve. Types of rating 1. Subjective rating Subjective ratings have to do with the buyer’s personal impression of the supplier. Subjective ratings have a tendency to be biased since they may be based on irrelevant impression or estimate of the supplier. 2. Quantitative rating These have to do with actual data analysis. It aims to remedy deficiencies of subjective rating. Categories under which suppliers are assessed and ranked Quality- Declared/undeclared Non-conformance, Responsiveness, Administration Delivery- Areas, Promise credibility, Early delivery, Responsiveness. Commercial- Cost reduction, Competitiveness, Risks sharing Administration Technologies- Process control, Computing links, Capital investment, Production capacity Management-Task, People, Delegated authority. A vendor-rating form is designed with the above categories. The categories may be ranked out of a possible maximum of 20 to then added up to 100 or any other means as the firm may choose. 3.4 Sourcing Strategies and Tactics and Sourcing Decisions The Supplier Base This relates to the range, location and characteristic of vendors from whom the external supply requirements of an undertaking are obtained. Factors influencing the supply base of an enterprise include The core competences of an enterprise Make, buy, outsourcing and subcontracting decisions Single, multiple and partnership sourcing decision Tiering International and global sourcing Counter trade inter-company trading and reciprocal trade Miscellaneous factor, large, small and local supplies 1. Core competences Core competences are concerned with identifying particular strengths that give a firm an advantage over competitors and areas of weakness that need to be avoided. Finding out what the firm does best and enterprising to others needed goods and services that they do best is the key to strategic make or buy decisions. 2. Make, buy, outsourcing and subcontracting decisions Make or buy strategies and tactics Make

2.0 Introduction A typical purchasing cycle consists of the following steps: 1. Recognition of the need 2. Definition and description of the need 3. Transmission of the need 4. Receipt and inspection 5. Invoice audit and completion of the order 2.1 Recognition of the Need A purchase need may originate from the firm’s user departments or the inventory control section. The notification of the need is usually in two methods. Standard purchase requisitions. Materials requirement planning (MRP) schedule. Standard Purchase Requisition This is an internal document comparable to the purchase order which is an external document. Most firms have standard purchase requisition which is serially numbered and produced in duplicate. The user department retains one copy while the other is sent to he purchasing dept. A requisition has the following information; Description of the materials, quantity, and date required, estimated unit cost, operating account to be charged, date and authorized signature. Most big firms have logged the necessary information on the firm’s mainframe or it’s Local Area Network. Thus, requisitions can be produced electronically by scanning for the necessary data. A computer maintained inventory monitoring system automatically produces or generates requisition when the inventory level has reached reorder point. Materials Requirement Planning (MRP) Schedule. When a design engineer completes the design part he/she produces an engineering bill of materials (BOM)- a list of materials and quantity of each required to manufacture the item. In firms using computerized inventory planning systems, the engineering bills of material is reconfigured into a structured multi level bill of materials which is used to determine the specific material requirements for the item at a specific time period. This schedule is then sent to purchasing for direct use in obtaining the required materials. The schedule eliminates the necessity of preparing numerous purchases requisitions. 2.2 Definitions and Description of the Need Purchase description serves a number of purposes among them to; Communicate to the buyer in the purchasing department what to buy. Communicate to the prospective supplier what is required. Serve as the heart of the resulting purchase order. Establish the standard against which inspections test and quantity checks are made. Purchase description fall into two broad categories Detailed specification Other purchase descriptions 1. Detailed Specification This is description that tells the seller what the buyer needs to buy in exact terms. Design and engineering desires features of design excellence but which may contribute to less sales potential, operation may on the other hand favor easy to work on design that have low unit cost. It is estimated that 75-80% avoidable total cost may be controlled at design stage by reconciling the need of engineering, operations, marketing and purchasing in order to come up with balanced or optimal specifications that solve the interdepartmental conflict of interest. To develop specifications that properly balance product quality characteristics, and product cost, four approaches can be used: Early Purchasing Involvement (EPI) and Early Suppler Involvement (ESI) Formal committee approach, representatives come from all the functional area. No design becomes final without the committee approval The informal approach emphasizes the concept of buyer to challenge requests. Management urges designers to seek continual advice from buyers. Person to person communications and co-operation between designers and individual buyers is encouraged. The purchasing co-ordinate approach– one or more positions are created in the purchasing department usually called materials engineers to serve in a liaison capacity with the designers department.. The approach is highly structured, expensive but effective. Specification Requirements To meet the need of all departments, specification must satisfy many requirements; Design and marketing requirements for functional characteristics and other properties e.g. appearance. Manufacturing requirement for workability, and produceability with the specifications. Stores requirements to use, store and receive the materials economically. Inspections requirements to test materials with compliance with the specifications Purchasing and supply management requirement to procure materials without difficulty and with adequate competition from reliable sources of supply. Productions control-purchasing requirements to substitute materials when necessary. The firm’s requirements for suitable quality at lowest overall cost. The firm’s requirements to use commercial and industrial standard materials whenever possible and to establish company standard in all other cases. Note: precision and clarity is of most importance when writing specifications Types of Detailed Specifications There are three types of detailed specifications. Commercial standards– this is complete description of an item standardized. Advantages of Commercial standards Description can be set forth accurately and easily Highly competitive and readily available at reasonable prices. No need for specific sale commitments before productions. Contribute to simplification of design, purchasing procedure, inventory management and cost reduction. Design specifications– for materials that are not covered by standard specification, firms prepare their own specifications. The cost of inspection to assure compliance with the company-made specifications can be high. To avoid ambiguity, such specifications are accompanied by engineering drawings, which provides a more precise and accurate description, permit wide range of competition (what is wanted can be easily communicated to a wide range of suppliers) and clearly establishes the standards of inspection. Materials and method of manufacture specifications– in this method the supplier is instructed precisely as to the specific materials to be used and low they are to be processed. The buyer assumes full responsibility for the performance. It is common in the defense industry. Advantages Widest competition possible thus good pricing assured. Since product is non-standard, anti-discriminatory barrier is removed. Disadvantages Puts a lot of responsibility on buyer. Specifications of this type are expensive and difficult to prepare. Inspection is generally very expensive Other Purchase Descriptions Performance specifications- instead of describing an item by its design performance specification, it describes in words and quantitatively what the item is required to do. The primary advantage of the kind of specification is that it assures obtaining the precise desired performance and ease of preparing specifications. it also assures inclusion of all applicable new development, competition also ensures quality and fair prices. Function and fit specification- with this approach the function and the way the item is going to fit in the