Shiny Glass's current order processing system handles most of the customer orders manually, although it was developed using Visual Basic for the front end and SQL (Structured Query Language) as the back end. A dozen customer service representatives (CSRs), who are not familiar with the computerized system and software, take 70% of customer orders through phone calls, faxes, or email from customers. Once orders are received, the order data is entered into a mainframe computer system, one by one. Approximately three hours after the customer order data is entered into the computer system, the data is checked for accuracy. If errors are found, a report is generated in such a way that it triggers reminder messages and "red" alerts for the sales department. Errors are commonly caused by human (e.g., CSR) error, data entry error, and miscommunication with customers. These errors can occur when the wrong informationsuch as an incorrect price, quantity, delivery schedule,Customer Service: The Ultimate Goal of Supply Chain Management 85 product codeappears on the order form without any follow-up or validation. Once an order is transmitted to the traffic department with the necessary packing and shipping instructions, it is shipped to customer locations immediately. Even though not all orders are validated, the current order processing system is believed to work moderately well because the CSR thinks certain types of errors are unavoidable under any circumstances. However, George was somewhat surprised to discover that over the past three years, his company's record showed an order accuracy of 91.5%, which is below the industry average of 95%. Order accuracy represents the ratio of the number of error-free orders over the total orders (in dollar volume) shipped to customers in a given year. More often than not, order accuracy is checked by the sales department after the customer either complains about receiving a wrong product or threatens to file a claim. In other words, customer acknowledgement of receipt of orders without complaints is considered the evidence of error-free order fulfillment. The order fulfillment process described here is crucial for customer service, but is very timeconsuming and labor intensive. As a cost center, order fulfillment and replenishment typically accounts for 50% to 65% of the sales department's personnel expenses (labor cost). While carefully reviewing the current order processing system, George also suspects that Shiny Glass's adaptation of the new Omni-channel sales strategy may have something to do with order fulfillment errors. In an effort to recapture and expand customer bases, Shiny Glass began to sell some of its popular products such as beer mugs through its own discount outlet stores, catalog and mail-order companies, grocery chains, TV home shopping networks, and e-tailers such as Amazon and Overstock.com. Each of these sales channels requires a unique way of processing orders, distributing ordered products, and billing orders and thus creates unprecedented complexity associated with different types of customers and their service needs. To make matters worse, the aforementioned multichannel sales tend to result in the proliferation of many different products intended for different channels/segments, which causes another difficulty in forecasting demand. The impaired supply chain visibility resulting from forecasting difficulties contributed to frequent stock outs of popular items, which also takes a toll on customer service. Discussion Questions 1. Do you think Shiny Glass would benefit from a new order processing system? If so, why? What is wrong with the current order processing system? 2. What is your assessment of Shiny Glass's customer service levels? If not positive, what may be the source of their current service problems? What kind of service gaps does Shiny Glass have? ptg16425222 86 Chapter 3: Customer Service: The Ultimate Goal of Supply Chain Management 3. What kind of recommendations would you make to improve Shiny Glass's supply chain operations that will eventually help improve its customer service?