Directorate of distance education

Customer Service Strategy 
Customer service strategy should be based on two things: the 
overall customer volume and profitability, and understanding, what 
customers really want. Should the company aim for different service levels 
depending on customer importance? Tailoring customer service strategy 
to deliver the best cost/service performance by customer segment can 
have a high yield.
The final decision concerns the supply chain network, factories, 
warehouses, production equipment, order desks, and service centers. 
Location, size, and mission of these assets have a major impact on 
performance. Depending on business size, customer service requirements, 

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tax advantages, supplier base, labor cost companies can choose among: 
global, regional, or country manufacturing model. The company can chose 
different models depending on the type of demand for their products. 
High volume products can be produced in low cost countries for a global 
demand. 
Another option is also with use of different “in market” 
postponement strategies. This means that the standard product is 
produced in a low cost production center but final configuration and 
packing are done at distribution point, close to customer. Another aspect 
is the product life cycle. In the beginning of the life cycle a global model 
can be used to develop manufacturing processes, later on a regional model 
should be used to improve customer service.
Key strategy 
building blocks
Strengths
Weaknesses
Manufacturing 
strategy
➢ Manufacturing strategy 
make to order is defined 
and it is used as recom-
mended in literature.
➢ Decupling points have 
been mapped and docu-
mented.
➢ Strategies for further opti-
mization of lead time are 
not clearly defined.
Channel Strategy
➢ Channel Strategy is de-
fined and documented, 
direct distribution is used 
for customized products 
and indirect distribution 
channel for standard prod-
ucts.
➢ It is systematically re-
viewed.
➢ Strategy is focused mainly 
on European markets and 
must be deployed to Glob-
al markets where future 
growth is expected.
Outsourcing 
strategy
➢ Outsourcing strategy is for 
machined parts is defined, 
depending on volume and 
suppliers competences.
➢ Outsourcing strategy for 
other processes and activi-
ties is not clearly defined. 

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Customer service 
strategy
➢ Clear overall service level 
is defined as well as specif-
ic service offering for key 
accounts.
➢ Customer service strategy 
is not clearly documented. 
➢ Service levels according to 
customer importance are 
not defined.
Asset network
➢ Warehouse consolidation 
strategy for Europe is de-
fined.
➢ Asset network strategy is 
not documented in terms 
of regional, global or local 
manufacturing facilities, 
order desks, production 
equipment.