LG Case Study

April 2, 2018 | Author: Shipra Singh | Category: Enterprise Resource Planning, Computing, Technology, Business, Manufacturing And Engineering


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201 0LGCSNet Success story of the web-based system for service partners " We knew that we had to absolutely be at the top of customer satisfaction if we wanted to be successful.," Daya Prakash, CIO, LG Electronics India Pvt. Ltd. ICT Integration in Business Jaypee Business School 12/16/2010 com Industry -Consumer Electronics Qualitative Benefits . maintain efficiency & operate on a global basis. It set up its manufacturing hub in India in April 1998 with a turnover of 31 million USD.Call Monitoring and Closure. they typically deploy manufacturing facilities and sales offices worldwide. faced such a challenge. . LGEIL. . microwave oven. .lg. .Direct contact with the customers through happy calling to get the feedback. a wholly-owned subsidiary of LG Electronics.Monitoring the daily issues and immediately taken action on it and resolve. LG INFRASTRUCTURE Currently in 2010. To succeed in the CE industry. companies must innovate continually.SUCCEED IN THE CONSUMER ELECTRONICS INDUSTRY AT A GLANCE Company Name -LG -India -www.Improvement in ASC Performance. Indian and abroad in 2004 domestic plant in Pune was setup. it can complicate business processes. . dealing in a variety of products like washing machine.Service bulletin . But with increase in demand. mobile phones and so on. South Korea.Call Tracking and Open / Pending complaints reports. to talk to trading partners. Although. .Improvement in Productivity and Quality of Service. The communication among the various sales offices with their parent office is indeed very crucial in order to work both.Update daily call status and action taken accordingly. it has 48 branch offices across 9 regions across the country. LG. . set up base 12 years ago. in order to serve the local customers more efficiently. 2300 direct distributors and then sub 2 .Reduce response time due to regular call monitoring. In order to do so. . television. During the years 1998-2004 demand increased manifold and earlier third party manufacturing base was used by the organization which had various tax and duty benefits. Each branch is required office to reach customers directly through remote area offices area office in charge. effectively and efficiently.Daily call registration and call assign to engineers. this type of expansion is crucial in gaining a substantial market share. LG incorporates it through e-management system that integrates various business functions.10-20% increased accuracy for spare inventory management at ASC .2. . .Quantitative Benefits .533 sites North India. As the demand is growing the challenge is how to give unique perspective to customers in order to provide more than value for money. IT@ LG The result of the same is Customer Satisfaction. Organizations today need to have their ERP foundations in place. LGCSNet sites Call center. With Direct Service Centres (30 in non-metro and tier 2 cities) the aim is to monitor the whole experience and to ensure that the customers are exposed to better service experience. LG owned shops were established. and it was not organized in ways that enabled employees to find it.100% of Spares parts orders are being routed through System only.5 lakh calls a month. Anytime. approx 30% customisation.907 sites Server host.Effective Spare Part Inventory Management amounting to an inventory worth Rs 14 crores.5 Lac (approx)calls in a month with absolute transparency.SOFTCELLNET LGCSNet Country Map In these changing scenarios it is of paramount importance for the organizations is to act fast with the right decisions. All the modules of the ERP Package were configured wither prior customisation to a few i. .System used by over 1000 ASC across product categories. Thus. . The aim has been to provide a unique experience to customers. in order to educate the customers on core technical products. it would be communicated manually.585 sites South India.Over 90% calls are being registered through LGCSNet. anyone had any information to share. making about 1.e. dealers’ three distribution centres in place. 8748 service engineers 3 . With this idea in place. PROVIDING EMPLOYEES WITH NEEDED INFORMATION There was plenty of substantial information at too many places. To support VOC and 211 program by 120 Telecallers. helping them to rightly appreciate the product and better understand the technicalities related to it. This resulted in redundancies and no single ownership of information.com). LGEIL has several Authorised Service Center’s (ASC) spread across India. ”To survive in the fierce and stiff competition.lgcsnet. The second time ABC engineer visits the same customer. the real time update was required for efficient servicing of the customers. Every ASC was given the access to the Customer Service Online Support network (www. consistent and convenient to the customer. THE NEED FOR REAL-TIME INFORMATION It is very difficult for any organization to attract 100% potential customers and engage their demand.MD. XYZ engineer visits a customer & if he behaves courteously. wherein they could enter their demand and/or other relevant details concerning customer service. The moment of truth had to be pleasant. the moment of truth is pleasant. if an organization has a satisfied customer then there is a huge scope of repeat purchase by customers and new products can be offered through cross selling etc. management of speed with right decision ahead of competitors is critical. But. assess business performance. Every ASC has a demand requirement for LG products as per the consumption by the customer. and identify ways of benefiting from economies of scale across geographically widespread operations. For instance.and 1124 service centers were too widespread to be collaborated with the help of current ERP package. LGEIL LGCSNET 4 . the information regarding which customer was visited by which engineer is recorded. Thus. Their demand requirement has to be very transparent in order to avoid building up of inventory and/or excess lead time. a company cannot leverage advantages in product performance and adaptability unless it has the availability of real-time information to determine costs. I am of the opinion that IT dept plays a crucial role in leading the company into the new height of execution with enhanced speed by providing delicate decision making tools and processes”. This is inconvenient for the customer as s/he shall have to repeat about the encounter at the first time service. Therefore. Thus. Within Convenient 1 Hour time With this platform there was a 50-60% increase in sales potential. The data was gathered from the CSNet module & subsequently. There were three initiatives associated with this system. LGCSNet was a control mechanism that lay down the guidelines for behaviour. service efficiency and communication skills of service engineers. Prakash. According to Mr. This also enabled them to gain control over the service levels of the service engineers spread across the country. Also.The B2B portal was meant to help LGEIL's service franchisees (ASCs) maintain spare part stock.SMS Service. even if they were located in the backwaters. With reliable and good service quality LG provided a unique customer solution where in ERP system service centers infrastructure challenge was catered by a platform accessed by the 100 service centers and integrated through LG. Service Engineer visit in 1 Day 1. 211 & Voice of Customer. fed into the CRM module of the ERP package. SMS Service Customer calls call center SMS sent to customer with job code SMS sent to service engineer slot assigning him of that job Simultaneous SMS to branch office 211 2. the LG Market depended on the service center’s attitude towards the customer. Thus. Long term benefits are being sought after with it. it has been of a paramount importance to the company and its business. it updated the management with the real-time requirements/ information of the ASCs. Call Back to Customer in 2 hours 1. 5 . The LGCSNet was launched with a campaign called “Customer Delight”.
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