KPMG Supply Chain Point of View: Customer Service Seen as 'Missed Opportunity' to Help Drive Supply Chain Profits in Tough Economic Times: KPMG's Gordon

MOUNTAIN VIEW, Calif., Nov. 29, 2011 /PRNewswire/ -- In seeking to optimize  their supply chains, companies, in industries such as technology and aerospace, mistakenly bypass customer service initiatives, a significant "missed opportunity" that becomes more critical in a difficult economy when product revenues may be down, said Grant Gordon, a Managing Director in KPMG's Silicon Valley office who focuses on supply chain optimization. 

Gordon says companies should evaluate three immediate customer service supply chain profit opportunities:

• Selling a service contract at time of sale, which can improve customer loyalty; create a value proposition for support services to customers to increase success rate of service contract sales to add revenue.
• Embracing service as a revenue generator rather than a cost center to retain customer loyalty; ensure an effective reverse logistics program within the supply chain to reduce cost of inventory.
• Protecting the installed customer base by implementing a more efficient and effective process for managing contract renewals to maintain relationships and improve service revenue.

"These customer service opportunities within the service supply chain do not require significant capital expenditures or large investments in terms of people, process, and technology," said Gordon.  "By acting on these initiatives, a company can begin to leverage its existing service supply chain to earn recurring profits throughout the life cycles of its products."

In KPMG's new white paper, Optimize your service supply chain, the audit, tax and advisory firm outlines the customer service profit opportunities that exist for companies today. Optimize your service supply chain is available at:

http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Pages/optimize-service-supply-chain.aspx

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International.") KPMG International's member firms have 138,000 professionals, including more than 7,900 partners, in 150 countries.

SOURCE KPMG LLP

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