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This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/eb038839. When citing the article, please cite: JAMES L. HESKETT, (1971), “Controlling customer logistics service”, International Journal of Physical Distribution, Vol. 1 Iss: 3, pp. 141 - 145.

Research suggests that while customer satisfaction and loyalty provide a foundation for high levels of customer lifetime value, they support a range of customer behaviors with widely varying values, characterized by mere loyalty (repeat purchase), commitment (willingness to refer others to a product or service), apostle‐like behavior (willingness to convince others to use a product or service), and ownership (willingness to recommend product or service improvements). As a result of these findings, it is of increasing importance that the small number of apostles and owners in a customer portfolio that can drive all of the profits should be identified and cultivated.

Customer logistics service may mean different things to various organizations! Heavy emphasis in one organization may be placed on having a product available at the time, at the place, and in the quantities desired. In another company, it may be desirable to preserve the relative freedom in the manner and timing with which orders can be received from customers for processing. At other times and in other organizations, management may concentrate on improving the condition of goods delivered to customers. Finally, but of vital importance in many logistics systems, the speed and dependability with which items ordered can be made available to customers may be of primary concern.

The purpose of this paper is to provide a retrospective look at the search for deep indicators that explain service performance as well as an illustrative example of this kind of work.

The work described involved constructing a complex model, using it to predict performance, and then exploring data that helped disclose even deeper indicators. Data were collected in operating units of a single organization to ensure comparability.

The primary challenges in this type of work are the availability of data and data comparability, not the availability of hypotheses or analytic techniques. Also, trust was found to be a deep indicator of performance not often identified in service management research.

The example study described requires replication within the organization studied, more sophisticated analysis, and application across service businesses. It contains numerous hypotheses requiring further validation.

The research employs a predictive model to elicit management cooperation in the search for even deeper indicators. The paper calls for care but less caution if research in service management is to be advanced more rapidly and made more relevant for practitioners.

Noteworthy shifts in availability of raw materials, component parts and products have had a profound influence on customer service levels. Changes in these levels have dramatised the importance of and concern for effective management of customer service in distribution. As a result, adjustments in business procedure and organisational structure are necessary.

Despite persistent reports in the British and Italian press that plans are afoot to construct a new Suez Canal west of the existing waterway, the Egyptian Government has denied all knowledge of them.