Consumer-Focused Supply Chain and Logistics – How & Why?

The thought that runs behind consumer-focussed supply chain management and logistics is this – it is not the tools that support an improved customer-focused logistics experience – it is the relationship.

The supply chain is the storage and transport of goods and services, and related information from the point of origin to the point of consumption. The entire process starts with planning, implementation, and management of all that is involved in this movement.

But why should the focus here be on consumers?

Various studies support the argument that customer satisfaction culminates in greater profits in the long run. Building a solid and loyal customer base leads to reduced costs and long-term revenues. Also, it is easier and less costly to maintain satisfied customers than to acquire new ones. Research suggests, 67% of supply chain and logistics companies are employing new techniques to increase customer service throughout the length of the order fulfillment process.

Let us briefly look into some ways in which the entire supply chain be focused on the needs of the customer.

1. Improve communication with your customers – Communication here should be a free and open two-way process between the customer and the supplier. Based on their feedback, sort of questions or problems faced, the logistics and supply chain companies can solve design, fulfillment, or quality-related issues that are sticking out in their current operations.

2. Knowing exactly what the consumer wants and incorporating that for a seamless experience – What do the customers need? Low cost? Flexibility between choosing a mini truck for rent or tempos on hire? Most efficient and hassle-free household shifting services? Technological innovation? Speed to market? A clean interface? A complete understanding of consumer needs and strategic objectives is a prerequisite for setting operational strategies in a company or in the supply chain. So, the more information one has about its customer's requirements, the less inventory will be needed in the supply chain.

3. Building a proactive supply chain – This is needed for anticipating problems or possible issues that might arise so that the potential causes can be fixed before such things arise.

4. Building an effective strategy for customer service– This involves making use of algorithms and data-based information to devise consumer-focused strategies, but not those resulting in increased costs.

Once the supply chain becomes focussed on the needs of the consumer, the tools and technologies of supply chain management can be employed for a seamless experience. The final thing to remember is that a good customer service experience might be shared by the consumer but a bad customer experience has more potential to go viral. More reason to streamline supply chain and logistics strategies to be consumer-driven, which have equally strong potential to drive returns in the long term.

Consumer-Focused Supply Chain and Logistics – How & Why?

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