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Why a customer-driven supply chain strategy is important

Network Business

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Phil Dowsing Creative/Flickr

Customer expectations are not consistent with what companies offer. Therefore, the companies supply chains are not allowing the fulfillment of the customers’ expectations. Wow, what an opening to this message! Are these first two sentences true? Am I just trying to get your attention? How could these first two sentences be true, as it appears I am saying that no company has set customer satisfaction standards that meet customer expectations. I admit to playing with the way I stated the first two sentences to get your attention, but the first two sentences are true, once you understand IWI WWIWI (I Want It, When and Where I Want It).

Customers’ expectations are not being met because company supply chains are not properly designed to meet these expectations in a way affordable for the company. Companies need to ask what the customers’ expectations are. Customers should be MAKING THE DECISION regarding their delivery expectations, not the company. The days of telling customers what to expect are behind us and what we now are hearing customers say is IWI WWIWI. The customers’ expectations are that your supply chain be personalized to their personal expectations. How are you going to design a supply chain that responds to all customer needs? Envision your model is to offer free shipping to major cities in one day, smaller cities in two days and to rural areas in three days. How do you reasonably deal with a customer who wants two day delivery in a rural area? The key here is not what decision is made but rather who is MAKING THE DECISION. The challenge for the company, then, is to provide the customer with enough information to make the decision that meets their expectations. The IWI WWIWI becomes IWI WWIWI OYTMTP (I Want It, When and Where I Want It, Once You Tell Me The Price). The company must be able to have a supply chain that can respond to the customer who has now MADE THE DECISION. Companies need to realize the customer is the one MAKING THE DECISION. The company’s job is too reasonably and with total transparency present the pricing to the customers so that they can MAKE THE DECISION based on their expectations. Back to the example: of the customer who wants to have two day deliver to a rural area.

I suggest an automated response similar to:

Dear Customer:

Your purchase does not meet our standard free two day shipping requirement due to your location in Statesville, NC. It is very important that we here at ABC.com meet your expectations, so allow me to offer you the following options:

  1. Standard: If we do not hear back from you by 3PM on the day of purchase, we will ship you the two items you selected via our standard free 3 day shipping option.
  2. Pick Up: If you tell us by 3PM on the day of purchase that you can pick up your two item order in Winston Salem, NC or Hickory, NC on Thursday or Friday (click the city to get directions), we can have your order available for pick up at no additional charge in two days as requested.
  3. Two Day Delivery: If we hear back from you on the day of purchase by 3PM, we will expedite your two items selected for two day deliver and charge your credit card an additional $7.95.
  4. $100 Order: Currently your order total is $37.25. If you add an additional $62.75 to your purchase by 3PM on the day of your original purchase, we will expedite your entire order and have your order to you in two days with no additional shipping fees to you.

If you decide on the Pick Up option, the Two Day Delivery option or the $100 Order option please respond to me via email.

Thank you for shopping with us and helping us understand how to best meet your expectations. If we do not hear from you by 3PM on the day of purchase we will have your order to you within three days with our standard free shipping. Our goal is to provide you the service you desire.

Alan Smith
Vice President of Personalized Customer Service
ABC.com

This is IWI WWIWI OYTMTP and why companies need to provide their customers the option of MAKING THE DECISION with respect to their expectations. Also, understanding the need to design the supply chain to enable the fulfillment of the customers personalized expectations. Offering customers the opportunity to personalize their customer service expectations and designing your supply chain to meet these personalized expectations will not only result in happy customers but also happy shareholders. Companies will not only be satisfying the customers’ expectations, but they will also avoid incurring unnecessary costs to the company.

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Jim Tompkins
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