This essay is about the impacts of “customer” element in supply chain management. Supply Chain Management’s goal is “to meet customer needs, better than competitors. Success depends on building processes that can design, make, and deliver the innovative, high-quality, low-cost products and services that customers demand.” (Fawcett, Ellram, & Ogden, 2007). The customer, as always, is king of every business. In generally, we don’t have any business without customers. Every company is trying to ensure that whatever they are doing is correctly “customer focused”. To creating values which meet the customer’s needs is the most important task for supply chain management. There are five basic areas of customer value: quality, cost, flexibility, delivery,
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It drives consumer behaviour which is the most important factor in achieving long-term success. Most customer put quality in the top of their list to buy a product and service. There are many definition of quality in use. Many people define quality to specifications, its functions compared to other products and services. The more features in them would be increase the quality of its. However, according to Fawcett, Ellram, and Ogden (2007), “the real measure of quality is whether or not a product or service lives up to customer expectations.” Moreover, in sourcing and operations, the supply chain management use the defect rate to measure the quality of a product. Most companies suggest a limited number of defective products per million – only 3 out of million. To achieve this target of quality, products must be designed with greater research and development result. This information could be collected by doing surveys, review customer feedback, and database. The customer expectation would be researched by company on each different customer segment. We should understand the different types of customers you deal with and tailor your approach to them. This information could be collected by doing surveys, review customer feedback, and database. By using this information, the company should able to control more than eighty percent of quality problem. Therefore, to please the customer, the supply chain must be able to manage its product …show more content…
For example, a mobile phone now is not only required call, text functions but also able to take pictures, listen to music, have touch screen, and browsing Internet through 3G network. Apple and Samsung are the leaders in this industry in the last 10 years due to its flexibility in adapt the new technologies. On the other hand, many big brands like Nokia or Sony have lost its shares in mobile phone’s market because of their slow reactions with changing. Customer now are willing to pay more to have a device with all the latest technologies before their friends or family. A company which fail to change will be eliminated and no one will able to afford losing market shares nowadays. Homburg, Krohmer, Cannon, and Kiedasch (2002) found a positive impact of perceived flexibility of the firm on end-user satisfaction. Therefore, the supply chain system have to perform well in sourcing stage. Collecting data, update with the latest technologies, good customer feedback system or investing more in research and development sector would be some ideas for the supply chain leader to improve their
It drives consumer behaviour which is the most important factor in achieving long-term success. Most customer put quality in the top of their list to buy a product and service. There are many definition of quality in use. Many people define quality to specifications, its functions compared to other products and services. The more features in them would be increase the quality of its. However, according to Fawcett, Ellram, and Ogden (2007), “the real measure of quality is whether or not a product or service lives up to customer expectations.” Moreover, in sourcing and operations, the supply chain management use the defect rate to measure the quality of a product. Most companies suggest a limited number of defective products per million – only 3 out of million. To achieve this target of quality, products must be designed with greater research and development result. This information could be collected by doing surveys, review customer feedback, and database. The customer expectation would be researched by company on each different customer segment. We should understand the different types of customers you deal with and tailor your approach to them. This information could be collected by doing surveys, review customer feedback, and database. By using this information, the company should able to control more than eighty percent of quality problem. Therefore, to please the customer, the supply chain must be able to manage its product …show more content…
For example, a mobile phone now is not only required call, text functions but also able to take pictures, listen to music, have touch screen, and browsing Internet through 3G network. Apple and Samsung are the leaders in this industry in the last 10 years due to its flexibility in adapt the new technologies. On the other hand, many big brands like Nokia or Sony have lost its shares in mobile phone’s market because of their slow reactions with changing. Customer now are willing to pay more to have a device with all the latest technologies before their friends or family. A company which fail to change will be eliminated and no one will able to afford losing market shares nowadays. Homburg, Krohmer, Cannon, and Kiedasch (2002) found a positive impact of perceived flexibility of the firm on end-user satisfaction. Therefore, the supply chain system have to perform well in sourcing stage. Collecting data, update with the latest technologies, good customer feedback system or investing more in research and development sector would be some ideas for the supply chain leader to improve their