The Customer is #1

October 3rd, 2006 at 10:15am David Bush - Iasta

Over the summer, Supply Chain Manufacturing Review ran a lengthy article entitled The Intimate Supply Chain that indicates that the next stage of supply chain advancement, after all of the excess inventory and nonproductive processes have been removed, will be the creation of “intimate supply chains” that create value for customers at every touch point.

The article states that the intimacy will be gained through the following integrated actions:

1. developing a portfolio of customer segments
2. understanding the needs and opportunities of each segment
3. fashioning customized value propositions that deliver a complete buying solution, and
4. using technology, tools, and metrics to build and maintain a supply network focused on the customer

which will lead to a customer-centered supply chain.

What I don’t get, after reading it again, is why this is the “next stage” of supply chain advancement, considering this is nothing more than sound business processes which have been around for a while. After all, it’s mostly just common sense. If you want to do well, you have to attract customers and keep them. You attract them by offering them a valuable service. You do that by listening to them and understanding their needs. You keep them by providing them good service. You continue to do so by measuring yourself and improving at every opportunity. And hasn’t the maxim “the customer’s always right” been around for a long time?

After all, when I listen to my customers and build the solutions they want, everyone wins. You dont need to be a Harvard MBA to figure out that aligned goals equal success for all.

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Entry Filed under: General