When i sit through sessions on building a customer centric supply chain, i am looking for case studies on how companies have applied the concepts to drive greater value. Customercentric supply chain transformation to truly transform your supply chain into one that is focused around what the end customer needs, you need a plan that addresses a range of organizational factors, including vision, strategic intent, behavior, technology, organization, processes, and metrics. Dec 16, 2014 the supply chain customer metrics i am used to hearing discussed are often contributors to the perfect order metric orders shipped complete, on time, etc. A report from the 2017 next generation operations summit. In the case of the consumer supply chain is the customer the retailer, the shopper, or the end user. However, their biggest contribution is the latest trend of customer focused strategies. This presentation discusses some of the key results from the study and then looks at how b2b managed services helps to address the challenges faced by customer centric supply chains. It is the analysis of supply chain cost drivers by customer. Dec 15, 2015 articles are being published every day asserting that customers are becoming more empowered.
Introduction of technology that allows collaboration, realtime. That solutions strategies vary in their scale and scope and integration requirements. Melnyk defines this as a supply chain whose goals are aligned first and foremost with the needs of its customers. A large and smart enterprise cannot be run only with a good business strategy but you also need to mind your ethics. We have a very specific definition of the strategic supply chain. The problem with nintendos management and supply chain strategies, is that theyre very customer centric. Frequently i see the goal of build a customercentric strategy or. Customer centric supply chain transformation to truly transform your supply chain into one that is focused around what the end customer needs, you need a plan that addresses a range of organizational factors, including vision, strategic intent, behavior, technology, organization, processes, and metrics. Four components to ensure your transformation success. This report, supply chain responses in a consumer centric marketplace, is built on our extensive understanding of the dynamic changes taking place in the consumer market.
Sainsburys feeds its supply chain strategy with blue yonder. Pdf on jan 1, 2004, vorst and others published supply chain management. Most companies have strategic planning cycles of one to three years, but we have seen companies that literally go decades without realigning their supply chain strategy. But, businesses that take a customer centric approach do more than say they put their customers first.
Footnotes 1 lora cecere, seven thoughts to build a customercentric supply chain organization, supply chain shaman, 22 november 2015. Becoming hyper customer centric developing a digitalfirst mindset creating a supply chain fit for purpose 2 4 8 20 26 34 42 52 55 56 taking trust to the next level building a worldclass omni business key insights and takeaways about kpmg about the survey about the consumer goods forum acknowledgements. Todays logistics management requires a more customercentric supply chain strategy that takes advantage of opportunities to gain competitive advantage. As this empowerment grows, implementing a customercentric supply chain will also grow in importance.
In the evaluation and alignment of these cost differences teams can align and start to build the framework for a customer centric supply chain. Good luck aligning your supply chain with your corporate strategy. Newcomers like amazon, uber and paypal have been disruptive to many industries. Traditional companies can evolve to an intelligent supply chain that is customercentric and smart, agile, learning and serviceoriented.
Customer centric supply chain refers to all customer experience improvement initiatives embedded in the process of moving finished products from suppliers to customers. But, businesses that take a customercentric approach do more than say they put their customers first. Enhancing competitive advantages customers are crucial to any business, as without. The supply chain focused on cost and meeting the schedule.
The best supply chains are customer centric supply chains. The introduction of supply chain collaboration and alignment. Predicting the future of supply chain management is a fools game, but new findings from caps research gives a glimpse into how supply managers are preparing for tomorrow. In essence, customers want a comprehensive approach to service that encompasses guidance and a variety of capabilities at every stage along the supply chain. Its a word weve been using for ages and probably many others without really thinking too much about it but rather using it as an obvious given in business. Used well, this information can help companies optimize product offerings and, more precisely than ever, help them tailor products based exactly on what consumers want. To help current and next generation supply chain leaders meet the demands of this digital era, leadership for a networked world and the technology and entrepreneurship center at harvard, in collaboration with accenture strategy, convened the 2017 next generation operations summit. In reversing the value chain, the customer s needs are the factors that guide and drive your business activities. Supply chain synchronizing through webcentric product. Here i share my thoughts on building a customercentric supply chain strategy. It is understandable that in realworld a supply chain is much more complex than the one depicted in figure1. How customercentered is your supply chain strategy.
Supply chain management is undoubtedly one of those. Ultimately, the company had discovered the power of the customercentric supply chain. How to determine your solutions strategy with the strategy locator. Much of the excitement has focused on making inventory and product movement data transparent throughout the supply chain. And then, based on the customer centric conception, it will discuss the low price policy, cost control, loyalty card strategy, supply chain management, delivery system management and inventory management at the business unit strategy level and functional strategy level. Embarking on the customer centric journey requires work up front. Linear supply chains that sequentially hand off information are not designed to solve the complex supply chain challenges of a customer centric world that changes dynamically in real time. New markets, new customers and new supply chain problems. In this interview, he shares with us the critical role of innovative supply chain management in enabling companies to satisfy their customers.
Our customer centric framework places the customer at the heart of your supply chain. Achieving a nextgeneration supply chain didnt happen overnight for these competitors. Traditional companies can evolve to an intelligent supply chain that is customer centric and smart, agile, learning and serviceoriented. We use scjm to better understand specific customer journeys involving the supply chain that may, or may not, be generating the outcomes we desire or we believe we can improve. And in the new supply chain, the store is not only a destination for inventory, its also a source. That different solutions strategies will require different levels of customer centric organization. Reverse your value chain to be more customercentric the. Seven thoughts to build a customercentric supply chain. Sainsburys will deploy blue yonder to power its endtoend supply chain strategy on a single artificial intelligencepowered platform. In a customer centric strategy, the value chain makes choices on how to serve and respond to the customer based on costtoserve, channel and value chain strategies.
He offers courses for mba programs at business school sao paulo and is a regular contributor to seminars, conferences, and congresses. Amazon will continue to focus relentlessly on our customers. Our vision of the emerging commercial landscape relies on the insights of business experts and practitioners grappling with the changes sweeping through the supply chain. Mar 04, 2020 customercentric also known as clientcentric is a business strategy thats based on putting your customer first and at the core of your business in order to provide a positive experience and build longterm relationships. Customer centric supply management has the potential to become the most important driving force for supply management in the near future. Sainsburys feeds its supply chain strategy with blue. Why you need to switch to a customer centric supply chain. May 07, 2014 supply chain journey mapping scjm is a methodology that we have designed that is based upon the very successful customer experience journey mapping methodology cxjm.
As a result, supply chain operations need to evolve as well, to a more customer centric supply chain. Dec 07, 2012 fortunately this company had developed a customer centric attitude and included the supply chain in its transformation. As the name suggests, a customer centric supply chain is designed to focus on customers, putting their needs and experiences at the center of it. May 12, 2010 in this shift, companies must not confuse customer centric with a customer first strategy. Unlike in the past, cost was no longer the primary driver. Bowman was a terrible supplier of its line of highly seasonal lawn and garden products. Definition, best practices a definition of customer centric customer centric, in theory, is fairly selfexplanatory.
Once a company prioritizes meeting its customers expectations and becomes customer centric, the company will redesign its supply chain to satisfy the omnichannel customer. Customer centric supply chain strategy provides an approach to respond to these challenges as it strives to match supply and demand, thereby driving down costs and simultaneously improving. As this empowerment grows, implementing a customer centric supply chain will also grow in importance. The customercentric supply chain modern materials handling. In my blog four supply chain strategies to drive digital transformation. The study, entitled enhancing customer centric supply chains, was conducted by scm world and cranfield university. Enhancing customer centric supply chains slideshare.
The company determined, while not necessarily the most efficient way, that having smaller vehicles strategically placed throughout the network would enable the stores to be more. The customerdriven supply chain digital supply networks. The role of the business model there is much discussion today of the strategic supply chainunfortunately most of it takes place without telling the reader what exactly is meant by the term. The consumer centric marketplace 1 chapter 2 from supply chain to demand network 15 chapter 3 barriers to changes in the supply chain 31 chapter 4 relationships are the foundation of the demand network 45 chapter 5 how to create the demand network. The evolution of supply chain management 1990 senior leaders embrace the concept of endtoend integration. Customer centric also known as client centric is a business strategy thats based on putting your customer first and at the core of your business in order to provide a positive experience and build longterm relationships. The new supply chain must be able to ship eaches to a store or directly to a customer. Six steps to align supply chain with corporate strategy. And how do customercentric supply chain strategies evolve based on promotion strategies and the digital path to purchase. Starbucks has shown great performance n this area and the brand has come to be recognized for its efforts in managing its supply chain. Enhancing value through customer centric supply chain the. Drive more value from your supply chain by improving the way you manage customer service optimize linked interactions across your entire customer service environment implement customercentric strategies, including customerbased supply selection from customer service supply chain management.
As i work with clients to help them refine supply chain strategies i often find many companies will use words. Melnyk defines this as a supply chain whose goals are aligned first and foremost with the needs of. Creating a customercentric supply chain for ecommerce. Jul 06, 2017 the supply chain focused on cost and meeting the schedule. A supply chain is basically a group of independent organisations connected together through the products and services. We recently published the latest report in our supply chain fundamentals series, a framework for customer centric supply chains.
Micro marketing, social media and big data are powerful tools in identifying new consumer segments and capturing new market trends. Customer segmentation, and building a customer centric supply chain, is a popular topic at conferences. The company determined, while not necessarily the most efficient way, that having smaller vehicles strategically placed throughout the. The key ingredient for establishing a true customer centric supply chain comes with embedding, or integrating, realtime market signals and customer information into all supply. Last week, a client leaned across the table and asked, is a customercentric supply chain strategy the same as a demanddriven supply chain strategy. The future of supply chain management supply chain 247. Fortunately this company had developed a customer centric attitude and included the supply chain in its transformation. Role of supply chain practices on customer satisfaction in. Why you need to switch to a customer centric supply chain to. Role of supply chain practices on customer satisfaction in the printing industry in kenya. Sainsburys chooses blue yonder to transform supply chain. An example, as shown in figure 4, demonstrates that the elements of supply chain costs vary widely by customer. Ecommerce customer centric supply chain fedex supply chain.
This approach demands that you determine the best strategies to provide value to the customer. Customer needs must be responded to, and companies must treat these needs by making them the focus of their supply chain requirements. The problem, however, was that this system was not. Pdf building a customercentric supply chain strategy. The most important part of developing a customer centric supply chain is to start from the end customer s perspective. By vikram singla, business development director, oracle.
For most retailers, that means redefining the stores role in the supply chain, new customer centric fulfillment strategies such as buy onlinereturn instore, buy onlineship to. Articles are being published every day asserting that customers are becoming more empowered. In this day and age, no doubt that customer centricity is driving business strategies. Ecommerce is changing the landscape of the retail supply chain. Developing customer centric supply chain anita arts, chief supply chain officer liberty global. Global supply chain management forum average of 20 40% savings from b2b outsourcing.
That different solutions strategies will require different levels of customercentric organization. To learn how supply chain leaders minimize risk and maximize opportunities, listen to my conversation with ben wright, associate editor, from oxford economics, and download the research study of. Alexandre has also been president of the brazilian institute of supply chain professionals i. Footnotes 1 lora cecere, seven thoughts to build a customer centric supply chain organization, supply chain shaman, 22 november 2015. Analyzing and evaluating critically tescos current. Why a customercentric supply chain matters blume global.
The effect of customercentric green supply chain management. Models for achieving customer satisfaction, supply chain performance, and shareholder value book. Aug 11, 2016 however, it gave me some great time to think. Developing a customer centric supply chain strategy from the outside in. To support the businesss future supply chain program, sainsburys will benefit from extending its current blue yonder. Customer centric strategies offer the best solution based on.
Galbraith designing the customer centric organization chapter two customercentricity. Amazon is one of the most known ecommerce companies in the world, and its logistics and supply chain model with a customer relationship management algorithm combined with simple third party delivery systems is the envy, challenge and possibly a threat for many actors in the industry. Current consumer demands are driving retailers to develop omnichannel capabilities for both fast order fulfillment and fiscally rational returns. The supply chain customer metrics i am used to hearing discussed are often contributors to the perfect order metric orders shipped complete, on time, etc. This study explores the links of implementing customer centric green supply chain management gscm with its antecedent factors i. How to create a customer centric strategy for your business. Customercentricity what it means to be customercentric.
Metrics and benchmarking procurement organizational models procurement services procurement services landscape procurement strategy. When there was a problem, the supply chain team had a new perspective on the issues, and could think more creatively about how best to resolve them. In a customer first strategy, companies respond to whatever a customer requests. The degree of how well a supply chain can serve their consumer ultimately defines its competitive edge in the market place. The outside is how your products and services appear to and interact with your end consumers. In the drive to improve supply chain performance, managers in diverse industries have achieved substantial gains by sharing information. Apr 05, 2016 lets take a look at three best practices that executives can implement to create a more customercentric supply chain that will far exceed customer expectations. Put your supply chain strategy on the same schedule as the rest of your planning.
Definition, best practices a definition of customercentric customercentric, in theory, is fairly selfexplanatory. The role of the business model there is much discussion today of the strategic supply chain unfortunately most of it takes place without telling the reader what exactly is meant by the term. The customer centric supply chain pdf the right place. More recently, companies have also found that sharing information related to market intelligence and promotional plans can dramatically. Data for this study were obtained through a survey of 126 automobile manufacturers in china. Creating a customercentric supply chain spend matters. Customercentric supply chain strategy provides an approach to. Supply chain management applications devel oped by manugistics and i2 technologies, for instance, attempt to optimize production and logistics activities. The framework is built upon four essential foundations.
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