Supply Chains with a Focus on Customer Value Essay - 6

Supply Chains with a Focus on node Value - Essay ExampleSupply concatenation management excellence is crucial to customer enjoyment consequently, customer satisfaction is critical to customer loyalty, and loyalty critical to profitability (Reichheld 1996 cited in Flint et al., 2008, p. 258). In order to address the problem of customer loyalty, firms apply product and service innovations. Supply chain development should be a part of the firms strategies to address customer satisfaction and loyalty. This is also the main objective of market orientation customer satisfaction through superior performance of products and services (Singh, 2004, p. 3). Companies attain competitive strand through constant innovation. The first periods of the new century marked profound shifts in organisations strategies with aims for talents, technologies and customers focus and loyalty (Venkatraman and Henderson, 2008, p. 258). Organisations keep constant contact with customers, looking for ways to come across their needs and wants. Good customer relation is an important aspect of business (McColl-Kennedy & Schneider, 2000, p. S884). To get closer to the customers, businesses discombobulate to work as cohesive organisations, using tools and technology (Gulati and Oldroyd, 2005, p. 92), and focus on knowledge-based economy, slowly moving out-of-door from the industrial economy. Identifying and working out to strengthen customer satisfaction, tot up chains can help in having good relationship with customers, but supply chains have two attributes which are cost and service. profit is itself responsiveness to the customers demand, but demand can also increase cost. Putting on a lot of innovations on the product/s means adding cost on production. Supply chain efficiency is measured as a cost of producing and delivering goods and service to the customer. (Hines, 2004, p. 61) This means that if we increase responsiveness to supply chain, we add cost to the delivery of service.