Their experiences on this journey will strongly influence their attitudes which will help form their behaviors. Their behaviors will ultimately drive outcomes and is why (CX) Customer Experience has become so critical in modern commerce.
At its simplest, CX is the set of perceptions a customer has with a company throughout their buying and owning interactions. It is obvious that positive customer experiences enable businesses to attract and retain more customers, sell more products, and do more business.
How does this relate to the supply chain
? If a customer had a delivery or quality issue with a previous purchase from your company (experience), they might be reluctant to buy from you again, so the customer will therefore look for an alternative
supplier, resulting in lower levels or repeat business and reduced sales which we will call the outcome. Historically, CX has been focused on sales, customer service, and marketing. But with the integration of supply chain into end-to-end business processes, it is apparent that the supply chain itself can have a significant impact on CX, both in a business to business (B2B) and a business to consumer (B2C) environment.
According to a report from KPMG, a Demand Driven supply chain approach
can result in
- a 1-4% improvement in sales,
- a 5-10% reduction in operating expenses and
- a 20-30% reduction in inventory.
Consumers are driving experiences at a much quicker pace and with much higher impact on both the top and bottom line. With the growth of the time-sensitive, always-mobile and always-connected consumer,
supply chains have to be both agile and customized to exceed. Consumers have the power to access social media and to voice brand concerns within seconds of them occurring.
An issue with the supply chain will have a far quicker impact on the overall brand than in the past.
At the same time, as brand promise has strengthened, consumer loyalty and the willingness to endure a poor experience have weakened. So doing business as usuall is not going to cut it for supply chains. Instead we need to look at supply chains from a different perspective and we believe web infrastructure technology is going to change the current landscape.