In the modern days, supply management managers have had to consider customer needs as they structure their supply chain process. Unlike the days before, customers have come to become a major voice in shaping the supply management process due to their increased impact in the competitive business markets. As markets continue to become competitive, customers increasingly become the determinant force on whether a business supply chain would succeed or fail. In fact, the customers have increasingly increased their impacts in the way supply chains are managed in the modern day within the competitive framework of the global markets. Global markets have increasingly become competitive making firms to have the choice to find means to remodel their supply chain strategies to capture the attention of their target consumers (Seungjin, 2000). In essence, the customer has a voice today in shaping supply chain processes than the case was a decade ago. Supply chain managers have to study consumer markets to know the needs of consumers and use the knowledge on those needs to design workable pipelines for success in the running of their businesses.
In the past, consumers had no influence on supply chain design and related processes. This happened because of the fact that at the time, customers did not know much about supply chain processes. When a consumer ordered for a pair of shoes, customers did not know here the shoes were made, the manufacturer who made them, what state should the shoe be at the time of delivery, and at what condition would the items would be delivered (Kleiner, 2001). At the time, consumers did not only know about the way the product would reach or would not otherwise make effort to know the channels that would need to be followed to make the product reach to the success. However, things have changed in the recent past in regards to exposure that customers have to the way supply chain management processes are managed. The modern consumer has a picture on the process their products would go through before it arrives. As a result, consumers have gained a big influence over the way supply chain managed.
Delegate your assignment to our experts and they will do the rest.
Customers have increasingly had a significant impact in the management of supply chain processes. First, they have continued to affect supply chain management processes through order tracking. It is important to note that delivery times are always vulnerable to many variables. For instance, if a customer who has ordered a product from another country and this country factory burns, the dangers could be devastating. In this context, there was pressure to develop online retailers who would track orders through the Internet and offering their customers the ability to do the same. In the past, consumers had limited expectations when it came to delivery times unlike the case as it is today. The development of new technology for tracking has raised consumer expectations in the recent past. As a result, supply chain managers continue to give more attention to the problems and expectations of customers. Today, if a company has weaknesses in its supply chain management, there would be need to address these issues before the consumer switches to another company. This approach is so critical considering the fact that companied would need the customer. The company will have to work on ways to meet the needs of the customers or lose business to a competing firm (Haque & Islam, 2013).
Consumers also have a major influence in the supply chain processes through their engagement in dedicated supply chain management. It is critical to note that majority of the e-commerce that is run today runs on a B-2-B as opposed to B-2-C. However, these changes have not lowered the impacts of customer expectations, which continue to affect the supply chain. A good case example is a case where a loyal customer is sold for defective items. The customer will file a complaint about the retail store that sold the shoes. When such happens, the company that sold the shoe would have to trace the said defect through investigating the supply chain model that was used to supply the items (Meindi, 2002).
Customers are also a major influence in the management of supply chain processes through their contribution towards sustainable practices. The recent past has seen increased demand by consumer for better and sustainable practices that may have significant impacts on business. Consumer factors musty are put into consideration if the supply chain management process has to bear fruit. A good example is the case of mobile phone manufacturers. The focus of phone manufacturers is to look at the need so upgrade, need to stay on budget, maintain the durability of the device, and lastly, need to check on the environmental impacts of the new technology that has been put into place. In the event these items are analyzed and found to be problematic to target consumers, manufacturers would not adopt them in running their supply chain (Ellram, 2001).
Conclusively, customers have increasingly come to impact the way supply chain processes are managed in terms of the prices of the items. Customers have a wide pool of manufacturers to pick from when they want to purchase a product. They would go for suppliers who offer best products at cheaper prices. Price-conscious consumers have a tendency to go for products that retail at better prices. The fact that consumers can purchase items from anywhere in the world means that supply chain managers have to respond by taking on supply chain models that would minimize the prices of products. In fact, many companies have engaged in minimizing the complexities of their supply chains to minimize the costs that they would have on the final product (Beamon, 1998). There is increased preference in developing simpler and straightforward supply chain models that would lower the costs of production. Reduced cost of product leads to a reduction in the price offers of the products released into the market. In fact, managers of supply chain systems have increasingly invested in developing supply chain models that are efficient and would lead to decreased product price. The focus of this new approach is not only to meet the needs of consumers but also to largely make the businesses grow amidst the changing market forces (Agarwal, 2007). At the end, success in supply chain management has been largely tagged to the nature and needs of the consumers as they connect with the products vis-à-vis the fit of the product features to their purchasing ability at the time.
Conclusion
Conclusively, there is no doubt that customers increasingly have an impact in the way supply chain management is handled today. It is clear that customers continue to redefine the way supply chain management is handled. In the day of increased global market competition, customers have become a huge voice in shaping the way supply chain processes are designed and structured. Indeed, customers have shaped the way these processes are handled by the fact that there is a high level of competition among suppliers today. At the end, the customer has a voice on supply chain management, a voice that cannot be silenced. As businesses continue to expand in their competitiveness, the power of the consumer in policymaking is enhanced. The higher the competition in the global markets, the higher the influence that consumers have in the way the supply chain management is managed. As noted before, the consumer continues to have a major impact in the choices made in regards to supply chain through the way companies have to accommodate their needs. Consumer/customer needs can no longer be ignored for they are at the end of the supply chain cycle and are the focus to make sales. The intent of developing effective supply chain systems is to ensure that the system works well for consumers and leads to increased market impacts for the said business. On this account, customers play a premise role in shaping the way supply chain processes are managed at any particular season of the business.
References
Agarwal.V. (2007). “Contemporary Issues in Supply Chain Management,” A Case Study of Marico Industries, Supply Chain Management. New Century Publication. New Delhi.
Beamon, M. (1998). “Supply chain design and analysis: models and methods.” International Journal of Production Economics 55(3), 281–294.
Meindi, P. (2002). Supply chain management; Strategy, planning and operations , Delhi: Pearson Education.
Ellram, L. M., (1991). “Supply Chain Management,” International Journal of Physical Distribution and Logistics Management, 21(1), 13-22.
Haque, M., & Islam, R. (2013). “Effects of Supply Chain Management Practices on Customer Satisfaction, Global Business and Management Research an International Journal, 5 (3), p. 45-115.
Kleiner, B. (2001).Inventory Management in Women's Retail Clothing Industry. Management Research News. 2 (24), 40-45.
Seungjin W. (2000). Creating value through supply chain integration, supply chain European Journal of Business and Management , 8 (21), 34-67.
