Supply chain management is one of the components of business operations which determine the level of success that a firm experiences. Firms which have invested heavily in their supply chain are able to obtain raw products and distribute the finished commodities to the market. Moreover, effective supply chain management allows companies to establish strong relations with their partners. While developing supply chain strategies, firms often neglect to address an important issue: customer service. The success that such companies as United Parcel Service have registered can be linked to the immense efforts and resources that the firms have committed to meeting every need of their customers.
United Parcel Service
In the parcel delivery industry, firms are judged on the basis of their capacity to deliver products in good time. UPS has risen to the top of the industry owing to its dedication to prompt deliveries. As part of its efforts to offer excellent customer service, the company often partners with its rivals who have developed better networks or are better able to deliver products to its customers. For example, in collaboration with the U.S. Postal Service, UPS is implementing SurePost, a service that enables it to make deliveries reliably and consistently while leveraging the networks of its competitors (“2017 UPS Annual Report”, 2018). Another element of UPS’ logistics and supply chain management is enabling customers to take part in its operations. As opposed to other firms which treat customers as mere recipients of service, UPS strives to ensure that its customers feel involved. For example, the company has created a program referred to as UPS Quantum View. Through this program, customers are able to perform such actions as manage and track their shipments (“United Parcel Service”, n.d). Furthermore, the company has developed a paperless documentation process. This process has spared customers of the need to provide paper documents, thereby enhancing convenience and ease of service delivery. UPS My Choice is yet another program that UPS designed with the goal of providing its customers with service of unrivalled excellence (“United Parcel Service”, n.d). Thanks to this program, UPS has made it possible to direct the company on such issues as where they would like their delivery sent to.
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The various strategies and programs that UPS has created are intended to enhance the customer experience. While the customers benefit from these programs, the company’s supply chain system is also streamlined and it is able to fulfill its mandate with much ease. In designing and implementing the programs discussed above, UPS must have been driven by the need to enhance its competitive position. Given that the programs focus on customer service, one can expect that it has become a dominant player in the transportation industry. UPS clearly recognizes that to stay ahead of the competition, it needs to prioritize customer experience. The various programs that it has developed indicate that the company will go tremendous lengths to ensure that its customers receive their shipments in good time. This is the essence of customer service.
Delta Airlines
Delta Airlines is yet another firm that has invested in customer service. A review of the company’s logistics and supply chain practices reveal that they facilitate customer service. In the following section, the impact that the practices have on the four dimensions of customer service are explored.
Time and Dependability
The airline industry is intensely competitive. To gain an edge over their rivals, firms need to offer services in a timely fashion. Through its supply chain and logistics practices, Delta Airlines has achieved timely service delivery. Limiting the number of cancellations is among the practices that Delta Airlines has integrated into its supply chain (Peppers, 2018). As opposed to other airlines which are notorious for cancellations, Delta strives to keep the number of cancelled flights at low levels. This makes the company dependable and its service delivery timely. Another element of its logistics and supply chain practices is helping customers track and find lost items (Peppers, 2016). Through a well-designed communication and customer service system, Delta Airlines works with its customers to limit baggage loses. Given the investments that this firm has made in customer service, it is little wonder that it ranks highly as regards customer experience.
Communication and Convenience
Communicating with customers and ensuring that services are delivered in a convenient fashion is among the pillars of excellent customer service. Delta Airlines recognizes that to succeed in the airline industry, it needs to implement strategies that allow for clear and effective communication with customers while delivering convenience. One of its supply chain practices that enhance communication and convenience is adopting modern technology. This company has invested huge amounts in such facilities as check-in kiosks, mobile applications and airport information displays. It is true that these facilities are not necessarily related to supply chain or logistics. However, they underscore the lengths that the company is going to communicate with its customers and ensuring that they do not suffer inconvenience occasioned by such issues as flight cancellations. To further enhance convenience for its customers, Delta Airlines operates flights to dozens of cities across the US and the world. Overall, Delta Airlines strategies and programs are the key to its competitiveness.
From the discussion above, it is evident that Delta Airlines understands the value of customer service and inspired supply chain and logistics design. However, there are some issues that require improvement. To become more profitable, Delta Airlines needs to improve the level of convenience it offers its customers and how it communicates. It is advised that in order to improve communication, Delta Airlines should challenge its employees to be at the forefront of customer service. Currently, technology appears to be the main tool that the firm uses to communicate with customers. While it is critical, technology is impersonal and incapable of the warmth that humans can offer. Southwest Airlines is among the companies that have successfully improved customer service by tasking their employees with the responsibility of attending to customer needs and concerns (“Improving Customer Satisfaction”, 2017). Delta Airlines also needs to improve the levels of convenience that customers experience. To do this, the company should establish more routes so that customers do not have to endure long trips to the airport. Adidas is one of the companies which serve as evidence that by moving services closer to customers, firms can experience success (Israelit et al., 2018). This firm has leveraged technologies like 3D printing to minimize lead times and move production closer to customers. By implementing a similar strategy, Delta Airlines can expect to solidify its position in the airline industry.
References
2017 UPS annual report. (2018). UPS. Retrieved August 12, 2018 from
http://www.investors.ups.com/static-files/469f785d-5c5d-4c95-9b2e-3151de31a8c6
Improving customer satisfaction in the airline industry- lessons from Southwest Airlines.
Telus International. Retrieved August 12, 2018 from
https://telusinternational-europe.com/customer-satisfaction-airline-industry-southwest-airlines/
Israelit, S., Hanbury, P., Mayo, R., & Kwasniok, T. (2018). Building a digital supply chain that is
Fit for the future. Bain & Company. Retrieved August 12, 2018 from
https://www.bain.com/insights/build-a-digital-supply-chain-that-is-fit-for-the-future/
Peppers, D. (2016). How Delta wins in customer service. Inc. Retrieved August 12, 2018 from
https://www.inc.com/linkedin/don-peppers/masterful-innovation-customer-feedback-don-peppers.html
United Parcel Service Inc (UPS.N). Reuters. Retrieved August 12, 2018 from
https://www.reuters.com/finance/stocks/company-profile/UPS.N
