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Understanding the customer

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Understanding the customer
The Customer Relationship in Supply Chain Management written by: Ian Johnson•edited by: Jean Scheid•updated: 9/2/2010
Why are some companies better at managing their customer relationships than others? It's because they have a well-run supply chain that ensures the most common parts are available and they never promise something they can't deliver? Learn here about customer relationship in supply chain management. The Customer Relationship in Supply Chain Management
When it comes to managing a supply chain, most companies concentrate on lowering their inventory cost of ownership.
Rarely do they consider how important a role their supply chain plays in customer management. The proper supply chain can shorten product lead times, increase sales, and grow market share. So, how important is the customer relationship in supply chain management?
The entire purpose of inventory is to have product available to sell and make money. The issue is knowing when to have that inventory and knowing when a customer will need it. Sounds pretty easy doesn’t it? Well, it isn’t. There is nothing at all easy about inventory management. Purchase too much and hold it too long, and inventory costs rise. Purchase too little and your company misses sales opportunities. Neither is acceptable. Before discussing a possible solution, it’s best to review how the proper supply chain can shorten lead times, improve customer relationships, and grow market share.
Afterward, we’ll look at the strategies adopted by some of the best companies and see how they maximize the customer relationships by a constant supply chain.

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A Well Run Supply Chain Shortens Product Lead Times
Most companies are aware of what it

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