Can Supply Chain Management Practices Influence Customer Satisfaction and Loyalty

Table of Contents

Introduction 4

Literature Review 4

Definition of Customer Service 7

Before and After 7

Types of Customer Service 8

Pre/Post-Purchase and Retention/Loyalty 8

Interactive Customer Service 9

What is the Optimal Mix? 11

Identifying Cost-Effective Customer Service Strategies 12

Conclusion 13

References 15

Abstract

This paper identifies the types of customer service and shows how supply chain management practices can influence customer satisfaction and loyalty. Customer service is the process of providing assistance and support to customers. It can take many forms, including phone support, online chat, and in-person service. Supply chain management is the process of overseeing and coordinating the activities that are necessary to move goods from one location to another. supply chain management practices can have a significant impact on customer satisfaction and loyalty. This paper will identify the different types of customer service and discuss how supply chain management practices can influence customer satisfaction and loyalty. By understanding the link between supply chain management and customer service, businesses can ensure that they are providing the best possible experience for their customers.

Introduction

During a period in Americas history when so-called quiet quitting is replacing pride in workmanship and organizational loyalty in the workplace, it is not surprising that customer service has been adversely affected in the process. In response, a growing number of companies are seeking to identify cost-effective strategies that can be used to improve customer service (Gurnani et al., 2022). Because there are many different types of customer service strategies available and each has its strengths and weaknesses, it is important to determine which strategy or combination of customer service strategies is best suited to a given organizations customer service needs. From a supply chain management perspective, customer service should be considered an important element in the overall equation (Heikkil, 2002). Therefore, that is why this paper aims to identify cost-effective strategies that organizations of all sizes and types can use to improve their customer service function.

Literature Review

The literature shows that there are a number of cost-effective strategies that organizations can use to improve their customer service function. One such strategy is to focus on employee training (Haque & Islam, 2013). By ensuring that customer service representatives have the skills and knowledge they need to effectively resolve customer issues, organizations can make a significant impact on the quality of their service. Another strategy is to make use of technology (Heikkil, 2002). Automated call systems and live chat features can help to improve the efficiency of the customer service process, making it easier for customers to get the help they need. Finally, organizations should also focus on creating a culture of customer service within their company. By instilling a sense of ownership and responsibility in employees, companies can foster a more customer-centric environment and improve the overall quality of their customer service (Chavez et al., 2016).

Chavez et al. (2016) note that customer pressure tends to lead to better operational performance and customer satisfaction in automobile manufacturers in China; the researchers arrived at this conclusion by evaluating links between customer-centric green supply chain management (GSCM) and other factors, such as customer pressure and performance outcomes (like operational performance and customer satisfaction). Their findings are similar to those provided by Ellinger et al. (2012), who sought evidence of a link between supply chain management and firm performance. Ellinger et al. (2012) found that companies which are routinely recognized by peers and experts for superior SCM tend to achieve higher levels of customer satisfaction and shareholder value than their peers in their respective industries.

Additionally, Haque and Islam (2013) explain that SCM practices can impact customer satisfaction in the pharmaceutical industry. Their research focused on how SCM practices impact customer satisfaction in terms of specific dimensions. They used quantitative data obtained through the survey method in the pharma industry in Bangladesh. Interestingly, they found that three dimensions of SCM (collaboration and information sharing, logistics design and IT infrastructure, organizational culture) impact customer satisfaction but that only the first two have an effect. This was essentially supported by prior research by Heikkil (2002), who showed that in order to maintain good customer satisfaction and efficient supply chain management, fast-growing industries need to have a good relationship between customers and suppliers. Heikkil (2002) used the case study approach, but the main takeaway was that flexibility and being able to adapt to customer needs in a fast-growing industry is essential for achieving customer satisfaction.

But there is another take on SCM that also needs to be considered, which is the purchasing power of the consumer. Mappesona et al. (2020) examined the impact of product quality on purchasing decisions partially, promotion on purchasing decisions partially, and product quality and promotion on purchasing decisions simultaneously using a case study approach. The authors found in their quantitative analysis of data obtained though survey that product quality affects purchase decision partially, promotion affects purchase decisions partially, and product quality and promotion together also affect purchase decision. The research by Mappesona et al. (2020) is relevant because it highlights the association between purchasing and customer satisfaction.

In summation, supply chain managers need to consider how their role impacts customer service, and how customer service should impact their decision-making. Excellent customer service has always been essential for businesses, but in recent years it has become even more important. With the rise of the internet and social media, customers now have a louder voice than ever before. A single poor experience can quickly spiral into a PR nightmare, while a strong customer service reputation can generate buzz and attract new business. For supply chain managers, this means that their decisions can have a major impact on customer satisfaction. When planning inventory levels or choosing suppliers, they need to keep customer service in mind and make sure that their actions will lead to the best possible outcomes for both the company and the customer. By taking a customer-centric approach to supply chain management, businesses can ensure that their customers always have a positive experience.

Definition of Customer Service

Although there is no universally accepted definition of customer service, most consumers readily recognize when they have been treated appropriately by companies, especially when things go wrong. Indeed, it is reasonable to posit that virtually...

Identifying Cost-Effective Customer Service Strategies

In this context, cost-effective means achieving the most effective customer service for the resources that are invested in the function. For example, it would make little sense for a small, home-based company with few employees serving international customers to offer walk-in customer service, just as it would be ineffective for them to provide a combination of customer service types that are redundant. A growing number of companies of all sizes, however, have found that providing customer service through various social media platforms which can deliver real-time assistance is among the most cost-effective strategies that are available (Gunarathne et al., 2018).

Although providing customer services using social media platforms requires staff to monitor these sites continuously in order to provide timely information and assistance, many consumers are already members of these platforms and are comfortable using them for various purposes, including obtaining customer service when they experience problems with products or services. Because social media platforms provide a way for companies to offer customer service by live humans, it is a superior strategy compared to other, more costly alternatives.

In fact, social media platforms have become an increasingly popular way for companies to offer customer service. There are several reasons for this. First, social media platforms provide a way for companies to connect with their customers in real time. This is important because it allows companies to resolve issues as they arise, rather than waiting for customers to reach out through other channels. Second, social media platforms are generally more cost-effective than other options, such as hiring additional customer service staff. This is because they allow companies to handle customer service inquiries without incurring the additional costs associated with hiring and training new staff. Finally, social media platforms offer companies the ability to scale their customer service operations up or down as needed, which is important in today's rapidly changing business environment (Willis, 2022). Overall, social media platforms offer a number of advantages over other options for handling customer service inquiries, making them the superior choice for most businesses.

Few companies enjoy the deep pockets that are needed to offer extraneous customer service types, and it is reasonable to posit that the vast majority of companies fine-tune their customer service offerings to match demand and inquiry types. Such fine-tuning requires eliminating ineffective customer service and adding others when the situation demands it. But for supply chain management, this fine-tuning is worth it.

Conclusion

The research showed that effective customer service is essential for success. Still, the function involves far more than just helping people solve an isolated problem with an individual product or service. Supply chain management can have a big impact on the overall satisfaction of the customer. The research has shown that customer service is important before and after a sale and that there are multiple strategies available to perform this function. Based on the findings that emerged here, it is evident that supply chain managers should consider how social media platforms can be highly cost-effective customer service…