In the highly competitive retail market, you will hear a lot of talk about the “customer experience.” This concept was once the domain of sales reps and marketing teams, but the general public has gained better awareness in recent years about where the items they buy come from and how they get to the store shelf or front porch.
The customer experience begins with looking at an online ad or browsing an e-commerce site, and it ends when the customer disposes of that item someday. Somewhere in the middle, that item had to be in stock on a shelf or had to arrive on time and neatly packed in a box to the right address at the right time. From fast deliveries to product availability and real-time information, your supply chain directly influences how customers think about your brand. If you manage it well, it can be a powerful customer loyalty tool. Conversely, when supply chain operations stumble, it can mean lost sales and damaged reputations.
That means supply chain professionals must evolve beyond their traditional role. On top of expertise in getting products from A to B, they must also understand the end customer’s needs and how to meet them. Here are some of the ways supply chain leaders can have a positive influence on the customer experience.
On-Time Shipping is Everything
One of the most direct ways your supply chain impacts customers is through shipments and deliveries. That is why most logistics operations aim for on-time delivery above 95%.
In stores, customers expect items to be on the shelf when they come looking for them. If they are not there, that is a supply chain problem. Similarly, e-commerce customers expect that order to arrive within the expected delivery window and without damage.
Whether the problem is stockouts or late deliveries, the result is the same — frustrated customers will shop at your competitor next time. Effective inventory management and timely deliveries are essential to keeping customers happy. By investing in the right technology and partnering with the right providers, businesses can meet customer expectations for fast, reliable delivery, whether that delivery is meant for next-day shipping to someone’s front porch or a bulk delivery in a scheduled window at the store.
Communication is Key
Transparency is extremely effective at building trust with customers. It is up to logistics professionals to provide retailers with the real-time data that customers need. Even when something does go sideways — and let’s be honest, something usually does, eventually — a little transparency around delays or changes in the order can greatly reduce customer anxiety and frustration.
Packaging Reflects on the Brand
Plenty has been written about unboxing experiences, and those are important. But this is not that. Sure, flashy packaging is fun, but it does not mean anything if it cannot protect what is inside.
Your packaging will define the product’s condition when it reaches the customer. Badly packed or damaged items will result in anger and disappointment, leading to costly returns and damage to brand loyalty. It is up to logistics teams to find a way to ship items individually or in bulk in an effective and cost-effective way. Shoppers expect products to be intact and ready to use, and they are more likely to trust your brand in future purchases every time that happens as it should.
Sustainability Matters
The exact percentage varies from company to company, but the supply chain is responsible for the largest percentage of an organization’s carbon footprint. So, when you hear about consumers demanding the brands they support to operate more sustainably, what that really means is that shoppers want the brand’s supply chain to clean up its act.
These customers seek brands that prioritize eco-friendly practices, such as sustainable packaging or carbon-neutral shipping. Supply chain leaders can improve the customer experience in a big way by aligning supply chain processes with consumer values. Initiatives like waste reduction or route optimization for lower emissions improve the environment and enhance their brand’s appeal to environmentally conscious consumers.
Choosing Partners Carefully
A supply chain leader can make all the right investments to boost customer experience, but it won’t mean anything if partners are chosen poorly. When selecting a third-party logistics (3PL) provider, ensure that they understand the growing influence the supply chain has on the end customer’s experience. Your 3PL should not act as a separate entity but as an extension of your supply chain, the values your brand upholds, and the goals it seeks to achieve.
About Phoenix Investors
Founded by Frank P. Crivello in 1994, Phoenix Investors and its affiliates (collectively “Phoenix”) are a leader in the acquisition, development, renovation, and repositioning of industrial facilities throughout the United States. Utilizing a disciplined investment approach and successful partnerships with institutional capital sources, corporations and public stakeholders, Phoenix has developed a proven record of accomplishment of generating superior risk adjusted returns, while providing cost-efficient lease rates for its growing portfolio of national tenants. Its efforts inspire and drive the transformation and reinvigoration of the economic engines in the communities it serves. Phoenix continues to be defined by thoughtful relationships, sophisticated investment tools, cost efficient solutions, and a reputation for success.
Frank P. Crivello is a Milwaukee-based developer and Chairman & Founder of Phoenix Investors.
