No matter how sophisticated supply chain management becomes, there will always be a few underlying principles that divide success from failure. In a post over at DC Velocity, Chris Jones boils supply chain competitiveness down to three Rs, in this order: responsiveness, reliability, and relationships.
Staying Competitive is Grrreat!
Responsiveness is all about the tactics you use to capture the new customer. When an opportunity arises, you have to jump for it, and that of course demands agility. But if you get so tangled up trying to reel in the big new fish that it affects your profits or interrupts other customer dealings, it is time to rethink the way you are responding.
Reliability meanwhile regards how you keep customers once you have them on the hook. Jones says this is the step that often receives the “least credit,” perhaps because it is mostly the business-as-usual step. But he reminds you that even one goof-up in your service can be enough for a customer to leave, in spite of a history of good service. To maintain reliability, Jones says to focus on “on-time deliveries with shorter lead times, and a greater mix of products and value-added services”
Relationship finally is the level at which you “own” the customer. That is to say, your businesses see eye-to-eye and derive value from each other in such a way that the customer chooses to come to you first with its needs. Jones says it is possible to provide good service and never develop a genuine relationship with a customer, making relationships that much more desirable and elusive. To read Jones’ full blog post, you can click here: http://blogs.dcvelocity.com/bestpractices/2014/05/3-rs-of-supply-chain-competitiveness.html