To remain competitive in the age of Amazon, businesses, and 3PLs that deliver products directly to the customer, have had to transform their supply chain strategy to meet the demands of the modern consumer. Supply chain performance is the key to boosting customer experience and increasing profitability. Warehouse management technology expert Jim Laverty says, “No other part of your business can have the supply chain’s impact on reaching the customer, lowering retail prices, and improving service levels, meaning effective supply chain management creates value for both your customers and your business.”
Customers don’t just buy a product or service — they buy an experience.
One in three consumers (32%) say they will walk away from a brand they love after just one bad experience and 86% of customers say that they are willing to pay more for a great customer experience.* From the point of order to delivery, customers expect their interactions to be seamless, transparent, and fast.
Traditionally the relationship between business and customer was heavily leaned towards the business. However, in an age where the consumer can have full choice over the products they purchase, quick delivery, and complete visibility over when their product or service will arrive, the customer now has regained power in the relationship. The delivery of an exceptional customer experience is critical to a brand’s long-term success.
The 2018 Retail Delivery connect Report found that “ They (retailers) see the supply chain as an opportunity to expedite delivery through clearer logistics, but also to provide customers with more transparency into their orders.” In 2018 74% of retailers have adopted supply chain technology specifically to improve the customer experience and they are implementing supply chain technologies based on current consumer trends.**
While each retailer takes a different path to create a customer-centric supply chain. The Retail Delivery connect report found that a customer-centric supply chain helps retailers not only satisfy consumer expectations but also helps retailers identify what their customers want. With 99% of retailers saying that big data & analytics have direct benefits to customer experiences.** While the vast majority use predictive analytics and artificial intelligence within their supply chain to increase visibility into their customer’s needs.** The report found that “among the retailers in the study with new supply chain strategies and initiatives, 88% claim they help them exceed customer expectations, and 84% claim they allow them to give customers more control over their experiences.”
It’s clear that the supply chain can make or break the customer experience. And to thrive within e-commerce, businesses must invest in supply chain technologies. Those that create integrated, transparent and responsive supply chains are capable of delivering exceptional customer experiences more profitably.
*Note: Statistics sourced from PWC **Note: The 2018 Retail Delivery connect Report
**Note: The 2018 Retail Delivery connect Report