1
Running head: CUSTOMER SATISFACTION AND SUPPLY CHAIN
1
Customer satisfaction and supply chain
Student's Name
Institutional Affiliations
Course
Date
CUSTOMER SATISFACTION AND SUPPLY CHAIN 2
Abstract
Supply chain and customer satisfaction have emerged as an essential aspect for all organizations
in the market sector. The supply chain of a company is a great hidden tool that enhances an
organization's performance in increasing its profit. When comparing different aspects of the
business, the supply chain has proven to have the most significant impact on business operation
and, in particular, customer satisfaction. The paper presents the analysis of supply chain and
customer satisfaction. Also, the form tends to evaluate the impact of supply chain management
on consumer satisfaction. Supply chain management has facilitated the consumer's satisfaction.
Organizations have implemented a unique supply chain management platform that has enhanced
customer satisfaction. For organizations to be successful, they must consider customer behavior
effectively. In general, the paper presents the evaluation and analysis of different scholarly
articles related to supply chain and customer satisfaction. The introductory phase gives a
description of customer satisfaction and supply chain. The paper also presents a detailed
description of various aspects related to supply chain and customer satisfaction. The body phase
scrutinizes supply chain and customer satisfaction and the connection between the two elements.
Finally, the conclusion sections present the summary of the entire paper as well as the
recommendation.
Key words: Supply Chain, Customer Satisfaction, Supply Chain Management, Customer
Service, Global Economy, Organizational Productivity and Consumer Prioritization.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 3
Thesis statement
There are exists a significant connection between supply chain and customer satisfaction.
The relationship affects the benefits and performance of an organization, especially in the
marketing sectors. Besides, better supply chain management facilitates the process of enhancing
customer satisfaction throughout the organization.
Customer satisfaction and supply chain
Introduction
The heightened customer expectations in competitive global markets dealing with a wide
range of products have forced business enterprises to focus on their supply chain. Customer
satisfaction is the biggest aim of any business organization with an insight into increasing its
market share in the competitive world markets. The supply chain has developed rapidly due to
advancements in transport and communication technologies, which enhance a better service t the
customers. These advancements in the global economy made the world market look small and
efficient. A customer from any country can purchase products from far and wide and be
delivered within the shortest period. Mobile communication, internet, and overnight delivery
have eased the logistics network whereby a product takes less time to reach the destination. The
integration of manufacturers, suppliers, warehouses, and stores ensures that goods are produced
and distributed across various markets in the right quantities and time. Good supply chain
management helps to reduce multiple costs while increasing customer satisfaction levels.
The supply chain plays an essential role in customer satisfaction. The two vital parts of
consumer satisfaction are price and delivery, dictated mostly by the supply chain. An efficient
supply chain enables a business enterprise to beat its competitors on the retail price and
CUSTOMER SATISFACTION AND SUPPLY CHAIN 4
maximize profits. High performing supply chain management allows a business to exceed its
consumer's expectations on delivering their merchandise. Customers are satisfied when you give
them what they want when they want it and at the most affordable price. So, a well-managed
supply chain with the right approaches and skillful operations partners will enable the business to
give its customers (whether individuals or companies) an excellent service full of transparency
and visibility they crave. A well-optimized supply chain allows full control of a product's
journey from manufacturing to delivery, few errors, and efficient inventory management.
Further, it makes the customer experience better, making them happy, and increasing the chances
of purchasing from you again.
Thematic literature review of the study
There are different reasons why real supply chain excellence remains essential in most
business organizations that value customer satisfaction. During manufacturing, raw materials are
acquired; items are manufactured in one or more plants and distributed to various stores (Chavez
et al., 2016). All this implies a high intensity of fixed costs like raw materials, electricity, labor,
and transport costs. Thus a good supply chain will enhance cost minimization, encourage high
volumes, and inhibit flexibility in production. Second, some logistics networks are part of the
global supply network with complex communication channels to remove barriers in delivering
merchandise and increase coordination activities. Finally, there is pressure from a growing
impatient customer base that requires its products cheaper and faster, reducing lead times granted
to the producer. In general, improvement in customer service levels, based on the client
experience, can increase revenue.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 5
Further, a good supply chain enables the business enterprise to identify various customer
needs. Customer feedback is essential to improving their satisfaction. A company will avoid
over-generalized customer segmentation and focus on customer preferences in which customers
will pay premiums for specific add-on services (el Shoghari et al., 2016). The enterprise will
also know where to open new stores to increase customer's touch and which new products to
introduce in the market. Even the business will know the best time to switch transport and
communication modes to new ones. Besides, the supply chain also enables the business
enterprise to understand who should be favored in times of allocation of products and what
inventory levels should the factory run at any given time.
Justification of the study
New technological advancements have extraordinarily fulfilled customer expectations.
We are living in a generation where we want everything to happen quickly enough. We expect
loyalty when we click the "Proceed with payment" button on our computer, and the doorbell
should be ringing with the products fully delivered. It looks unrealistic, but with a robust supply
chain, it is practically possible. Customer satisfaction can also be improved by simplifying the
web site. Customers should not do a lot of research for them to buy a product. Customers need a
website they can navigate with ease to easily purchase different goods and services. Besides,
customers need businesses to deliver what you promise. If a promise is made that a product will
be delivered in two days, it should be honored (Yu et al., 2013). It is advisable for a business not
to over-commit if their supply chains cannot perform. To enhance customer satisfaction, the
industry needs to stay at the top of the inventory. The company should understand buyers'
patterns and ensure a more reliable flow of inventory and stock.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 6
The supply chain can also enhance the retail customers' satisfaction. It can be done by
increasing the quality of the products right from processing in the factory. Also, it can be done
by reducing the total order cycle time. Retailer customers need to get their products as quickly as
possible to prepare the works for sale. They want that when customers visit their stores, they can
get products immediately without missing the items. So, to achieve this, business organizations
need to have adequate supply chain management. Every customer is important and should be
treated like a king and be respected. Keeping customers satisfied and happy is very critical today
due to the competitive global market.
Good communication between sellers and buyers is central to customer satisfaction.
Today, there is a trend in many markets toward more complex customer demands, which trigger
companies to keep in touch with the customers to tailor their specific needs accordingly. It comes
from the theory that highly satisfied customers are more loyal than less satisfied customers. The
supply chain enables the business enterprise to conduct customer surveys and also solicitation of
feedback. Due to the changing dynamics in the global market, companies need to invest in the
supply chain to achieve full customer satisfaction to increase their sales volume.
Through work, we make ourselves relevant to others. God created human beings to be
happy for others. People nowadays are more concerned about value, efficiency, and speed to
satisfy their lives. God has a bright future for business because he encourages life significance
and encourages work. Human beings view companies as a source of money, but God views
business as enhancing His creation and making it better and productive. Christians are supposed
to understand the business's purpose based on design, fall, redemption, and consummation.
Using the biblical perspective, God intends to use the location for two primary goals. One
CUSTOMER SATISFACTION AND SUPPLY CHAIN 7
definition is for people to fulfill their potential given by God and provide them with the world's
needs. After creation, Adam and Eve were assigned work by God not as a punishment but as a
responsibility. There is a sense of fulfillment in doing your work diligently, just like satisfying
the customer. It is Godly to leave people happy after your services. People should work hard and
always do a clean business by honoring their customers' demands. God loves work done with a
pure heart and that which satisfies His creation.
Research Methodology
The research approach for this work was a discussion of peer-reviewed journals and
books. The data collected from these articles are presented in detail, individually and extensively.
Literature review
Chavez, R., Yu, W., Feng, M., & Wiengarten, F. (2016). The effect of customer‐centric
green supply chain management on operational performance and customer
satisfaction. Business Strategy and the Environment, 25(3), 205-220.
According to Chavez et al. (2016), consumer pressure and customer satisfaction form part
of customer-centric supply chain administration. A survey was conducted in 126 motor vehicle
manufacturers in China to collect data for this survey. The results suggested that consumer
pressure positively impacts the execution of customer-centric green supply chain management. It
will then help advance operational performance in terms of manufacturing, delivery, cost, and
quality. The book acknowledges that production flexibility and expenses do not necessarily
significantly impact customer satisfaction, but product quality, prices, and delivery are positively
linked with customer satisfaction. The book also highlights business enterprises' guidelines in
CUSTOMER SATISFACTION AND SUPPLY CHAIN 8
implementing customer-centric green supply chain management to fulfill customer demands and
improve the company's sales through customer satisfaction.
Customers are seen as one of the prime drivers for corporate institutions to improve their
environmental enactment. Customer demands pressurize firms to consider their logistics network
issues to enable customers to deliver merchandise on time and the right quality. GSCM has
played a significant role in improving operational performance and also standardize customer-
oriented logistics management scheme. According to Chavez et al. (2016), a firm should focus
on mounting core skills that enhance create enduring customer satisfaction.
NAQVI, M. H., ASIM, D. M., & MANZOOR, S. (2020). ANALYSING THE IMPACT OF
SUPPLY CHAIN AGILITY ON CUSTOMER SATISFACTION THROUGH
RESPONSIVENESS AND INNOVATION. CenRaPS Journal of Social
Sciences, 2(1), 26-40.
According to Naqvi et al. (2020), the enactment of the supply chain of a business
enterprise can be a great tool in lifting market performance and increasing business productivity.
On reaching the market, there are no other business sections that impact the supply chain agility.
The supply chain has a significant impact on enlightening the service levels, reducing costs,
building value for the customers, and increasing the market share. Customers always expect
high-quality products delivered on time. Businesses use a lot of resources in terms of finances
and labor to satisfy the market. Products ordered needs to be delivered in good condition and in
the promised time. The book further discusses how unsatisfied customers can use social media to
publicly blast a business enterprise if they have not honored the customer's promise. Such a
CUSTOMER SATISFACTION AND SUPPLY CHAIN 9
move can go a long way in damaging a brand's reputation. That is why a well-structured supply
chain management is essential.
According to Naqvi et al. (2020), customer sensitivity and responsiveness should be
taken seriously so that customers' complaints and requirements can be responded more
effectively. Effect complaints improved responsiveness, there must be trust between purchasing
institutions and their suppliers. The customer's reaction from the value received from the
purchase or use of a product is called customer satisfaction. According to this book, the
customer's response will be influenced by the product's ideal standard. The expectations based on
competitors' products and services should be provided at reduced costs while satisfying the
customer. Clear vision and value to the supply chain require an efficient and dedicated top
management platform. Every company must invest in a committed and innovative management
that will integrate the supply chain team for efficient logistics. The book further argues that the
supply chain should be flexible to cope with technological advancements in transport,
manufacturing, and communication.
Yu, W., Jacobs, M. A., Salisbury, W. D., & Enns, H. (2013). The effects of supply chain
integration on customer satisfaction and financial performance: An organizational
learning perspective. International Journal of Production Economics, 146(1), 346-
358.
According to Yu et al. (2013), supply chain incorporation enhances customer satisfaction
and improves performance. The journal investigates internal and external customer satisfaction
and market performance using data gathered from 214 manufacturing companies in china. The
CUSTOMER SATISFACTION AND SUPPLY CHAIN 10
results show that internal incorporation influences consumer and supplier relationships and that
external integration is positively and significantly connected to financial performance. The
results also suggest that customer satisfaction is definitely associated with the financial account
and influences the connection between economic performance and customer incorporation. The
journal further speaks about organizational learning theory, which states that interior integration
is an enabler for external integration. It also advises business institutions to progress from the
right internal processes to the sound management of external operations.
The study by Yu et al. (2013) further suggests the benefits of integration like proper
information flows and improved financial performance. When information is transmitted, it
should be synthesized to make it more useful. Integration helps to choose what information to be
synthesized and which should be gotten from outside the organization. The journal seeks to join
supply chain integration with the theory of organizational learning for customer satisfaction.
El Shoghari, R., & Abdallah, K. (2016). The Impact of Supply Chain Management on
Customer Service (A Case Study of Lebanon). Management, 6(2), 46-54.
According to El Shoghari et al. (2016), supply chain management closely impacts
customer service, which dictates its sales volume. The document highlights a proper
understanding of supply chain management elements and how they relate with their dealers,
suppliers, and customers. It is crucial to assess and analyze supply chain management concerning
customer satisfaction and improving sales management in the company. The document further
advises companies on ways of improving customer service and the entire comprehensive
CUSTOMER SATISFACTION AND SUPPLY CHAIN 11
development. The technical aspects also play an essential part in improving service delivery in
commercial-industrial sectors in which this document is based.
According to El Shoghari (2016). Supply chain management is pushed by different issues
in the company, which includes the need to improve demand costs, increasing procurement
levels, minimize transport costs, utilize the importance of e-commerce, and increase competition
in the international market. This needs to have effective management of inventory. The Supply
chain is considered a modern solution to overcome complexities in today's competitive and
dynamic market. The main initial objective of the supply chain was to excel in increasing
customer value. Later other benefits were experienced. Some of these benefits are an efficient
and faster distribution of documents, making a quick decision, reducing time to reach the market,
success in getting better contact, and, more importantly, strengthening the excellent relationship
between the business and its customers. The supply chain has done firms reduce the cost of
maintaining the inventory, speed of feedback, raise the quality degree, and improve the capacity
to match demand and supply.
The following are the most appropriate methods which can approach customer
satisfaction. One, the business should be to identify the needs and desires of customers. Establish
the reason for customers' preferences, needs change, and plan on making them happy and satisfy
their needs; secondly, by coming up with a flexible communication system that enables
information flow from customers to suppliers and vice versa for a better service. Business
enterprises should also establish procedures that collect, follow-up, and implement customer
complaints within the supply chain. Following the steps will make it easy for a company to
produce and distribute products at the right place and time. Finally, companies should develop a
CUSTOMER SATISFACTION AND SUPPLY CHAIN 12
mechanism to manage reverse flows of products from customers back to the business for various
reasons like damaged goods or more quantity than what was ordered. When customers return
goods, reasons should be listened to, and if there was a mistake by the company, customers
should be compensated. Through this, customers will be satisfied.
Omoruyi, O., & Mafini, C. (2016). Supply chain management and customer satisfaction in
small to medium enterprises. Studia Universitatis Babes-Bolyai Oeconomica, 61(3),
43-58.
According to Omoruyi et al. (2016), to circumvent the business failure, businesses are
pressured to increase their customers' satisfaction. The provision of quality goods and services to
customers by business enterprises has been made possible by adopting supply chain
management. Small and medium enterprises, renowned drivers of emerging economies'
economic growth, have adopted the supply chain management for improved customer
satisfaction. Every business is becoming courteous in handling the customers not to irritate them
and lose them to their competitors. This document evaluates the link between product quality,
variety and flexibility, customer satisfaction, and supply chain management. The study was
conducted in 131 South Africa companies, and the regression analysis was used. The study
suggested that supply chain management is predicted by product quality and flexibility.
Omoruyi et al. (2016) indicated that customer satisfaction is the art of listening and
replying to customers' wants, thus making them happy. It is primarily managing the business to
satisfy the customers' desires rather than the management's needs. It involves delivering to
customers more than their passions and always exceeding their expectations. Customer
CUSTOMER SATISFACTION AND SUPPLY CHAIN 13
satisfaction helps businesses achieve customer loyalty, enhance cash flow, and lessen operational
costs. A significant and strategic supply chain management can impact market share and
customer needs. These customers' needs include products, quality, and quantity, time, and
customer trends.
The document further highlights the need to produce low-cost, high-quality products
differentiated in various ways like branding and packaging, to distinguish from possible
substitutes. It is a problem for commercial competitors when goods look similar since they will
go with what is available near them. Furthermore, flexibility is also required to face the ever-
changing environmental needs and customers' expectations. Flexibility comes in terms of
material handling, operations, fashion, product design, delivery, and market flexibility.
Flexibility makes it possible to serve each distinct customer's needs effectively and leaving them
happy and yearning for another service.
Heikkilä, J. (2002). From supply to demand chain management: efficiency and customer
satisfaction. Journal of operations management, 20(6), 747-767.
According to Heikkila (2002), companies in fast-growing commerce attain reasonable
customer satisfaction and supply chain management efficiency. A good relationship between the
consumer and the dealer should be well-coordinated to contribute to reliable information flows
and increased demand. In a fast-growing industry, understanding the customers' desires and
needs and the right offering contributes to good cooperation because of effective supply chain
management. The document further highlights the need to implement customers' complaints
effectively for sustaining customer loyalty. Companies in the mobile telecommunications
CUSTOMER SATISFACTION AND SUPPLY CHAIN 14
industry, which is a fast-growing, the producer needs to adapt to offer a wide variety of products
in concurrence with many customers' changing tastes.
Further, according to Heikkila (2002), an effective response to consumer demand leads to
customer satisfaction. The document also indicates barriers to customer satisfaction. They
include poor management in the supply chain and failure to address the customers' complaints
effectively. Another problem is the failure to have a comprehensive view of their customers to
understand customers' wants and needs. Customers should not be made to walk from department
to department looking for assistance; good supply chain management should be instrumental in
joining the dots by taking action on behalf of the customer. Modern businesses should invest in
training their employees on handling the customers better. Customers should be allowed to use
their ideal channels to send their discontent. Companies should not use expensive phone lines or
complex websites as channels for receiving customers' information because failure to this will
make unsatisfied customers go publicly in social medial and damage the company's reputation.
Hadiyat, M. A., Wahyudi, R. D., & Sari, Y. (2017, August). Survival analysis for customer
satisfaction: A case study. In IOP Conference Series: Materials Science and
Engineering (Vol. 273, No. 1, p. 012029). IOP Publishing.
According to Hadivat et al. (2017), consumer satisfaction scores decrease in companies
that do not adopt the modern supply chain management model. Customer gaps were considered
as the difference between customer service and the expected service y the customer. The
document discussed the reasons for such gaps, including late delivery, damaged products, low-
quality products, high prices, and missing products. With a good supply chain network, such
gaps could have been identified and acted upon to ensure customers' satisfaction. The document
CUSTOMER SATISFACTION AND SUPPLY CHAIN 15
also highlights about survival analysis of companies whereby one of them is customer
satisfaction. Customers' loyalty is crucial and is built up by the experience of quality service.
External and internal communications to customers enable the business to collect more
information regarding customer needs. The customer's satisfaction in this document is measured
by how long the customer has been using the product.
Hadivat et al. (2017) outlined that new and technologically advanced supply chain
management is a crucial aspect of improved customer service and increased sales turnover.
Further, the document discusses the impacts of adequate supply chain management. First,
shippers enjoy greater efficiency and transparency in the products they buy. Shippers are under
pressure to cut costs as part of the company's cost-saving initiatives. Use of CRM (Customer
Relationship Management) technology has enhanced clear visibility of supply chain operations,
enabling managers to identify inefficiencies in commercial business operations.
Further, smooth and more frequent communication between the business company and its
customers is undoubtedly an impact of adequate supply chain management. Access to live
information on the ground can make managers control the supply chain's daily happenings and
immediately adjust customer requirements. For smaller enterprises with less investment, they
must find more accessible technologies like cheaper mobile devices and non-proprietary app.
Madan, M., & Kumari, S. (2012). Determinants of retail customer satisfaction: a study of
organized retail outlets in Delhi. Delhi Business Review, 13(1), 117-126.
According to Madan et al. (2012), the supply chain influences product awareness and
brand consciousness. The document discusses a study conducted to investigate how semi-urban
CUSTOMER SATISFACTION AND SUPPLY CHAIN 16
retail businesses are witnessing significant growth across India. The study's findings show that
most retail market customers were young people who use mobile phones to research products.
Most of the supply chain methods in these retail units use mobile phones to communicate with
the customers. Most of the youths in India possess mobile phones. The business enterprises will
get customers' desires and preferences quickly and deliver to the market with a short time frame.
The document further explains the importance of mobile phones to share information between
business enterprises and their customers. Mobile phones ensure that delivery is done on time
since follow up is comfortable with mobile phones. Once the product is delivered, the owner is
notified to collect it and share their feedback.
Further, According to Madan et al. (2012), delivering the product with the shortest time is
the primary customer satisfaction source. Many customers are not concerned with quality or
prices but are more concerned with convenient delivery. Customer satisfaction is increased when
a customer presses the "continue with payment" button on their computers, and the product is
delivered a few minutes later. But the customer will not be satisfied if a product of high quality is
delivered many days from the day of order. Further, a customer will not feel satisfied when a
product with a low price is delivered after days of waiting. The document concludes that
providing a product before the promised time will make the customer feel much more satisfied.
Companies are advised to develop technologically advanced transport logistics to economize the
delivery time and make delivery faster.
Levesque, T., & McDougall, G. H. (1996). Determinants of customer satisfaction in retail
banking. International journal of bank marketing.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 17
According to Levesque et al. (1996), dynamic changes in the global market have
promoted customer service. Customer satisfaction is being used as a competition tool. Many
international companies are investing in functional supply chains to reach every customer,
irrespective of their country globally. Businesses use every means available to meet the
customers' expectations and desires and yearn for more services. Creating customer loyalty is
essential in increasing the company's sales turnover. This study seeks to establish the relationship
between customer satisfaction and different service quality dimensions such as price factor,
quality, physical appearance, promotion methods, and personal interaction and establish the most
influencing factor that improves customer loyalty. The results suggested that many people are
more satisfied with various products from different countries at a reasonable price and specific
retail collection centers close to their residential areas.
The author further argues that an adequate supply chain management plays a more
significant role in unifying all these product dimensions for customer satisfaction. Global supply
chain management has many benefits for the company. The document highlights that supply
chain management enables companies to react quickly to unforeseen market situations, transport,
and communication approaches can be upgraded; wastes can be minimized and essentially
reduces the cost. All these have a more significant impact on the commodity's final price and
how the customer is served. Finally, through global supply chain management, customers can be
done more quickly and in a satisfactory manner.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 18
Feinberg, R., & Kadam, R. (2002). E‐CRM Web service attributes as determinants of
customer satisfaction with retail Web sites. International Journal of Service Industry
Management.
According to Feinberg et al. (2002), businesses use internet tool for CRM ( customer
relationship management) to measure customer satisfaction. As a matter of necessity, companies
are moving online. CRM has positively impacted customer satisfaction, loyalty, sales, and profit.
The study's conclusion suggested that e-CRM directly impacts sales and profit, and customer
satisfaction. Doing the supply chain online has many advantages for customer satisfaction. The
online supply chain enables a company to improve on-time delivery. Trust builds customer
loyalty. Every customer wants what they have purchased delivered faster and on time. A single
missed delivery can damage a company's reputation. The paper further states that it is essential to
meet the delivery promise and the expectations you have set with the customer. Companies can
improve on-time delivery by diversifying their delivery selections, proactive order management,
recovery, forecasting sharing with carriers, and adopting online appointment scheduling.
The online supply chain further helps in increasing speed-to-delivery with on-demand
fulfillment. According to Feinberg et al. (2002), customers start with a user experience
strengthened by the delivery promise. On-demand fulfillment makes business enterprises open
up fulfillment centers during peak seasons and temporary promotions to satisfy customers.
Zhang, Q., Vonderembse, M. A., & Lim, J. S. (2006). Spanning flexibility: supply chain
information dissemination drives strategy development and customer satisfaction—
Supply Chain Management: An International Journal.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 19
According to Zhang et al. (2006), a flexible supply chain model provides horizontal info
networks across the value chain to fulfill customer satisfaction. The document seeks to highlight
the benefits of an adjustable supply chain to customers. According to this book, the use of
modern technologized supply chain enhances visibility and track inventory. By increasing
warehouse visibility in the business enterprise supply chain is key to customer satisfaction. Just-
in-time inventory replenishment and other customer-focused strategies need to be implemented
to achieve customer satisfaction. A flexible supply chain makes delivery convenient during any
condition since the company can adjust in time. It also creates transparency and provides critical
data for business, which eventually improves customer service.
Ellinger, A., Shin, H., Northington, W. M., Adams, F. G., Hofman, D., & O'Marah, K.
(2012). The influence of supply chain management competency on customer
satisfaction and shareholder value. Supply Chain Management: An International
Journal.
According to Ellinger et al. (2012), supply chain orientation's strategic managerial idea
can offer completion advantage. Such supply chain management capability is crucial to customer
satisfaction and stockholder value. An adequate supply chain management will help satisfy
customer demand with an agile inventory strategy. Today's consumers are pressuring an urgent
need on how inventory is handled. Out-of-stocks and missing the delivery timeframes lowers
customer satisfaction. Business organizations often lack the competence to satisfy customer
demand. According to this document, agility allows supply chain managers to produce enough
products needed so that customers can get enough and a variety of products.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 20
The document further highlights the need to produce low-cost, high-quality products
differentiated in various ways like branding and packaging, to distinguish from possible
substitutes. It is a problem for commercial competitors when goods look similar since they will
go with what is available near them. Meeting customers' demands in time makes the customer
happy and ready to come again for a new service.
Stank, T. P., Keller, S. B., & Daugherty, P. J. (2001). Supply chain collaboration and
logistical service performance. Journal of Business Logistics, 22(1), 29-48.
According to Stank et al. (2001), service performance can be improved by integrating
external supply chain entities, which influences increased internal collaboration. When there is
customer and supplier collaboration, that s the first step to practical cooperation with the entire
firm. Through the partnership, managers can know the best ways to adjust their behavioral
change. Also, the arm-length SCM approach has been designed for focusing on market-price-
based competition. It is mostly concerned with long-term relationships and partnerships based on
trust. Collaboration does not only mean the integration between departments but also cultural
sharing. It can also be a collaboration between several firms trying to satisfy customers'
demands.
Further, collaboration has been established as the surest way of achieving customer satisfaction
and achieving high profits. It also enables companies to position themselves in a competitive
market by valuing their competencies correctly. From the study, it has been established that
effective SCM is essential in gaining competitive advantage and customer satisfaction. Sharing
risk and sharing information while maintaining long-term relationships with partners are crucial
CUSTOMER SATISFACTION AND SUPPLY CHAIN 21
motives for customer satisfaction. For any company that needs to satisfy its customers more,
collaboration must be enhanced. There should also be a complete integrated communication
between retailers, wholesalers, customers, and the company's supply chain management. By
doing this, there will be a proper flow of information on both sides.
Lam, C. Y., & Ip, W. H. (2011). A customer satisfaction inventory model for supply chain
integration. Expert Systems with Applications, 38(1), 875-883.
According to Lam et al. (2011), customer relationship positively influences inventory
management's performance in a supply chain, and customer loyalty also affects the number of
customer orders and demands directly. The document also highlights the importance of a
customer satisfaction inventory model that integrates customer relationship management into a
catalog model that adopts a customer relationship of retention. It helps determine both customer
satisfaction inventory level for replenishing the inventory level to fit best future customer
preferences and demand and a customer CSI value for finance performance from customers
purchasing life. The paper further explains the modeling and development of customer service
inventory. A well-managed supply chain enables a company to CSI level that can fully meet
demand and orders and reduce inventory cost and increase CSI value.
Sheikh, Z., & Rana, S. (2011). Role of third party logistics providers with advanced IT to
increase customer satisfaction in supply chain integration. In Society of
Interdisciplinary Business Research (SIBR) 2011 Conference on Interdisciplinary
Business Research.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 22
According to Sheikh et al. (2011), the central area of change is the widespread use of
third-party logistics benefactors who use advanced IT tools and the supply chain to improve
customer satisfaction. Companies can emphasize their core capabilities and other management
areas that cannot be outsourced through outsourcing. Happiness means one customer's sense of
dissatisfaction or joyfulness by comparing his perceptive effect on the product or service with his
expectations and desires (Sheikh et al., 2011). One of the essential elements in modern business
enterprises is a customer satisfaction strategy. Providing outstanding value and satisfaction to
customers, even to point beyond expectations, is critical to increasing the competitive market.
There are many reasons why customer satisfaction should lead to better performance. It indicates
the insulation of current customers from competitive efforts, reducing costs of attracting new
customers, increased customer loyalty, reduced product failure costs, and, more importantly,
enhanced goodwill for the firm.
Conclusion and recommendation
After evaluating a different aspect of supply chain and customer satisfaction, I would
recommend that all organizations implement effective supply chain management platforms to
enhance customer satisfaction. Therefore, all the organization's steps should consider its effects
on all consumers of different products and services. Besides, all organizational operations should
be centered on the activities of all consumers. To improve customer satisfaction, they must
enhance the supply chain by improving the supply chain's visibility and demand forecasting.
Lastly, I would recommend that all organizations should implement advanced and effective
inventory and distribution network. Improvement of business activities, as well as environmental
performance, can be achieved by prioritizing consumers.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 23
In summary, the research presents useful knowledge concerning customer satisfaction
and supply chain. The supply chain is instituted to create an effective working environment and
satisfy consumers of different products and services. Customer satisfaction is the primary
concern that all organizations are focusing on to increase market shares and reputation.
Therefore, customers should be a priority when conducting different activities with the
organization. To enhance customer satisfaction, companies should prioritize the development of
effective and customer-centric. Also, supply chain management and customer satisfaction
aspects have significantly evolved due to advancements in technology. The primary connection
between supply chain and customer satisfaction lies in the fact that the supply chain can
influence an organization on enhancing its services to consumers. Besides, functioning supply
chain management enables an organization to meet all consumers' expectations. Some of the
benefits of the supply chain in terms of customer satisfaction are that it facilitates the delivery of
products and facilitates eradicating errors experienced in the marketing sector. As suggested by
different researchers, supply chain management benefits make it more lasting in most
organizations' marketing sectors. By performing our duties in a more effective channel, it makes
customers and markets to be relevant to one another. However, attaining this aspect calls for
organizations to prepare and engage employees in decision making effectively.
For consumer prioritization, organizations should enhance the supply chain platform.
These activities can be improved by improving the visibility of supply and demand forecasting.
As proved, God presents an important aspect that enhances the development of the organization.
Although it might be argued that science is a separate discipline, God has enabled individuals to
utilize scientific ideas to present useful tools that enhance the marketing of resources. There
exists a significant connection between God's purpose of creation as well as the purpose of
CUSTOMER SATISFACTION AND SUPPLY CHAIN 24
business. About this, we work to fulfill our desires and work as per the primary purpose of
design. Concerning the creation story and supply chain and customer satisfaction, we must work
effectively to achieve God's definition of creation and customer demand.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 25
References
Chavez, R., Yu, W., Feng, M., & Wiengarten, F. (2016). The effect of customer‐centric green
supply chain management on operational performance and customer
satisfaction. Business Strategy and the Environment, 25(3), 205-220.
NAQVI, M. H., ASIM, D. M., & MANZOOR, S. (2020). ANALYSING THE IMPACT OF
SUPPLY CHAIN AGILITY ON CUSTOMER SATISFACTION THROUGH
RESPONSIVENESS AND INNOVATION. CenRaPS Journal of Social Sciences, 2(1),
26-40.
Yu, W., Jacobs, M. A., Salisbury, W. D., & Enns, H. (2013). The effects of supply chain
integration on customer satisfaction and financial performance: An organizational
learning perspective. International Journal of Production Economics, 146(1), 346-358.
El Shoghari, R., & Abdallah, K. (2016). The Impact of Supply Chain Management on Customer
Service (A Case Study of Lebanon). Management, 6(2), 46-54.
Omoruyi, O., & Mafini, C. (2016). Supply chain management and customer satisfaction in small
to medium enterprises. Studia Universitatis Babes-Bolyai Oeconomica, 61(3), 43-58.
Heikkilä, J. (2002). From supply to demand chain management: efficiency and customer
satisfaction. Journal of operations management, 20(6), 747-767.
Hadiyat, M. A., Wahyudi, R. D., & Sari, Y. (2017, August). Survival analysis for customer
satisfaction: A case study. In IOP Conference Series: Materials Science and
Engineering (Vol. 273, No. 1, p. 012029). IOP Publishing.
CUSTOMER SATISFACTION AND SUPPLY CHAIN 26
Madan, M., & Kumari, S. (2012). Determinants of retail customer satisfaction: a study of
organized retail outlets in Delhi. Delhi Business Review, 13(1), 117-126.
Levesque, T., & McDougall, G. H. (1996). Determinants of customer satisfaction in retail
banking. International journal of bank marketing.
Feinberg, R., & Kadam, R. (2002). E‐CRM Web service attributes as determinants of customer
satisfaction with retail Web sites. International Journal of Service Industry Management.
Zhang, Q., Vonderembse, M. A., & Lim, J. S. (2006). Spanning flexibility: supply chain
information dissemination drives strategy development and customer satisfaction—
Supply Chain Management: An International Journal.
Ellinger, A., Shin, H., Northington, W. M., Adams, F. G., Hofman, D., & O'Marah, K. (2012).
The influence of supply chain management competency on customer satisfaction and
shareholder value. Supply Chain Management: An International Journal.
Stank, T. P., Keller, S. B., & Daugherty, P. J. (2001). Supply chain collaboration and logistical
service performance. Journal of Business Logistics, 22(1), 29-48.
Lam, C. Y., & Ip, W. H. (2011). A customer satisfaction inventory model for supply chain
integration. Expert Systems with Applications, 38(1), 875-883.
Sheikh, Z., & Rana, S. (2011). Role of third party logistics providers with advanced IT to
increase customer satisfaction in supply chain integration. In Society of Interdisciplinary
Business Research (SIBR) 2011 Conference on Interdisciplinary Business Research.
