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Consumer Focus Leads the Way to Excellence

Francis J. Quinn -- Supply Chain Management Review, 6/1/1997

One of the most powerful business maxims ever voiced is, "The Consumer Is King." But as with so many deceptively simple principles, it is sometimes only casually observed, or overlooked, or—worst case—intentionally ignored.

An intense end-customer focus is, of course, central to every process area of the organization. Yet nowhere is it any more important—or more critical to overall business success—than in supply chain management. How well a company swiftly, accurately, and cost effectively responds to consumer demand at every point in the chain ultimately determines the success of the enterprise.

Yet all too often, sourcing and purchasing decisions are made that constrain the ability to react quickly to changing buying patterns. Outdated forecasting techniques leave inventory imbalances in key market areas. Transportation and warehousing decisions are made with little regard for implications upstream or downstream. These kinds of shortcomings all detract from the ultimate goal of a satisfied customer.

That imperative to consider the consumer as king is a recurring theme in this issue. The feature articles talk about leveraging customer-oriented supply chain excellence to profitably grow the business. They outline the habits of successful supply chain organizations, noting that the preponderance of these traits—like spending money on supply chain activities that have real end-user value—embody a winning "outside-in" perspective. And they describe how one innovative company built a separate supply chain division with one overriding goal: To support corporate growth strategies while providing the highest level of customer service.

Companies struggling to implement a consumer-oriented supply chain will benefit from the discussion of dynamic demand management, which offers valuable advice on balancing production with consumer demand. Similarly, the article on electronic commerce, perhaps the most intimate of consumer-seller interactions, points the way to success in the direct purchasing environment.

For those who continually keep in mind the primacy of the end customer—and for the rest of us who need to be reminded from time to time—we offer you this issue of Supply Chain Management Review.

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