In today's world where the supply chain is always evolving, it's critical for managers to remember that their role is more important than ever. It's more than managing the chain for efficiency, it is about customer delivery and assuring a more satisfying customer experience. That change in mindset – from efficiency management to customer experience – is significant and gives supply chain managers a more significant seat at the table.
The dedicated focus on the end consumer's experience does three things.
1. The journey to understand that focus tells you what your business model really depends on. Too many companies don't understand what customers really value and as a consequence spend a lot to develop low-value innovation, such as car manufacturers loading their cars with more features that customers don't use – a phenomenon known as marketing myopia.
2. Knowing who your ultimate customer is empowers you to know how to allocate resources, and it gives the power to impart a focused vision to be shared with subordinates, suppliers, and customers.
3. Knowing your supply chain's ultimate customer is the first step on the road to excellence. Focused excellence at the right price gets back to the basic rule of profitability: customers generally pay for more value even over lower cost or higher features, especially in business markets. Just keep in mind that customers don't like to pay more for more of what they don't need.
The most successful supply chain leaders KNOW the answer to the question, “Why am I doing this?” Contribute effectively to that final customer's experience, and you will find success in 2017 and beyond.
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