How effective are customer-centric approaches in improving supply chain efficiency and reducing costs?
Best insight from top research papers
Customer-centric approaches play a pivotal role in enhancing supply chain efficiency and reducing costs. By focusing on customer needs and demands in real-time, firms can optimize productivity, improve customer satisfaction, and achieve better corporate performance. Implementing customer-centric strategies leads to cost reduction, increased sales, market share, and profitability. Additionally, customer-centric supply chains emphasize responsiveness, resiliency, reliability, and realignment among partners, ultimately delivering superior service at a lower cost. Studies highlight that a customer-centric retailing approach can significantly impact supply chain profit positively, especially when dissatisfying costs are considered. Therefore, integrating customer-centricity into supply chain processes not only enhances efficiency but also contributes to cost savings and overall performance improvement.
Answers from top 4 papers
More filters
| Papers (4) | Insight |
|---|---|
1 Citations | Customer-centric approaches improve supply chain profit by enhancing efficiency. When dissatisfying costs are managed, organized retailers benefit more, leading to overall cost reduction and increased profitability. |
5 Citations | Customer-centric approaches, like mobile phone reverse logistics, enhance supply chain efficiency by prioritizing customer satisfaction, leading to cost reduction and competitive advantages through effective implementation and feedback utilization. |
| Customer-centric approaches in healthcare, like optimizing product presentations for monoclonal antibodies, can enhance supply chain efficiency by reducing drug wastage and lowering administration-related costs. | |
03 Nov 2022 | Customer-centric approaches, like CFSCS with the 4Rs model, significantly enhance supply chain efficiency by meeting real-time consumer demands, reducing costs, and boosting customer satisfaction in the apparel industry. |
Related Questions
What is customer-centric approach?4 answersA customer-centric approach is a strategic method that aligns a company's products and services with the desires and needs of its most valuable customers. This approach involves focusing on enhancing customer satisfaction and tailoring offerings to meet individual customer needs and expectations. In the context of private security companies, customer satisfaction surveys play a crucial role in assessing the financial and economic aspects, as well as the motivation of individuals and legal entities to purchase protection and security services. In the healthcare sector, customer-centric product presentations for biotherapeutics aim to improve dosing experiences, reduce costs, and shift treatments to more flexible care settings. Research also indicates that adopting a customer-centric approach in retailing can lead to higher total supply chain profits, especially when both organized and unorganized retailers independently implement customer-centric strategies.
How can artificial intelligence be used to improve supply chain efficiency and effectiveness?5 answersArtificial intelligence (AI) can be used to improve supply chain efficiency and effectiveness in several ways. Firstly, AI can help in risk management by analyzing data from various sources to identify potential risks and suggest strategies for managing them. Secondly, AI can aid in fraud detection by analyzing large volumes of data in real-time to spot deviations that may indicate fraud, helping companies prevent fraud and minimize losses. Thirdly, AI can optimize working capital management by analyzing data on inventory levels, order volumes, and payment terms, enabling companies to optimize cash flow and improve their working capital position. Lastly, AI can improve supply chain efficiency by analyzing data on order volumes, shipping times, and other factors to identify opportunities for process improvement and cost reduction. These applications of AI in supply chain finance can enhance financial performance, reduce costs, and increase overall competitiveness.
How can artificial intelligence be used to improve supply chain efficiency?5 answersArtificial intelligence (AI) can be used to improve supply chain efficiency in several ways. Firstly, AI can optimize working capital management by analyzing data on inventory levels, order volumes, and payment terms, helping companies optimize cash flow and working capital position. Secondly, AI can enhance supply chain optimization by analyzing data on order volumes, shipping times, and other factors, identifying opportunities for process improvement and cost reduction. Thirdly, AI can streamline processes and improve decision-making by analyzing real-time data, enabling faster and more accurate decision-making. Lastly, AI can improve supply chain management by providing tools for managing functions across all stages of the supply chain, transforming supply chain management. By leveraging the power of AI, companies can enhance supply chain efficiency, reduce costs, and improve overall competitiveness.
The success of businesses that successfully use the customer-centric paradigm?5 answersThe success of businesses that successfully use the customer-centric paradigm is driven by their ability to align all corporate activities, including business processes, with customer needs. By designing customer-centric business processes, companies can increase customer satisfaction, which is a key driver of corporate success. Customer-centric retailing, when implemented independently by both organized and unorganized retailers, leads to higher total supply chain profit compared to collaborative processes. Prioritizing process improvement projects based on their impact on customer centricity can also contribute to the success of businesses. Additionally, understanding customers' concerns and perceptions of security and privacy in e-commerce applications can help organizations develop policies and improve technological infrastructures, leading to increased customer trust and usage of e-commerce services. Overall, adopting a customer-centric approach in various aspects of business operations can contribute to the success of businesses in different industries.
How can e-supply chains be optimized to reduce costs and improve efficiency?5 answersE-supply chains can be optimized to reduce costs and improve efficiency through the use of artificial intelligence (AI) technology. AI can enable real-time price adjustment with suppliers, reinforce information exchange, and automate warehousing processes using Automated Guided Vehicles. Deep learning techniques can also be applied to supply chain management systems, such as demand forecasting, supply forecasting, text analytics, and price planning, to provide accurate information and prediction. Additionally, the implementation of blockchain technology can improve the reliability of supply chains by verifying business processes and contractual obligations cryptographically using smart contracts. By leveraging these technologies, e-supply chains can achieve cost reduction, efficiency increase, and sustainable business development.
What are the most effective procurement strategies for reducing costs?3 answersThe most effective procurement strategies for reducing costs include implementing change strategies, utilizing electronic procurement systems, effective inventory management, and competent procurement employees. Another strategy is to combine enterprises into purchasing groups to unlock cost savings through economies of scale. Additionally, considering design parameters and construction techniques can help reduce costs while maintaining the efficacy of wildlife overpasses. It is also important to pay special attention to supply chains and make efforts to strengthen and optimize them, as effective procurement management can reduce overall costs and increase profitability. Furthermore, inviting more bidders and choosing type-specific cost-minimizing reserve prices can significantly reduce procurement costs. These strategies can help organizations define long-term goals, improve procurement processes, and achieve cost reductions.