We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Customer Satisfaction Essay Sample

  • Pages: 6
  • Word count: 1,455
  • Rewriting Possibility: 99% (excellent)
  • Category: customer

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Introduction of TOPIC

1. Introduction

According to Retail Glossary of Terminology Online a customer is a person that purchases merchandise or a service. The more complex definition of a customer was given by Dale M Lewison the customer becomes accustomed to buying from seller and is established through purchase and interaction on frequent occasions over a period of time. From the following the logical conclusion is that supermarkets only consider customer relationship because buyers by now have already become customers.

Without a strong record of contact and repeat purchase the person is not a customer but the person is a “buyer”(Lewison 1997). Customer added value characteristics such that the shopping mission is satisfactory and both tangible product characteristics and added value characteristics together make an offer to the customer which is clearly preferred to that of any competitor (Walters 1994). In simple words this quote basically determines what is a customer satisfaction.

Although all economists still have not agreed on the precise definition of Supply Chain Management some of those should be considered in this assignment

Supply Chain Management can be described as the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of final consumption for the purpose of conforming to customer requirements (Eastham et al 2001).

Supply Chain Management at the execution level is critical to ensure your logistics strategy is being effectively executed. Data availability, sharing and networked connectivity are driving this new discipline forward supported by the advanced systems now available (All you need to know about logistics website).

2. Defining customer satisfaction on Supply Chain Management

Firstly we need to identify the key factors of customer satisfaction expectations i.e. ” the factors which create added value”(Walters 1994). These are said to be Speed, Price, Variety, Availability, Demand for customer service and convenience.

With respect to Speed factor companies should accept Just-in-time (JIT) principle i.e. the ability to deliver just-in-time not only saves working capital (through reducing inventory levels) but also has a significant impact on the ability of an operation to improve its intrinsic efficiency(Cox et al 2003). This is especially relevant for the food retailers because food is highly perishable and customers are satisfied when they get only fresh produce.

The demand for the majority of food products is elastic (Sloman et al 2001), thus the company should attempt to establish prices as low as possible. Therefore supply chain has to be managed as efficient as possible.

Food supply chain is further controlled by the major retailer (Tesco, Sainsbury, ASDA) in ways of ever increasing number of own label products, store loyalty cards, in-store promotions and more recently home delivery services( Eastham et al 2001).

As it follows from the experience of Tesco’s supermarkets (Mintel 2003) customers strongly appreciate the variety of available products.

According to Mintel 2003 report customers agree to pay more for quality which that in order to bring them satisfaction supply chain manager needs to ensure that the retailer

3. The problems that rise in the process of achieving the customer satisfaction.

Sorry, but full essay samples are available only for registered users

Choose a Membership Plan
style="text-align: justify;">The problems which arise in Supply chain management can be identified as follows:

* Unstable Supply from the suppliers (yield in farms unpredictable)

* Variety of products is highly competitive

* Perishable products (short storage period)

* Seasonal factors – fluctuated demand

* Quality control (food damage or perish during transportation)

Factors which have to be ensured at constant level just show how difficult it is to achieve perfect supply chain in food retailing. At the same time those problems are being considered by major supermarkets all the time

Aldi chain of stores has undertaken most problems above by establishing a low cost operation throughout the supply chain. Establishing such supply chain has made ALDI the number one low cost operator in Europe

With just one size and variety available of most grocery products – whether it be baked beans, washing-up liquid or orange squash – customers are able to navigate the store quickly and easily, without having to spend time considering which to buy out of a wide range of similar items. Product quality is said to be comparable to that of branded goods and sizing is determined by consultation with a panel of consumers.

Tesco’s supply chain on the other hand is much more complex than ALDI’s. Tesco has 22 distribution depots in the UK, occupying around 515,000m2. To support the development into non-foods, a new 46,500m2 depot has been built in Milton Keynes. It features the latest handling and price-labelling systems for a wide range of products, including clothing. A new Internet ordering facility also opened at Watford (Mintel 2003).

Tesco has a strong own label, which includes approximately 20,000 food and non-food products at present. For this purpose own brand is virtually everything which is not branded, so it includes all fruit, meat, and service counter products such as meat and delicatessen.

Supply Chain companies like Exel usually manage supply for big supermarkets. Tesco is seeing its solution in supplying goods but it is working together with Exel to achieve it’s full potential and gain experience of Exel logistics. Distribution centre in Didcot is the main one for Tesco’s and operated by Exel. They have reported some key performance indicators:

* Warehouse Productivity: 85.85 cases per hour worked “Best in Class”

* Accuracy: 3 errors per thousand cases

* Absence: Budget 6% Warehouse staff

* Agency usage: guaranteed controls in place

* Delivery on time: 90% target, 30 minute delivery window of scheduled booking

* Units per trip: 1,070 cases per trip

* Transport productivity 166 units per Driver Hour

* Absence: 4.5% for drivers

Exel is one of many logistics companies on offer with experience in logistics and food retailers more often use their services.

4. Recommendations.

Improve Operation Efficiency by Identifying Cost

By adopting the Total Cost Concept, analyzing of the true costs of distribution can often lead to the identification of more efficient ways of operating (Stewart, 1992). To work out a detailed costing of distribution and allows the search for “trade-offs” between one area of costs and other areas (Stewart, 1992), for example, in food retailing, trade-off between keeping freshness of food, that means, the quality of products (which hold the level of customer satisfaction directly affecting sales) and the cost of keeping the quality like more frequent deliveries to the store. After identifying the costs, trade-off can be done to balance between the costs, which means to find out a cost and service balance (Stewart, 1992), like in the example optimal level of maintaining certain level of freshness may identify, then work out a more optimal frequent of deliveries to perform more efficient use of cost and the whole distribution system. Nevertheless, clear identification of the costs can indicate the problems in the Supply Chain, in the certain extend, after identifying problems measures can be worked out to improve efficiency and achieve cost savings.

Benchmarking with Competitors

Benchmarking (Lynch, 1997) with the competitors can be done to identify the possible measures to solve the problems and improve the operation in Supply Chain Management, in the same time, to maintain and strengthen the competitiveness in the market. In the case of Tesco, benchmarking with major competitors like Sainsbury, ASDA can be done. Sainsbury, for example, a operational distribution report is done for past 24 hours, summarizing performance in distribution, then, problems have to be identified and take instant correction actions, this helps to maintain the quality of performance in its Supply Chain (Stewart, 1992), like problems of stock-out can be prevented and keep their customer satisfaction with products availability.

Customer Satisfaction and Supply Chain Management – Linkages and strategic advantage in food industry.

We can write a custom essay on

Customer Satisfaction Essay Sample ...
According to Your Specific Requirements.

Order an essay

You May Also Find These Documents Helpful

Service Delivery to HR Customers

For this assignment, CIPD HR Profession Map will be used to understand the knowledge, skills and behaviours required to be an effective HR practitioner. It will summarize how the HR practitioners can use the HR profession map the 10 professional areas, 8 behaviours and 4 bands. It will then identify and describe one professional area in detail and describe three activities by giving examples and explain behaviour required for this area. (CIPD Profession Map, 2015) The CIPD Profession Map on the CIPD website is a self-assessment tool for HR practitioners. It is a great way to determine career progression in HR for individuals. The map shows how HR is linked to continuous organisation’s performance and designed accordingly to suit all sectors and organisations of all aspects. The architecture of profession map covers 10 professional areas and 8 behaviours and 4 bands of competency level starting from band 1 to band...

Marketing Theories - The 7 Ps of...

Before a strategy can be implemented, it is important to utilize the marketing mixes 4 P’s and in some cases the 7 Ps. Although many businesses may have their own way of interpreting the market mix, the outcome will invariably be the same. Wright, M and Watkins, T (2010) mention that the aim of the mix is to help both consumer and seller and once used effectively, helps form a successful marketing strategy. Place – It is important to position any business in the correct location to focus activities. This can, however, vary on the needs of the business and many factors need to be considered. For example: a business currently expanding due to growth, may position itself close to a rival in an attempt to drive them out of business, enabling them to increase its share of the available market or simply seek an area with little or no...

Customer satisfaction of street foods in barangay

  Nowadays, street foods trade become great in numbers, wherever you look there are many street foods to see, such in market, schools, park and other public places it is sold by vendors and hawkers from a portable stall, Other calls it “tusok tusok” because it is ready to eat food that can easily sustain the basic energy of people especially, people who always in hurry, also street foods is convenient and low in price, everyone enjoy it especially students and worker who wants a cheap price of food and can afford to their budget, and it provides employment and income to many persons with a little education and training. Street foods or Pagkaing kayle become part of culture and lifestyle of Filipino, some of the street foods are sold already prepared while other are cooked on the spot, street foods feed millions of people daily with a wide variety...

Popular Essays


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?