At our Customer Supply Group Meeting, we discussed how companies were reacting to their Advantage Survey Report feedback, exploring those elements which companies found hardest to influence and the strategies employed to improve their customer journeys and relationships.
Our own research revealed suppliers largely received high scores on customer service and delivery commitments, with most already achieving the required standard, or having plans to address them.
Differentiation emerged as one of the most challenging competencies for suppliers to influence, with many finding it difficult to meet requirements. The premise of differentiation lies on suppliers tailoring their service offering to their customer’s requirements and offering a level of differentiation from their competitors. It was agreed that this can only be achieved via a cross-functional alignment rather than just a supply chain, logistics or customer service offerings.
Another common challenge, also widely discussed in our sessions throughout the year, combines communication and collaboration (especially on planning and forecasting).
Addressing the Challenges to Supplier-Retailer Communication and Collaboration
Despite some growth in face-to-face interactions post-COVID, the overwhelming shift from face-to-face to on-line meetings remains a key challenge. Implants are far less common, and ad hoc meetings with customers are increasingly becoming the norm. With increased buyer churn and less experience and support from their managers, buyers now shoulder broader responsibilities and face increasing challenges in allocating time for in-person meetings, making it even harder to build trust.
Against this backdrop, suppliers highlighted the increasing value of in-person meetings for fostering relationships and the limitations of online interactions which tend to be much more transactional. This was echoed at the recent GCA conference, where Code Compliance Officers also advocated for increasing in person interactions. To tackle this challenge some suppliers are building face-to-face interactions into their JBPs and KPIs.
Consistency in messaging and cross-functional alignment are also crucial to improve relations. Historically, there has been a hesitance to share disappointing news. However, early communication of a unified, clear message however disappointing, is easier for the customer to manage and enhances greater trust.
Aligning supply metrics to retailers was another critical takeaway - reporting metrics to retailers in their own language and concepts, while having a corresponding report aligned to internal metrics.
The Advantage Survey underscores the importance of continually reviewing your customer strategies, by identifying areas where peers are perceived to be doing better. Many members now undertake a full internal cross-functional analysis of the survey results, developing a joined-up action plan with clear objectives, metrics and full functional accountability, to help improve survey performance the following year.
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To find out more about the Customer Supply Group and the opportunity to learn from peers, identify best practice and process improvements and discover opportunities for logistics collaboration, click here.
