Towards improved customer satisfaction and retention in the supply chain : an empirical study

Organisations in supply chains face challenges in achieving competitive advantage. With the growing affluence of customers and rising standards of living, it is imperative for organisations to find strategies to continuously attain high levels of customer satisfaction (Morgan, 1996). This may entail customising products and services and various activities to meet individual customer needs (Wheelwright and Sasser, 1989; Lado et al, 1992; Hayes and Pisano, 1994). The objective of this paper is to investigate the initiatives developed to enhance customer satisfaction and retention in Distribution Centres as a service-centred view of relationship marketing. The empirical research involved detailed exploratory case studies of ten Distribution Centres, primarily employing qualitative data collection and analysis methods. Semi-structured interviews were conducted with twenty-three managers in these ten organisations together with visits to observe the operations of the Distribution Centres. The case studies showed firms’ commitment to customer satisfaction and retention in various ways such as being flexible, anticipating demand, collecting information and identifying new and different ways to satisfy customers. This study provides insight into firm-based activities required to pursue competitive advantage in logistics firms and provide useful recommendations for managers who are seeking to develop competencies for successful marketing strategies.