CUSTOMER SATISFACTION

If you are a manager of integrated materials management, what would you do to achieve the your firm's strategy, which is make-to-order (Just-In-Time method) or made-to-stock (inventory)?

Yes, you have to fulfill TWO (2) main objectives, which are:
1. Customer satisfaction
2. Minimum total materials cost

When we talk about satisfying customer, the first thing that will cross on our mind is about making people or animals happy (bear in mind animals are also some kind of customer, just like us). And describing customer satisfaction will make us out of our mind because different human being may have different thoughts (except for animals, they have brain but no thought).

From the definition stated in Purchasing and Supply Chain Management book (as we agreed), is the idea of customer's demand that is satisfied without delay or received as promised. Based on our source of reading, we concluded that there are SEVEN (7) elements of satisfaction.

1. Material Availability

This is the main aspect in satisfying customer, by producing or distributing sufficient inventory. This element may vary from various aspects like density of population and demand. Dense population will have high demand of products and immediate shipment that result the availability of materials is very critical.

2. On-Time Shipment

Every delivery or shipment must based on promised date made before (date of receipt is not important at all), but now customer is very concerned about when the materials are received.

3. On-Time Receipt

Yes, to satisfy the customer you have to deliver and send the material based on needed dates. The material that received by customer on time on the most critical time, will satisfy them.

4. Complete Shipment

The material that has been sent must matched with the details in the order made by customer.

5. Quality of Receipt

Yes, the material that arrives must be in good condition and exactly the same with the order made before.

6. Flexibility

An action in which the supplier can receive and accept every single customer's request because every customer may have different needs and wants. The supplier must face any changes happen in the product.

7. Responsiveness to Inquiry

Every feedback given by customer, is it good or bad must be reply and response to the inquiry. Solving the customer's problem will increase the supplier's interest that will reflect to firm's profit.

In conclusion, defining customer satisfaction is too hard to us.To conclude, customer want:

- Short lead time
- Good quality
- High value
- Customized products
- Post-sale service (after sale service)