CeMAT Insider

Can your supply chain improve customer loyalty?

Posted by CeMAT Team on 12-Jul-2016 09:19:24


The challenge many businesses are facing in a world dominated by online giants such as Amazon and Kogan is improving customer loyalty.

With a network of over 850 service centres, CHEP knows all too well the importance of building and maintaining strategically building customer loyalty through great supply chain management. 

So how can businesses get customers to re-purchase from them in-store, rather than seeking out the best price online?

According to Justin Frank, Director, Strategy and Marketing ANZ at CHEP, the answer lies in ensuring on-shelf availability.

Here we take a look at merchandising and replenishment, and building solutions fit for automation to help you build customer loyalty.


Merchandising and replenishment

CHEP takes a different view of supply chains by addressing the differing needs of its customers in varying industries. According to Justin, replenishment and on-shelf availability is a key driver to the success of many retailers.

Not being able to replenish your shelves quickly and efficiently doesn’t just mean you lose out on a sale, it makes the difference between a smiling face or an unhappy face for a customer.

Seeing their favourite brands on the shelves is incentive enough for them to return to your business, rather than waiting for their favourite products to ship from overseas. 

In light of all this, retails brands are looking to improve dollar per square metre by selling more within less space, and reducing waste at each node. This means having the most efficient way of displaying and refilling your products in-store.

Quarter pallets help retailers create innovative displays that can be quickly assembled. These pallets are great if you have a product that can be stacked on your show floor quickly.

Eckes-Granini Group was able to reduce their cardon footprint and cut it’s CO2 emissions by utilizing a quarter pallet system because they were able to reduce fuel consumption and they are easier to handle.


Building solutions fit for automation

Optimising automated supply chains relies on the optimal flow of goods so you can provide your customers with their favourite brands on the shelf when they need it.

Addressing the needs of the customer should be one of the first steps in the optimisation of your supply chain. 

Due to new high bay automation dimensional tolerances, the rejection rate of pallets for some business has become a financial and time-consuming burden.

You need to ensure that everything in your supply chain is running smoothly. This means everything from picking and packing, and the to tolerance of your pallets.

Ensure your pallets are tested for lead board push back, centre alignment of the middle board and having the correct tolerances on the width of the board.

Another way to ensure optimal flow of goods through your supply chain is by improving space on the warehouse floor.

Consider using pallets that are created specifically to save warehouse floor space help to reduce replenishment cots and improves on-shelf availability for customers.


Final thoughts

Building better supply chains means putting the needs and loyalty of your customer at the heart of the supply chain. Not being able to sell a product on-shelf at the time the customer needs it, not only costs you a sale at that point in time, but it erodes customer loyalty.

There are a range of supply chain solutions available to businesses today that help them deliver those products efficiently and on time. Solutions such as qarter pallets enable you to stack products on the show floor quickly and easily.

But the main take-away here is that improving on-shelf availability not only helps businesses improve customer loyalty, but it also helps businesses sell more within less space. 

Topics: Supply Chain Management