From the course: Managing Logistics

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Differentiating your customers

Differentiating your customers

From the course: Managing Logistics

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Differentiating your customers

- I once worked for a major electronics company in the computer chip industry. When I interviewed, I asked what their biggest problem was, you know the kind of stuff that keeps managers up at night. They told me that they had difficulty delivering orders to their customers on the promised delivery date. Now I want to emphasize that expression, promised delivery date. In many cases, the customer placed an order with a requested delivery date that we couldn't meet. So we negotiated for a later date, which means the customer's already disappointed. The customer agreed to a later date, sometimes months later, and we promised to deliver on that date. So the customer would then go back and reschedule their business plan to accommodate this new date. They were counting on us to deliver as promised and we would consistently miss the date. As you'd expect, this ongoing problem began to affect our sales figures. Customers who…

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