Analyzing Your Customers

I define a supply chain as “a complex system made up of people, processes, and

technologies that is engineered and managed to deliver value to a customer.”

Supply chain planning requires that you align plans with the needs of your

customers. Each customer is unique, and the better you understand your custom-

ers, the better chance you have of ensuring that your supply chain delivers the

value they expect.

Some customers have specific needs or tastes and are willing to wait  — and

pay — for a custom product that’s just perfect for them. These customers would

be dissatisfied with a generic product, even if it were cheaper and immedi-

ately available. If you have customers like these, you probably need to have an

engineer-to-order supply chain. Other customers are more interested in getting

the lowest cost, which might lead you to implement a make-to-order supply

chain. Still other customers need to have your product immediately, which forces

you to implement a make-to-stock supply chain. Understanding your customers’

expectations helps you make better decisions.

There are three common ways to analyze customer needs:

» Market segmentation

» Persona development

» Key customer analysis

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