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The impact of supply chain management on customer satisfaction

Supply Chain

Blog Date
March 24,

Supply chain management (SCM) is critical in ensuring customer satisfaction. It is the process of managing the flow of goods, services, and information from the point of origin to the point of consumption. A well-managed supply chain ensures that supply chain visibility is top-notch, ensuring products are delivered to customers on time, at the right price, and with the desired level of quality. It involves all the necessary activities to ensure that products or services are delivered to customers in a timely, cost-effective, and efficient manner.

Supply chain optimization is important for businesses for several reasons: 

  • It helps to reduce costs by optimizing inventory levels and streamlining operations. 
  • It helps to improve the quality of products and services by ensuring that suppliers are reliable and meet the required standards. 
  • It helps to increase customer satisfaction by ensuring that products are delivered on time and in the desired condition.

A good SCM course helps you learn essential SCM concepts and practices, such as supply chain network design, necessary for businesses to manage their supply chain effectively. Some of the key topics covered in an SCM course include demand forecasting, inventory management, procurement, logistics, transportation, and distribution. Taking an SCM course will teach students how to apply these concepts and practices in real-world situations. 

To know more, read Why choose an MBA in Supply Chain Management?

Best supply chain management strategies

There are various strategies that companies can use to manage their supply chain effectively. Here are six of the best supply chain management strategies:

  1. Lean Supply Chain Management: Lean SCM is a strategy that focuses on eliminating waste in the supply chain by streamlining processes and reducing unnecessary inventory. This strategy involves continuous improvement efforts to eliminate bottlenecks and reduce lead times.
  2. Agile Supply Chain Management: Agile SCM is a strategy that focuses on flexibility and responsiveness in the supply chain. This strategy is particularly useful in fast-changing markets, where companies need to respond quickly to changing customer demands or market conditions.
  3. Outsourcing: Outsourcing is a strategy that involves delegating certain activities or functions to external suppliers. This strategy can help companies reduce costs and improve efficiency by leveraging the expertise and resources of specialized suppliers.
  4. Supplier Relationship Management: Supplier relationship management (SRM) is a strategy that focuses on building strong relationships with suppliers. This strategy involves working closely with suppliers to improve communication, increase collaboration, and identify cost reduction and process improvement opportunities.
  5. Supply Chain Risk Management: Risk management is a strategy that involves identifying and mitigating risks in the supply chain. This strategy involves identifying potential risks such as supply chain disruptions, natural disasters, or geopolitical events and implementing strategies to mitigate these risks.
  6. Continuous Improvement: Continuous improvement is a strategy that involves ongoing efforts to improve supply chain processes and performance. This strategy involves using data analytics and other tools to identify areas for improvement and implementing changes to drive ongoing improvement in the supply chain.

The impact of SCM on customer satisfaction

The following are the ways in which SCM impacts customer satisfaction:

  • Improved product quality and consistency: SCM involves selecting the right suppliers to provide high-quality materials and components that meet the company’s quality standards. By choosing reliable suppliers, companies can ensure that the products they manufacture are consistent. 
  • Faster delivery times and more accurate delivery estimates: SCM also involves managing the transportation and logistics of products to ensure timely delivery. Companies can enhance customer satisfaction and build trust and loyalty by delivering products on time. 
  • Enhanced communication and transparency:  Enhanced communication and transparency can improve collaboration, facilitate timely information sharing, improve supply chain risk management, enhance customer service, and increase efficiency in the supply chain. By prioritizing communication and transparency in their SCM practices, companies can improve their overall supply chain performance and enhance customer satisfaction.
  • Greater product variety and customization options: Greater product variety and customization options in supply chain management (SCM) can provide several benefits to businesses, including increased customer satisfaction, improved competitiveness, and higher profits. Businesses need to ensure that their suppliers, manufacturing processes, and logistics operations can accommodate the increased complexity and variability of the products. 
  • Improved after-sales service and support: Improved after-sales service and support in supply chain management (SCM) can benefit businesses, including increased customer loyalty, higher retention rates, and improved brand reputation.  

Gain essential SCM skills with MUJ’s online MBA in SCM

MBA in Supply Chain Management (SCM) is a comprehensive program offered by Manipal University Jaipur (MUJ) that equips students with the essential skills and knowledge to manage supply chain operations effectively. Here are some key features and highlights of the program:

  1. Curriculum: The program’s curriculum is designed to provide students with a strong foundation in supply chain management concepts, practices, and technologies. The curriculum covers a wide range of topics, including logistics management, inventory control, procurement, quality management, and supply chain analytics.
  2. Online learning: The program is delivered entirely online, allowing students to study at their own pace and convenience. The online learning platform provides students with access to lectures, study materials, assignments, and opportunities to interact with faculty and peers.
  3. Placement support: Online Manipal provides students with placement support, helping them to find job opportunities right after completion of their program.
  4. Recognized degree: The MBA in SCM program is recognized by the University Grants Commission (UGC) and accredited by the All India Council for Technical Education (AICTE), ensuring that employers widely recognize and accept the degree in India and abroad.

You can also read, What will you learn in an MBA in Supply Chain Management?


In conclusion, SCM is crucial for businesses to ensure customer satisfaction. A well-managed supply chain can reduce costs, improve product quality, and increase customer satisfaction. An SCM course can provide students with the essential knowledge and skills needed to manage the supply chain effectively, including demand forecasting, inventory management, procurement, logistics, transportation, and distribution. By applying these concepts and practices, businesses can ensure that their supply chain is efficient, cost-effective, and customer-focused.


Information related to companies and external organizations is based on secondary research or the opinion of individual authors and must not be interpreted as the official information shared by the concerned organization.

Additionally, information like fee, eligibility, scholarships, finance options etc. on offerings and programs listed on Online Manipal may change as per the discretion of respective universities so please refer to the respective program page for latest information. Any information provided in blogs is not binding and cannot be taken as final.

  • TAGS
  • Master of Business Administration
  • Online MBA
  • Supply Chain Management

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