Supply Chain Loyalty: what it is, how it works
The supply chain is sometimes left out of companies' loyalty strategies. However, building loyalty can bring great benefits to both parties.
Since in organizations the word "loyalty" is almost always accompanied by "customers", it is common for other forms of loyalty to be forgotten, as is the case with Supply Chain Loyalty.
This term basically refers to loyalty actions aimed at the members of a company's supply chain: suppliers, manufacturers, distributors, transporters, sales channels, among others .
And the advantages of this strategy are numerous. One of them is the reduction of costs and risks, since a good relationship with this audience allows you to optimize processes, avoid waste and mitigate problems before they even happen.
In addition, everyone will work together to increase productivity and guarantee the quality of the products/services offered, which has a direct impact on customer satisfaction.
With trusting relationships and long-lasting links with members of the supply chain, new business will also emerge more frequently.
A global car manufacturer sets out to maintain a good relationship with the participants in its supply chain - in particular, its suppliers.
This involves a great deal of information exchange, mutual suggestions for improving performance and even investment in assets .
The company is also investing efforts in spreading its lean production model, focusing on eliminating waste and increasing production efficiency .
In the United States, Europe and Japan, Supplier Support Centers have been set up to act as educational institutions so that suppliers can learn more about the production model and apply it in their factories.
How to create a Supply Chain Loyalty strategy
We understand that the supply chain can include several important members, which is why we have listed fundamental tips that can and should be applied to all of them, from suppliers to sales channels, with the aim of building loyalty:
- Communicate clearly
Clear and objective communication can mitigate conflicts and help solve potential problems and challenges together. This is the first step towards maintaining a transparent and lasting relationship with suppliers.
- Offer strategic partnerships
In addition to the existing buying and selling relationship, propose other forms of partnership between your company and suppliers in order to add value to both businesses: lectures, training sessions, joint marketing actions, etc.
- Be flexible
Remember that your supplier also has specific expectations and needs. Therefore, use the principle of clear communication and practice flexibility, being open to negotiations so that the demands of both are met.
The concepts presented above are directly related to Total Loyalty, a market novelty that will transform the way companies create loyalty strategies for their customers, employees and supply chain.
Want to stand out and bring the future of loyalty to your company? Download our eBook on Total Loyalty for free!
We create and manage loyalty ecosystems that connect brands and customers, generating the engagement necessary for the development of your business.