Question

Explain Adaptability versus Flexibility in the Supply Chain.

When it comes to Service Recovery, what are the key aspects an organization must address?

Answer 1

Supply chain can be considered as the network that exists between the organization and the suppliers, in distributing the products to the end customer. The supply chain would differ for different organizations depending on the product being produced and the target customers.

Adaptability of the supply chain: The business environment is turbulent and keeps changing. The changes can be because of the change in the customer demands or the changes in the marketing strategies. The global organizations however, should be able to adapt themselves to the unpredicted changes. The organization may be required to increase or decreasing the number of supply chains. Even if the steps taken would be costly to the organization, the customers will be offeref with the best distribution experience. This would help in enhancing the reputation of the organization.

Flexibility of the supply chain: As the organizations are left with no options other than making changes within themselves to survive in the competitive market, the one that makes the changes faster would gain most out of the market. Flexibility of the supply chain is the fastness with which the organization changes itself according to the changes in the market. Adaptability can be a slow process but felxibility should be faster so as to benefit from the competitive advantage.

Service Recovery: The effectiveness with which the products or services are distributed to the customers can be referred to as the service recovery. If there is a delay in the delivery or product or if the distribution is not smooth, there can be chaos between the distrubution channels and the customer.

Aspects that should be considered by the organizations in service recovery: The organizations should develop strategies that could retain the customers. There are multiple options for the customers to choose from. Some of the aspects that has to be considered by the organization are:

• Understanding customer needs and demands: The products and services should be developed based on the demands and needs of the customers. If the customers find the product satisfying, they would go for it.
• Considering their emotions: The distribution channels should consider the emotions and feelings of the customers. The delivery should be with respect and the quieries of the customers should be answered politely.
• Shouldering the responsibility of mistakes: Mistakes can happen from the side of the executives. The dignified manner of resolving it is to shoulder the responsibility and do the corrective action. Apologizing for the mistakes will not hamper the relationship with customers, infact it would strengthen it.
• Offering alternative solutions: The organizations should cosider offering alternatives to the damages caused. It can be replacement of the product or refunding the amount to the customer. These actions will help in creating trust for the organization among the customers.