Supply Chain Loyalty

jkurtzman News

What is a supply chain?

A supply chain is a relationship network tree representing a one-way flow of physical value from the production base through branches and sub-branches until finished goods inventory reaches end consumption.

The supply chain is made up of:

  • Supply chain managers
  • Subsidiaries
  • Wholesalers
  • Delivery services
  • Retail merchants
  • Consumers

Enhanced supply chain visibility is an increasingly pivotal component for brand awareness and loyalty, with experts predicting that by 2020, the supply chain will be fully oriented toward customer expectations, Supply Chain Brain reported.

As consumer expectations and technology evolve, providing a customized experience to drive loyalty becomes increasingly difficult. One Bain & Company study found that 68% of respondents said customers are less loyal than they used to be.

Predominantly, there are two types of loyalty and rewards programs.

  1. There are loyalty programs which rewards repeating loyalty by a customer to a brand, merchant, or service provider.
  2. There are also cash-back programs, which incentivizes a consumer into a single transaction, leaving no residual loyalty relationship afterward.

Brand-to-consumer, or supply chain, loyalty programs are rare, but can be helpful to connect brand with their loyal consumer


“As consumers we are physiologically more loyal to the brand of the goods we consume than the merchants we buy the goods from.” -Greg Simon, CEO & Co-Founder, Loyyal


Business logistics executives face four major challenges:

Achieving dramatic reductions in time-to-market.

Creating value for shareholders.

Marketing their supply chain as a competitive edge.

Earning customer loyalty.


“Knowing that employee loyalty is an absolute prerequisite before achieving customer loyalty” -Robert Dicello


Relationship-building is key to establishing B2B loyalty, and a customer satisfaction score will do little to assist in that effort. There is little correlation between satisfaction and loyalty.

Loyalty vs. satisfaction. Executives now know that customer loyalty is not customer satisfaction. Customer satisfaction is just an attitude at a moment in time, usually while responding to a verbal or written survey. Loyalty is actual behavior that results in multiple buying cycles over a period of time.