What is Customer Fulfilment? More Than Just Delivery
- Steve Gorham
- Jul 21
- 5 min read
The final article from Steve Gorham on creating and managing an effective supply chain solution for your business. Here are links to the previous 4 articles.
In my opening article, I summarized customer fulfilment as ensuring timely delivery, customer satisfaction, and handling returns. A broad and simple explanation, but it covers the basics. If you provide the required product/service 'on time in full,' (OTIF) your client is likely to be happy, and having a good returns procedure in place, when required, completes the circle.
So, by establishing a robust supply chain, as laid out in my previous articles, have I cracked customer fulfilment? (Perhaps leave this question open rather than stating you have the answer).
Order processing – receiving and confirming the customer order. Inventory management – ensuring the product is in stock and ready. Packaging and shipping – preparing and delivering the order to the customer. Delivery tracking and updates – keeping the customer informed. Source: Definition adapted from various AI models.
In short, customer fulfilment is the end-to-end process of satisfying a customer's order, from purchase to delivery.
Having successfully organized sourcing, logistics, and distribution, can you be sure that customer fulfilment will take care of itself? It's tempting to think so, but that's where the danger lies.
The Pitfalls of Assumption
It is extremely dangerous to assume that because you've done everything asked of you, your clients will be happy. Failure to meet customer expectations can damage your reputation and drive customers to competitors.
Having put in place a solid supply chain, you need to ensure it is working in practice and continues to do so. As such, I strongly recommend measuring and monitoring all areas of your supply chain.
Much depends on the size of your operation, but if you do not have appropriate business systems (e.g., WMS - warehouse management system, inventory control system, or vehicle tracking), then you will need manual processes and controls to ensure all aspects of your supply chain are functioning correctly. As an example, if you are keeping stock, then P.I. (perpetual inventory) is an essential tool to allow for stock accuracy.
Key Performance Indicators (KPIs): Your Compass
KPIs are essential tools in business management, offering clear, measurable ways to track performance against strategic goals. KPIs help organizations stay focused, make informed decisions, and continuously improve. Information is king.
Examples of relevant KPIs include:
• Order Accuracy Rate: Measures the percentage of orders fulfilled without errors.
• On-Time Delivery Rate: Tracks the percentage of orders delivered within the promised timeframe.
• Customer Satisfaction Score (CSAT): Gauges customer satisfaction through surveys or feedback forms.
• Net Promoter Score (NPS): Measures customer loyalty and willingness to recommend your business.
Gathering Customer Feedback: More Than Just Surveys
So, having established the appropriate supply chain and put in place all the controls, measurements, and reporting functions to ensure everything is as it should be, then you can rest easy that your customers will be fulfilled? Not necessarily.
Assumption is not your friend. It is important to be confident in what you are providing, especially if you have the data to back it up, but the customer's perception of the service is the critical measure.
You will have a number of touch points with the client. Customer service, sales representatives, credit control, and drivers all have regular interaction with your client, so there is ample opportunity to get direct feedback.
Without bombarding the client with repetitive questioning from all and sundry, ensure you have a structured way of 'checking' in with them, and ensure that all reliable feedback is available for review. Drivers are likely to have the most regular contact with clients and can quickly pick up on how a client is feeling about the service provided. Make sure that they have the opportunity to avail the right people of any knowledge collected.
Methods for Gathering Customer Feedback:
• Surveys and Feedback Forms: Use targeted surveys to gather specific information about customer satisfaction and areas for improvement.
• Social Media Monitoring: Track mentions of your brand and products on social media to identify potential issues and address them promptly.
• Direct Communication: Encourage customer-facing staff to actively solicit feedback from customers during interactions.
• SLA Reviews: If you have SLAs (service level agreements) in place with some or all your customers, it is vital they are reviewed with the client and any issues addressed. It may seem an obvious point to make, but too often SLAs are used to help win business and then ignored. Do not pay lip service; if you agree to provide certain levels of service, do so!
Turning Feedback into Action
Not all clients that are unhappy complain; they often just vote with their feet. It is imperative that anyone in your organization that interacts with clients is aware that they have a duty to feedback relevant information to those that can act on it, good and bad.
• Analyse Feedback: Look for patterns and trends in customer feedback to identify common issues and areas for improvement.
• Prioritise Actions: Focus on addressing the issues that have the biggest impact on customer satisfaction and loyalty.
• Implement Changes: Make changes to your processes, products, or services based on customer feedback.
• Communicate with Customers: Let customers know that you have heard their feedback and are taking steps to address their concerns.
Stress Testing Your Supply Chain
Ensure the supply chain is reviewed and stress-tested regularly. This could include:
• Testing your systems with a sudden surge in demand
• Unexpected supply chain disruption
• Unexpected staff shortages
Conclusion: It's All About the Customer
It is a truism that customers are ultimately the boss; in almost all cases, they can take their business elsewhere. Never take their business for granted. Generally, it is easier to lose a customer than it is to gain one.
Whatever service you are looking to provide, ensure you have a robust, reliable supply chain that is appropriate to your service offering and customer base.
Quotes to Remember:
"Retention is not a cost—it’s an investment."
"Your best marketing is a satisfied customer."
"People may forget what you said, but they'll never forget how you made them feel."
"Serve like it’s your first day. Appreciate them like it’s their last."
"Loyal clients are not bought—they’re earned."
"Retention isn’t about locking clients in—it’s about giving them no reason to leave."
Steve is a proven and experienced business leader and senior manager. With a 35-year track record in leadership roles, Steve has managed and led teams from small, project teams to national teams of over 200 people, and coached and mentored individuals from start-up businesses to national director level.
A specialist in operations, logistics and supply chain management; Steve’s wider commercial experience includes business ownership and business mergers and includes personal leadership roles from single-site to multi-location businesses with sales in excess of £200m per annum.
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