Can Supply Chain Innovations Create Customer Happiness?

Join the supply chain conversation at Think Supply ChainJeremy Gutsche will be one of the general session speakers at APICS 2013. In anticipation of meeting him in Orlando, I have been spending some time “getting to know him” through his hugely popular website Trendhunter.com. As the site states: “With 40 million monthly views, TrendHunter.com is the world’s largest, most popular trend community.” At its core, Trendhunter.com is a crowdsourcing community of more than 117,000 individuals who spot and share trends. Trendhunter.com staff post microtrends every day to help site members and readers “generate ideas, stimulate creativity, and ultimately unlock cool.”

To me, Trendhunter.com embodies this year’s conference theme, “Leveraging the Power of the Customer.” Gutsche’s success is directly related to his opinion that companies seeking to innovate make a mistake when they “microcompare” themselves to their competition, resulting in a market full of similar products. “Cool” is not a synonym for popular. Cool represents a “pocket of opportunity” that companies can potentially seize to lead—not follow—in the marketplace. Companies, including Nestlé, Kellogg’s, P&G, Samsung, and Intel, contract with Trendhunter to provide special dashboard reports that help them seize their opportunities.

Supply Chain and Opportunities for Innovation

Searching “supply chain” on Trendhunter.com, I found an interesting story about Coke2Home. Coke2Home is the brainchild of Hindustan Coca-Cola Beverages. The company believes strengthening its supply chain will support its development as a world-class company; and, therefore, it puts an emphasis on supply chain innovation.

Coke2Home does what the name suggests. It delivers Coca-Cola products to the doors of customers in Ahmedabad, India. Consumers placing an order online before noon will receive delivery the same day. In a recent interview with the Times of India, T. Krishnakumar, CEO of Hindustan Coca-Cola Beverages, explained, “our entire suite of products become available to the consumer to choose from, and a significant drop size provides us with a viable model for door-to-door delivery.”

The milk truck has been around for decades, so why does this Coca-Cola service count as cool? The answer is simple: Home delivery in India ultimately is responsive to the end consumer. With retail shelf space at a premium and personal transportation difficult, home delivery of groceries ordered online is bound to be popular with India’s rising middle class, saving them time and money. Of course, from a supply chain perspective, there will be challenges to overcome. But if Hindustan Coca-Cola Beverages can develop a model that balances consumer value and company profit, this supply chain solution likely will create a competitive advantage for Coke in the Indian marketplace.

So can supply chains deliver happiness to the customer? What other trends illustrate how companies are leveraging the power of their customers to innovate and create competitive success?

One thought on “Can Supply Chain Innovations Create Customer Happiness?

  1. In the days before mass production goods were delivered in a very personal customer friendly fashion I.e. the local milk truck.
    The costs to maintain such personalized service to large populations became prohibitive m

    It is very refreshing to read how Coke in India is using supply chain innovation to re-establish cost effective personal service.

    Tim Reis

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