ASSIGNMENT 1

Iqra Altaf
01-120141-011
Mba -5A
Submitted to: Sir Ahmed Hassan Chattha

Customer is a part of supply chain:

A supply chain is a system of organizations, people, activities, information, and resources
involved in moving a product or service from supplier to customer. Supply chain activities
involve the transformation of natural resources, raw materials, and components into a finished
product that is delivered to the end customer. Customer is the center of all these activities, as
without customer, there is no purpose of supply chan.
Each process in the supply chain is managed by a cross-functional team including
representatives from logistics, production, purchasing, finance, marketing, and research and
development. While each process interfaces with key customers and suppliers, the processes of
customer relationship management and supplier relationship management form the critical
linkages in the supply chain. Customers preferences and satisfaction has been given a significant
importance in the supply chain.
Customer Focused Supply Chain Management, CFSCM, is a strategic approach to acquiring
goods and services. CFSCM is based on the idea that by enhancing your customers overall
satisfaction with your product or service, in the long run, you will improve the profitability and
efficiency of your entire enterprise which includes your supply chain partners.
The overriding philosophy of CFSCM is that everyone in a customers supply chain is linked to
the customer, and that the supply chain is only as strong as its weakest link. The strategy of
CFSCM is to establish collaborative relationships up and down the supply chain; from upstream
raw material suppliers to downstream final users of the product or service. With CFSCM we seek
new and better ways to acquire goods and services that will increase our customers satisfaction
and improve profitability.
the first step in implementing a CFSCM program is to establish free and open two-way
communications with your customers and suppliers. Understand their needs. Work with them to
solve design, fulfillment or quality problems. Establish functional interfaces between your
companies. And, collaborate with them on product design and improvement.

Find out what the customer is looking for: low cost? Speed to market? Service? Flexibility?
Technological innovation? Only when you truly understand the needs and strategic objectives of
your customer can you set operational strategies for your company and the suppliers in your
supply chain. The goal is to establish a smooth flow of information up the supply chain from
customers to suppliers, and smooth flow of product and services down the supply chain from
suppliers to customers. The more information that suppliers know about their customers actual
requirements, the less inventory needed in the supply chain.
Supply chain management is directly related to a companys customer service. And if a company
has great customer service, it can get a leg up on the competition. To be successful, a small
business must take advantage of every opportunity it can to stand out from the competition.