Share this article
Follow us on Linkedin
In today’s fast-paced business environment, customer experience isn’t just a nice-to-have—it’s a make-or-break factor for success. Did you know that poor customer experiences cost businesses a staggering $3.7 trillion annually? With customer retention being up to 25 times cheaper than acquiring new customers, delivering exceptional experiences is no longer optional—it’s essential. One of the most impactful ways to enhance customer satisfaction is through digitizing supply chain management. In this blog, we’ll explore how Westernacher’s expertise in SAP Transportation Management (SAP TM) can help businesses overcome supply chain challenges and deliver superior customer experiences.
The problem – Why Supply Chain Management matters for customer experience.
Customer expectations have never been higher, especially when it comes to delivery services. A poor delivery experience can lead to lost sales, damaged reputations, and decreased customer loyalty. According to a Qualtrics survey, 61% of consumers have reduced spending with a brand after a negative delivery experience. Additionally, 83% of customers consider knowing the delivery time of their package as the most important service an online brand can provide (Source: GSM Tasks).
The challenges are clear: businesses must balance speed, cost, and flexibility while maintaining visibility and efficiency across their supply chains. Without the right tools, companies struggle to meet these demands, leading to inefficiencies, higher costs, and dissatisfied customers.
The solution – Supply Chain Optimization through Digital Transformation.
The key to overcoming supply chain challenges is to enter a transformation journey with technologies that prioritize visibility, flexibility, and efficiency. Such solutions not only optimize supply chain operations but also meet the evolving needs of today’s customers. As an industry leader in supply chain digitization, SAP offers powerful solutions like SAP Transportation Management (SAP TM) to address challenges and enable businesses to optimize their supply chains by providing:
- Visibility: Real-time tracking allows customers to monitor their orders from start to finish, reducing anxiety and improving trust. For businesses, this means better operational control and the ability to quickly address issues. In fact, 88% of customers deem real-time shipment tracking essential for a satisfactory customer experience (Source: MIT Sloan).
- Flexibility: SAP TM allows companies to offer customized delivery options, such as flexible delivery times and dynamic pricing, catering to diverse customer preferences. This flexibility is crucial in today’s market, where 38% of customers prioritize reasonable shipping costs and 46% are willing to wait longer for cheaper rates (Source: Digital Commerce 360).
- Efficiency: By streamlining transportation planning, freight execution, and cost settlement, SAP TM helps businesses reduce operational inefficiencies and lower costs. Companies using SAP TM have reported freight savings of up to 20% and a 95% reduction in invoice errors (Source: Gartner).
The benefits – Tangible Results for Your Business
Implementing SAP TM isn’t just about solving problems—it’s about unlocking new opportunities. Businesses that digitize their supply chains with SAP TM can expect:
- Improved customer satisfaction: Real-time tracking and flexible delivery options lead to happier customers and higher retention rates.
- Cost savings: Optimized routes and reduced freight costs directly impact the bottom line. For example, one of Westernacher’s clients achieved a 40% increase in picking efficiency and a 12-15% reduction in freight costs after implementing SAP TM.
- Enhanced competitive edge: A seamless, efficient supply chain allows businesses to respond quickly to market changes and customer demands. Companies using SAP TM can manage 2,500+ routes systematically and standardize 100+ charge models, ensuring smooth operations.
Start your digital transformation today!
The future of supply chain management is digital, and the time to act is now. By partnering with Westernacher, you can leverage our deep expertise in SAP solutions to transform your supply chain and elevate your customer experience. Whether you’re looking to improve visibility, flexibility, or efficiency, our team is here to guide you every step of the way. For more in-depth insights on supply chain digitization, explore our full white paper at https://westernacher.com/supply-chain-management/.
Ready to take the next step? Contact us today to schedule a consultation or request a demo of SAP TM. Let’s work together to build a supply chain that not only meets but exceeds customer expectations!
