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The worst error most managers make: Neglecting customers

(Boonton, NJ, November 10, 2006) — The mission of the warehouse is to produce perfect orders: shipments that arrive on time, without damage, and with the correct items. Yet many managers forget that the only judge of a perfect order is the customer.

In his recent commentary in Distribution Center Management newsletter, logistics expert Ken Ackerman discusses the confusion that arises in some distribution centers about just who the customer is and suggests strategies for identifying customers’ needs and correcting service problems that arise.

Nearly every warehouse manager, Ackerman says, puts the customer service spotlight on the people who generate his revenue. For instance, if the company is a logistics service provider, the revenue producers are the depositors who put goods in the warehouse. If the warehouse is designed for plant overflow, then the customer is the production manager.

Both viewpoints, says Ackerman, are wrong. “The single most important customer for nearly every warehouse is the person who receives your shipments.”

Even though it is easy to accept that the consignee is king, says Ackerman, more warehouse managers need to take the next step to ensure that these customers are satisfied with the service the warehouse is providing. The article details the following important steps:

• Meet with consignees on a regular basis to find out exactly how well you are doing.
• If a personal visit is not practical, consider a phone or paper-based survey.
• Once a problem is identified, determine the cause and create an action plan to correct the situation.

The full text of Ackerman’s column is online at the Distribution Center Management website at http://www.DistributionGroup.com/featured_articles.php.

About the Distribution Group

For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.

Website: http://www.DistributionGroup.com