Poor communications expose retailers to customer exodus

July 11, 2002 by SAP News 0

neglected suppliers impact bottom line, according to survey

LondonRetailers risk losing customers if they don’t get closer to their suppliers and partners, warns SAP.

According to research conducted by Total Romtec for SAP, 50% of retailers believe they have lost customers after being let down by a supplier or partner. Furthermore, 75% of retailers blame their systems for being too remote from their suppliers’ systems to enable useful online collaboration, and cite data compatibility as a further obstacle.

Rupin Kotecha, business development manager for the retail sector at SAP UK, said, “The growing sophistication of the Internet as a communications tool as well as a trading mechanism means that retailers are placed in an ideal situation to work more closely with their suppliers.”

“It’s not rocket science: the closer the relationship between suppliers and retailers, the greater the efficiency in the supply chain, and the better the service that the customer receives.”

“That’s really what it’s all about,” Kotecha continued. “But customer service starts right at the beginning of the supply chain, with an efficient, streamlined and well co-ordinated partner and supplier strategy. If this fails, you’ll lose the customer.”

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