IMPACT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY - A CASE OF OMAR JIBRAN ENGINEERING LIMITED

Abstract

Purpose- The sole purpose of this research was to identify the impact of supply chain management practices on customer satisfaction and customer loyalty. Different literature reviews done in this research emphasized on the fact that the customer satisfaction and customer loyalty has create an impact on supply chain practices. In this research focus was on Manufacturer sector and further it was narrowed down to the Automotive Manufacturer firm Omar Jibran Engineering Limited. Methodology/sample- This research was of quantitative in nature and data was collected through close ended questionnaires distributed in Omar Jibran Engineering Limited Plants (Lahore/Karachi). The sample size was set to 180 and data was collected from entire sample for analysis. Descriptive analysis, reliability test and multiple regression tests were run for study. Findings- Our results showed that there is positive and significant relation between SCM Practices on Customer Satisfaction and Customer Loyalty. Practical Implications- Supply Chain Management Practices are not taken serious in every organization. To research on this topic, I will show that there is an impact on Supply Chain Management Practices on Customer Satisfaction and Customer Loyalty. The main motive of the supply chain management is to manage the process by which they can fulfill the customer demand. In return this will lead to customer satisfaction and customer loyalty. Customer Loyalty based on the firm performance and firm performance based on the Supply Chain Management. The benefits which are gained with the usage of SCM Practices in Automotive are lead time reduction, speed to market, efficiency enhancement, maximum resources utilization, wastage reduction etc. Therefore, it’s recommended to use the same practices across all other industries in Pakistan to get maximum benefit of advanced supply chain management.