305/306 – MINI INTERACTIVE WORKSHOP How to Build a Supply Chain Based on Customer Behaviors

September 20, 2017 8:00 am - 9:50 am

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Customer Experience

Most businesses’ customers have choices—their purchases can be met from multiple suppliers. eCommerce parcel markets make this palpable because those customers can shop merely by clicking. Businesses will succeed to the extent they understand their customers, particularly their customers’ buying behaviors—what customers actually do in searching for what they want and making their buying decisions. Buying behavior is influenced predominantly by cost and lead-time—the time it takes for shoppers to get what they want. Costs include shipping; lead-time includes several components—inventory availability, warehouse processing and transit. Another critical dimension of behavior is “repetition” or the likelihood of returning to a supplier to shop for the next purchase. Find out how to increase market share by understanding customers’ buying behaviors. We’ll first outline how to clarify buying behavior through fact-based research. Armed with this intel, we’ll quantify the benefits of cost and lead-time options that eCommerce parcel businesses have by deriving the relationship between sales and cost and between sales and lead-time. Then we’ll design parcel supply chains to respond to these relationships. You will find out how to quantify sales gains in multi-competitor markets and quantify the benefits of repetition. Finally, we’ll break into small groups and actually formulate selected attendees’ buying behaviors then simulate how those behaviors work in competitive multi-supplier markets with a software tool. It will quantify the relationship between market share and satisfaction of the identified buying behaviors.


  • Buying behaviors–what they are, why they are important and how to determine them
  • How parcel supply chains can be designed around a buying behavior
  • How sales are dependent on shipping costs and lead-times
  • The discovery of attendees’ customers’ buying behaviors
Terry Harris