Abstract
This study sought to determine the effects of supply chain management practices on customer satisfaction and retention in major retails food companies located in Southern Region of Saudi Arabia. Data collection was done by survey using questionnaire. The number of samples is 208 employees, with the method of convenient sampling. The method of analysis in this study is the multiple linear regression analysis, with SSPS testing reliability and normality, correlation, hypothesis testing, simultaneous effect and the coefficient of determination. The results find a statistically significant and positive relationship between strategic supplier partnership (SSP), customer relationship (CR), Level of information sharing (LIS), level of information quality (LIQ) postponement practice (PP) and customer satisfaction (CS). However, the relationship between Customer Relationship (CR) and customer satisfaction (CS) is considered statistically non-significant and negative. Furthermore, customer satisfaction (CS) is a good predictors of customer retention (CRe). This finding can be used implementatively for management to improve the elements supporting the strengthening of supply chain management practices and increasing customer satisfaction and retention in the retail food companies. Nonetheless, the findings of the study help companies to improve the quality of their services, products, and treat customers as their first priority in order to be retained them. Therefore, theses guide customers to recommend the firms to others. The results identify the influence of supply chain management practices on the customer satisfaction and retention according to the food retail sector in Saudi Arabia.
Highlights
The change of the market from locally to universal leaded to increase customer demands on the products and services that have lower prices, with high quality, and speed delivery, and increase the variety of items (Braunscheidel, 2005)
supply chain management (SCM) was assumed as the logistics of manufacturing and distribution, which extended from consumers and suppliers
The value of r is calculated and compared with the r-table; the results obtained from the calculation of the variables and indicators in this study show that these are valid
Summary
The change of the market from locally to universal leaded to increase customer demands on the products and services that have lower prices, with high quality, and speed delivery, and increase the variety of items (Braunscheidel, 2005). Supply chain management (SCM) plays an integrates roles in business processes beginning from raw material suppliers ending to end users for the product, service, and information (Lambert and Cooper, 2000). This study was designed to determine the effect of supply chain management (SCM) practices on customer satisfaction and customer retention in the retail food companies in southern region of Saudi Arabia. According to Senge (1990) when the whole system divided into different parts, the interrelationships will be missing This theory is tailored toward systematically explicating the dynamics that characterize the SCM practices. Strategic supplier partnership, Customer relationship, information sharing (IS), ordering postponement within and across the supply chain must be taken into consideration to properly understand these practices. Systems thinking theory highlights the effectiveness of various SCM enablers on organizational outcomes, such as customer satisfaction
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