IMPACT OF SUPPLY CHAIN PRACTICES ON MINIMIZING CUSTOMER COMPLAINTS

Abstract

Customer complaint is a major issue in organization because it have impact with customer relationship and loyalty. PT ABC is a manufacturing company in B2B business that produces flavors, fragrances and related products. The management often blamed the supplier performance for the customer issues. The aim of this study is to analyze impact of supply chain practices and customer orientation could have significant impact on minimizing customer complaints or for better handling of customer complaints. This study also aims to analyze the other organizational variables that impact on supply chain practices such as quality orientation, leadership practices and supplier performance. The study used quantitative design using data collected from the employees of PT ABC. The survey questions were sourced from established studies and further checked for reliability and validity. The hypotheses were tested using multiple regression analysis. The hypotheses about dependency of the customer complaint handling on supply chain practices and customer orientation was supported and the estimates were significant. The hypotheses regarding dependency of supply chain practices on the organizational variables like leadership practices and quality orientation were also supported. But the management contention regarding supplier performance tested as a hypothesis was not supported.