Ndubuisi Martins Egwuekwe, Onyebuchi Obiekwe (PhD), M. E. Akinade


Effective supply chain has become a critical success factor that drive customer satisfaction and retention, which are vital keys for enhanced organizational performance and survival in today’s highly competitive business arena. This paper theoretically examines the impact of supply chain innovation on customer retention. The paper noted that supply chain innovation provides organizations with competitive advantage over their rivals in the market and help them to retain their customers. It also identifies effective timely delivery, after sale service and responsiveness as the dimensions of supply chain innovation. The paper concluded that supply chain innovation enhances customer’s satisfaction which is vital for their retention and loyalty. Additionally, customer retention and loyalty requires that manufacturing firms delivers on their customer’s expectation fully in a predictable and an ongoing supply chain relationship. Supply chain innovation results to more efficient and more productive processes within the supply chain and is essential for manufacturing firms to remain competitive. It is recommended that organizations should ensure that effective collaboration exist between all stakeholders in the supply chain process in order to promote successful customer satisfaction. Additionally, organizations need to provide customer purchase satisfaction before and after purchase since this is likely to lead to customer retention and satisfaction. Organizations should also ensure that they incorporate effective time delivery as one of their strategic options in their supply chain management as this will result to customer’s satisfaction which enhances retention, among others.


Supply chain innovation, customer retention, customer satisfaction, competitive advantage, effectiveness.

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