Two thirds of manufacturers and distributors have customer service gaps when compared to Amazon and mega-distributors, like Amazon, according to a research study performed by LMA Consulting Group Inc. Amazon has created not only a buzz with their innovative service options, but it has also raised the bar for service permanently. If manufacturers and distributors want to maintain their customers, they must pay attention immediately.
For example, a large manufacturer in the aerospace industry receives feedback on a daily basis that service must dramatically improve, and lead times need to be slashed. These concepts used to provide a strategic advantage; however, they are no longer enough. Now, companies must be on the leading edge and proactively creating relationships with key customers to thrive. In another example, a middle-market manufacturing company in the consumer products industry finds that lead times must be reduced by 25-50 percent to maintain an edge.