The manufacturer’s perspective on supply chain flexibility and customer satisfaction

Studies have shown how isolated flexibility dimensions
are related to customer satisfaction. Little is known about
what manufacturers perceive as important for customers.
Yet, manufacturers’ perceptions govern their actions and
are likely to determine the relative investments in each
flexibility dimension. The purpose of this study is to
empirically investigate supply chain flexibility from the
manufacturer’s perceptive to see which flexibilities will
increase the level of customer satisfaction when all
flexibility dimensions are taken into account at the same
time. We gathered survey data from managers in Dutch
manufacturing companies. Results from structural
equation modelling imply that in the eyes of the
manufacturer, only logistics and spanning flexibility are
perceived to have a significant positive impact on
customer satisfaction. Using Bayesian model selection, we
find that manufacturing managers prioritize spanning,
then logistics, then manufacturing and then product
development flexibility. Hence, the importance of product
development flexibility and manufacturing flexibility,
though highly valued by customers, are currently less
acknowledged by manufacturers. With our study, we
create awareness for the manufacturer’s perspective on
supply chain flexibility, which tend to focus on the service
to the customer. Our study identifies the directions in
which a further improvement of customer satisfaction can
be achieved.