June 5, 2014
Net Promoter Score and the Supply Chain: What You Need to Know
The concept of net promoter score has been around for about a decade, but it recently has gained momentum in the logistics community.
Commonly abbreviated as NPS, net promoter score simply answers the question, "How likely are you to recommend a company to someone such as a coworker or friend?"
If you have conducted any type of business transaction, whether personal or professional, you may have received information on follow up surveys regarding your experience with that transaction. The concept of NPS is the same; it's a metric of business performance that is capable of measuring a business' relationships with customers.
So, you're probably thinking, "What does this have to do with my supply chain?" Well, a lot actually. If your supply chain provider is providing mediocre or poor service, you probably notice it. You may find yourself trying to create visibility of your supply chain where none currently exists: excessive phone calls, emails and voice mails may leave you feeling in the dark. You think that you may have some idea that your provider is managing your product with the quality you deserve, but really, you have no clue. This leads to lost productivity for your business, increased spend, and decreased satisfaction with your logistics provider.
If you end up leaving this provider, and they don't ask you why you're leaving or if they don't survey your perceptions on how they're performing, they are doing you a disservice. By engaging in an NPS survey with your supply chain provider, you create pathways for dialogue to take corrective action and form a more meaningful relationship with your 3PL.