Your supply chain should be invisible to your customers, almost magical
by Carol Miller, MHI VP of Marketing and Communications
Supply chain executives need to think about more than reducing costs and moving merchandise. In addition, they should focus on how the supply chain can help to enhance their brand.
Walt Disney understood human nature and brand loyalty perhaps better than anyone. He knew visitors to Disney parks had no interest in seeing the unglamorous behind the scenes operations of a theme park. They came to experience magic in a family-friendly environment. He used this insight to build a system that, to this day, keeps the Disney supply chain invisible to visitors.
To do this, Disney designed a 9 acre labyrinth of tunnels below the park’s main streets called the “Utilidor,” which is short for “Utility Door.” The Utilidor feeds goods to the parks attractions surreptitiously and is stocked with a three day supply of inventory at all times to ensure all merchandise is there when needed.
Cast members also enter and exit the part via the Utilidor so you won’t see Tom Sawyer walking through Tomorrowland on his way to Frontierland. That would destroy the magic.
And ever wonder why the trash cans at the Magic Kingdom are never full but nobody ever empties them? The Magic Kingdom has a vacuum system that sucks all the trash in the trash cans down into a central collection area. This is the reason why you rarely see trash being emptied.
When it comes to recycling Disney also goes the extra mile. There are no recycle bins at Disney because they have a central facility where they bring all the trash collected from all over the Disney property. At this facility Castmembers sift through all the trash and remove the recyclables.
Again, trash isn’t magical, so it’s invisible.
To build an invisible and green supply chain, Disney’s pursues these goals:
–Implementing process and tools to achieve optimal total delivered costs
–Attracting and retaining top talent throughout the supply chain organization
–Ensuring compliant, socially responsible supply chains.
While cost containment is a primary goal of the Disney supply chain, it does this while supporting Disney’s mission of creating a “customer experience.”
Disney is committed to minimizing its overall impact on the environment while encouraging and activating environmentally responsible behavior on the part of cast members and employees, guests and suppliers.
Disney’s supply chain executives conserve water, energy and ecosystems; to reduce greenhouse gas emissions; to minimize waste; and to promote public consciousness in support of environmental sustainability.
To maintain the image of the brand, Disney works only with suppliers it considers to be of high integrity. As a result, Disney has formed stronger relationships with fewer suppliers.
Disney is a perfect example of why supply chain management is crucial to providing ultimate customer satisfaction. By leveraging supply chain execution, Disney is able to create magical memories for their visitors and create brand trust and loyalty.
This is a great lesson for any brand. Make your supply chain invisible to the customer and make it seem magical.
Cost containment was seen as one of the biggest barriers to supply chain innovation in the 2014 MHI Annual Industry Report. Click here to learn more.
