Organisations in supply chains face challenges in achieving competitive advantage. Through new knowledge and strategies, there is increased creation and development of not only new products and services, but also sophisticated production and distribution processes. With the growing affluence of customers and rising standards of living, it is imperative for any organisation to find ways and strategies to continuously attain high levels of customer satisfaction [28]. This may entail developing a cluster of capabilities that enables the company and its supply chain partners to customise its products and services to meet individual customer needs [21] [35] [17].The objective of this paper is to investigate the strategies developed to enhance customer satisfaction in Distribution Centres as an organisational capability. This is based on a study of continuous innovation in the supply chain. The empirical research involved detailed exploratory case studies of ten Distribution Centres, primarily employing qualitative data collection and analysis methods. Semi-structured interviews were conducted with twenty-three managers in these ten organisations and visits to observe the operations of Distribution Centres. The case studies showed firms’ commitment to customer satisfaction through various ways such as being flexible, anticipating demand, collecting information and identifying new and different ways to satisfying customers. This study provides insight into firm-based activities and strategies required to pursue capability development in logistics firms and provide useful recommendations for managers who are seeking to build innovative service organisations.