The 3.0 needs of consumers in logistics, a shift from process to experience

Across the global economy, consumers are wanting more and more. They set the bar of what is considered quality service. There’s not only a desire for more, but there’s also a high demand. The actions of consumers are shaping the “how”. How should carriers interact with them, from contract negotiation to the use of new technologies? With the rise of services like Bol.com, Coolblue, Amazon, etc. consumers have also been able to access a huge product array at record-low shipping costs. The increasing demands of consumers are driving a shift away from process improvement to customer-focused logistics.

*Article initially published on Medium.com 05/09/2019

“In the rapidly changing economic climate, innovative initiatives are becoming essential for staying on top of the competition.”

As competition in the services sector is constantly increasing, the ability of companies to understand their customers and ensure their satisfaction with the services received is becoming more and more significant. Of course also in the logistics sector.

For a long-term relationship, a logistics service provider has to provide a service in line with the customers’ expectations, leading to the appropriate level of customer satisfaction. But what do they want …?

What do customers really want?

Here’s a list of a few things that customers deeply want.

  • Free shipping
  • Excellent price
  • Immediate visibility of the status of the delivery ; “track trace”
  • Immediate shipping
  • Next-day, if not same-day, delivery

In resume, customers want more bang for their buck.This is a basic concept in every industry but very pronounced in logistics. Furthermore, customers want a seamless experience during the whole buying process.

Customer satisfaction

For companies who are seeking a competitive advantage, customer satisfaction is very important. Why? Because if they don’t satisfy the expectations of customers, their place will be taken by other companies. The logistics companies must ensure every customer service related element from the acceptance of deliveries to the perfect execution.

What can logistics companies do to improve the customer experience?

There is no real way to give customers what they want by simplifying processes. 3PLs are being used to gain actionable insights into everyday operations.

Third-party logistics (abbreviated as 3PL, or TPL) in logistics and supply chain management is an organization’s use of third-party businesses to outsource elements of its distribution, warehousing, and services.

Below we’ll introduce you some of the best ways to create customer-focused logistics:

  • Customer service: good customer service experience might be put on social media bad remember that a bad one will go viral. Be present on your social media, and make your company extremely transparent to your customers.
  • Align your logistics strategy with your business retail strategy: If you focus your retail and logistics strategy on your customer service, costs associated with each transaction decrease. This is due to better visibility and due to good coordination of all inbound and outbound logistics operations. They will both have a 360° view of all steps in the product cycle.
  • Fixing issues is not enough. Shippers need a strategy for customer service. Shippers must also devise strategies that use algorithms and data-based information to give customers more than they would normally get. However, these bonuses must not result in increased costs. Think about it; you cannot give customers everything they want. But, you can give them more than they need. This is key to achieving a superior customer service experience.

The “Amazon effect”?

Fundamental distribution patterns are shifting radically because the demand rises constantly. But what particularly? The customer demands are forcing businesses of all kinds to warehouse their goods ever closer to intermediate and end-customer: Last Mile delivery. If you would like to read more about the future of last-mile Delivery, I invite you to read this article.

“Next week is no longer good enough. It’s got to be on its way now and arrive at destination within a day or two,” says C. John Langley, a clinical professor of supply chain management and the director of development for the Center for Supply Chain Research at Penn State’s Smeal College of Business.

Conclusion

There are a lot of changes occurring within the logistics industry. The world is more connected, the demands of consumers have come to the forefront. This has an impact on the whole logistics process. Companies outsource their logistics to be fully concentrated on their business.

Companies must focus on the end-result: happy customers, profitability and growth.

Questions?

We hope we succeed in giving you more insights on this subject. If you have any questions feel free to reach our Shippr team at “hello@shippr.be”. You can also connect with the team on Facebook, Instagram, LinkedIn!

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