Customer service in logistics: Examples, Importance, How to Improve?

This threshold service level assumes that a company cannot sustain themselves in any market it they do not offer a base level of customer service greater than or equal to their competitors. Once a company has reached the threshold service level, any improvements above the threshold are expected to stimulate sales. These sales can come from new and unexplored markets or customers converted from other companies.

A positive experience in customer service not only help retain customers, but also help with the acquisition of new customers. Retained and loyal customers can help increase incremental growth of a business. When comparing, retaining customers costs 4 to 10 times less than the cost of acquiring new customers. According to LaLonde and Zinszer, there are three elements to customer service.

What is logistics management? Why is it important? What are the benefits?

Also, there are specific standards established in any business to monitor the quality of order and check the average order time and keep it steady. Are you considering outsourcing as a solution to your customer support challenges? SuperStaff, a leading call center in the Philippines, provides back-office service solutions, nearshore call center services, and outsourced customer service in the Philippines to enhance your service capabilities. Furthermore, outsourcing is a cost-effective solution, particularly when compared to the costs of maintaining an in-house support team. It cuts the need for extensive training, infrastructure, and ongoing management, allowing for more efficient allocation of resources — no wonder 57% of executives utilize this tactic.

Demand planning also predicts future revenue generation opportunities and helps gain insights into market trends. It helps to plan resources to meet demand and supply gaps as and when required. Inventory planning ensures that proper stock quantities are maintained to meet customer demand while minimizing the costs related to storage. Inventory planning helps provide accurate order fulfillment, a well-organized warehouse, increased productivity, and savings in terms of time and money.

Implement customer service software

Round-the-clock services make you available to them regardless of time zones or location. Technology also plays a crucial role, with features like chatbots, automation, and online platforms that how is customer service related to logistics management give your clients immediate access to information and assistance outside regular business hours. These roles serve as the pillars of your customer service by addressing your long-term goals.

Most businesses focus solely on speed and cost when choosing their transportation methods. In the world of e-commerce, excellence in customer service can make the difference between a sale and a lost customer. Today’s customers are savvy and able to reward businesses that offer exceptional service with their loyalty. However, if you’re lacking in this area, you may end up losing valuable income as your customer’s shop for a better experience. How many times have you used a company only to get terrible service that makes you regret your decision? But great customer service can be the determining factor in whether someone is a customer for life or not.

5. Sales–service relationship

This is why it’s important to have a good brand reputation especially when it comes to logistics. If new leads see that customers are leaving positive feedback regarding shipping times and product quality, they’ll be more likely to purchase from your website or catalog. A great example of customer service and logistics working hand-in-hand is delivery updates. Nowadays, most ecommerce operations will include an email or short message service (SMS) that updates customers when a product is purchased or delivered. If you’ve opted-in for live updates, you might even receive texts like the one below, telling you that an order has been shipped.

Thus, those companies providing last-mile delivery should also allow consumers to update their delivery preferences in real-time. They should also inform providers if they will be available to collect a parcel. While this creates lucrative opportunities for logistics companies worldwide, it also has added challenges. Increase in online shopping has also led to an increased focus on reverse logistics, which possesses a different set of challenges. Investing in advanced tracking technology allows customers to monitor their shipments in real-time, improving transparency and reducing the number of customer inquiries.

Different Types of Logistics Management

This typically happens because (in many cases) retaining a customer is cheaper than attracting a new one. Conversely, a minor boost in customer retention can lead to a significant increase in profits. The larger the operation, the more complex and difficult the logistics management.

The recent pandemic, geopolitical unrest, and logistics issues have impacted most of the world but left some countries more devastated than others. For one, investing in cloud computing, artificial intelligence, and automated management systems is costly,. Often requiring experts to train your staff in operating and integrating tech into your existing system.

Balancing Cost-effectiveness With High-Quality Customer Service

In realizing the cultural differences, U.S. companies should make sure the vendor clearly understands what is expected of them. Words that are used in the U.S. may have a totally different meaning to someone in India or China. The company may feel they clearly defined their requirements and the vendor may feel they clearly accomplished the work according the requirements as they read or understood them.

Other penalties include called in manager/salesman, cut-off of all purchases with suppliers, significant number of items discontinued, deny of purchasing new items and refusal to invest in promotion. 8.5 shows some significant customer service penalties noted from an industry survey. Corporate customer service is the sum of all these elements because customers react to the overall experience. Logistics companies’ reputation and image are founded on reliability and trust.