Customer Service in Logistics: Importance, Challenges, Strategies

These include fill rates, frequency of delivery, and supply chain visibility (Innis & LaLonde, 1994). Researchers have consistently discovered that customer service is highly dependent on logistics. 8.3 summarizes the most important customer service elements as on-time delivery, order fill rate, product condition, and accurate documentation. An important concept within logistics transportation systems operations is logistics customer service. Traditionally it has been difficult for components of the supply chain to define their role in the overall customer service delivered to end-users.

These days customers expect to see an automated tracking system to monitor their order. As a result, automated shipment tracking becomes a key part of customer service. This reduces other operational costs like problem resolutions, customers calling for tracking updates, etc.

What is Customer Service in Logistics?

It is the department that controls the reception and shipment of goods that come in and out of the warehouse. Its activities are mainly administrative and are performed by the more humble employees, who do not have direct contact with customers. Analyzing historical voyage data helps companies solve the dual conundrum of forecasting demand as well as efficient delivery planning. Delayed deliveries, half-filled containers, and empty trucks on return journeys are a result of poor planning and prediction. SaaS companies can help logistics companies overcome these hurdles using data and analytics.

This is difficult when you consider that companies within the supply chain serve a dual role. They function as customers of the preceding entity within the supply chain then in turn serve as suppliers for the next link in the supply chain. This has resulted in companies planning strategically with the end-user in mind.

What Are the Key Goals of Customer Support in Logistics?

Truly happy customers appreciate that you’ve anticipated the problem and prevented its occurrence. Establishing a streamlined and efficient process for returns and reverse logistics ensures that customers receive prompt assistance and resolutions, enhancing their overall experience. While email and phone communication is something everyone offers, don’t shy away from using social media. With 1.73 billion daily active users on Facebook, it’s more convenient for them to find your company there and contact you with any questions or inquiries. If you are present on Twitter, Instagram, Telegram, and other networks – make sure you use them too. Meanwhile, SMS remains one of the most powerful ways of sending real-time notifications, service updates, changes in delivery, etc.

They should also inform providers if they will be available to collect a parcel. 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. Omnichannel support integrates various communication modes to let clients choose what best suits their preferences and needs. For instance, a shopper might want to track a shipment via a mobile app but seek assistance through live chat for urgent inquiries. Without the right team, no matter how much money you invest in your company, it is difficult to run it successfully.

Read on for some customer service tips you can use to enhance the logistics process at your business. Since the logistics process contains information that’s valuable to both the customer and the business, this presents an opportunity to engage more with your customer base. When your logistics process is transparent, customers are bound to have questions about their orders.

For instance, DispatchTrack’s 2022 report revealed that 90% of shoppers want to track their orders, but one in three weren’t able to do so. While implementing order tracking may seem easy, it still entails significant technology investment and operational adjustments. For this reason, we are always investing (high) in our customer service, so we count on a dedicated team that works with the most care to give our members the best support. They are available to solve any problem and answer any question about their experience in the group, consistently trying to find solutions as quickly and effectively as possible. Especially in the logistics business that has so many moving parts, having staff that can go the extra mile to ensure last-mile delivery and the satisfaction of the customers is of utmost importance. Customer satisfaction is the ultimate goal for businesses across all sectors.

Often requiring experts to train your staff in operating and integrating tech into your existing system. Even worse, inefficiently managing this transition could significantly disrupt your daily operations. Every global logistics group has the purpose to provide an atmosphere that enables its members to generate business. But in Twig we also believe that there must be a good connection between our staff and our members. Following are some of the soft and hard skills that customer support staff must possess.

If it is a vendor ordering some items from you to replenish stock in his/her retail store, then the vendor would have calculated the lead time i.e., the time between placing the order and actual delivery. This is to fulfill the demand of the said product on time to keep his/her customers happy. You should accomplish order delivery within the lead time to ensure that the vendor becomes a repeat customer. Now if your question is what is customer service in logistics management, then the answer would be providing constant updates to your customer about where his/her order is in the supply chain. At Simply Contact, we understand the complexities of logistics support and are committed to providing exceptional service that enhances your operations.

Regularly monitoring shipments and leveraging data analytics can help identify potential issues before they occur. Automation streamlines processes, reduces human errors, and enables customer service representatives to focus on more complex and value-added tasks. Great customer service involves being flexible and responsive to changing customer requirements and being quick to adapt to new challenges.

8. Determining optimum service levels

One approach is to set up a laboratory simulation, or gaming situation, where the participants make their decisions within a controlled environment. This environment attempts to replicate the elements of demand uncertainty, competition, logistics strategy, and others that are relevant to the situation. Game involves decisions about logistics activity levels and hence service levels. By monitoring the overall time period of game playing, extensive data is obtained to generate a sales-service curve. The artificiality of the gaming environment will always lead to questions about the relevance of the results to a particular firm or product situation. Predictive value of the gaming process is established through validation procedures.

Increase visibility of information for customers by providing real-time updates on shipment status and delivery schedules. Properly sized packaging reduces customer service in logistics waste and shipping costs, enhancing customer satisfaction. Modern consumers tend to stay loyal to businesses that emphasize excellent customer service.

Customer loyalty and satisfaction

This is common with ecommerce since the customer can’t physically see the item until it arrives at their door. 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. Integrating logistics app development into your customer service strategy can significantly improve the efficiency of your supply chain and elevate the overall customer experience.

When customer service is bad or good, people tell other customers about it. As a business owner, it can be scary to think about how much is riding on your customer’s experience with your business. A company has always had a “logistics” department even if this has never been formalized.

If a customer is happy with the service you provide (before, during, and after delivery), it’s likely that they’ll spend more money with you going forward. This means that there’s both a reduction in operating costs and an increase in customer spending. Of course, putting effort into the customer service experience benefits your company in other ways besides short-term customer happiness. The most obvious is that it doesn’t just attract customers; it allows you to boost customer loyalty as well. There are many incentives to improve customer service within the logistics industry.

• Some don’t mind phone conversations, while others may prefer contacting you via SMS, email, or social media.
• The best employees are obliged to fill up the slack for other employees, so they search for better opportunities for their talents.
• The most successful ones cement long-term relationships with customers and exceed their expectations with the right tools and by measuring the right metrics to track customer service success.
• So, it’s advisable to look at and evaluate HR metrics to make proper inventory turnover decisions.
• The fact is that the number of crates and boxes grows, as does the number of documents, customs formalities, etc.

Effective coordination between departments and external partners ensures smooth operations and a cohesive customer experience throughout the supply chain. Actively seeking customer feedback provides valuable insights into areas for improvement. Using feedback to make data-driven decisions can lead to enhanced customer service and satisfaction. New technological innovations have enabled businesses to monitor decisions of both current and potential customers. Having deep insights into every step taken by your clients will enable you to update your strategies that will lead to updated better performance and, ultimately, better service. Your customers might have similar expectations when it comes to customization, flexibility, and speed of delivery.

Key tasks in supply chain management include predicting demand, managing inventory, and coordinating transportation logistics. In today’s competitive market, exceptional customer service is crucial for building and maintaining customer loyalty. Customers now expect a high level of service, including specific delivery options, real-time visibility, and the ability to choose delivery slots. Customer service in logistics is significant to building an effective supply chain. Since they are on the receiving end of your products and get the opportunity to use them, customers always come first. From that experience, customers determine the company’s reputation and how it stands out against the competition.