Why it Makes Sense to Have Customer-Centric Logistics Management

Traditionally, logistics management was just about getting shipments from one point to another at competitive costs while keeping lead times healthy. Nothing has changed much in this; however, logistics management has caught on many more elements making it one of the pillars of customer retention. Yes, optimized logistics movement can boost customer retention and satisfaction.

Let’s skip the business and marketing talk and look at this through the eyes of the common customer. Customers have simple expectations, availing the best product or service when they need it (at the right time), and at the best price. Simple, isn’t it? Companies would vouch for the opposite. It’s one thing creating value in your product. It’s a whole together another thing to get it in the hands of the right customer. Proper logistics management is how you make this happen.

Now, let’s look at the average retail outlet. The retailer would want to give their shelves stocked with items that catch the customer’s attention. To do this, they need to replenish their stocks in a timely manner. You must have just in time fulfillment. It means that the retailer saves on inventory stocking costs. Here the distributor must sustain perfect replenishment cycles.

The distributor, on receiving the order from the retailer, sorts and allocates the shipment to a vehicle and dispatches it accordingly. This is the secondary leg of distribution. The lead time (the time between an order being placed and it is received) can be shortened here.

Lower Detention Time at Warehouse with Easy Loading and Dispatch

The distributor would check their warehouse for the necessary order items. Then come the sorting and shipping. Here allocation and loading can eat up a lot of time. Technology can assist in keeping this time down and optimizing the entire process. The pickers can just scan in the items at the unit level and at the crate level.

LogiNext’s last mile delivery optimization technology automatically pulls the scanned items into the system. The shipment may have some requirements such as being transported in a reefer truck, etc. Each driver might prefer an area (where they know the locale pretty well). The system maps the type of shipment (suited for temperature-controlled transport) to the right truck and the right driver. Easy scanning and loading cut down the detention time at the warehouse, further shortening the lead time.

Perfect Routes Covering More Deliveries Per Trip at Lower Costs

The distributor would be replenishing stock at multiple retail outlets. Each retailer would have a specific time slot when they would take delivery. Even the transit time for the trucks would have to be minimized, irrespective whether they are self-owned or through a third-party logistics partner. So, how to do all this, while keeping total logistics movement costs down to a minimum?

To begin with, the tech within LogiNext’s system optimizes the capacity of each truck when it is loaded. This means that the truck carriers more and is equipped to replenish more outlets. The other factor is how to manage all the preferred delivery time windows within a single trip. This, in fact, comes right under LogiNext’s core forte. Route planning and optimization.

The route planning engine checks local traffic patterns and delivery timelines to create the best route with shortest distances, yet making on-time deliveries, each time. The stores stand replenished and the customers have access to their desired products.

The warehouse can also be source for e-commerce deliveries, hence opening up an omnichannel setup for the parent client. Customer orders can be directly shipped to their doorstep. The delivery associates collect all their orders, optimized for their carrying capacity, and follow the planned route to order fulfillment. This comes under the tertiary leg of distribution. Customers get their products in hand, at the time they wanted it, and with perfect authentication (here the delivery associated validates the order from their app).

Live Tracking and Instant Alerts for Managers and Customers

As the delivery associates go about fulfilling their orders, the manager can track their every move to ensure they stick to the planned routes. In case of any delay, there is an instant alert sent out to the manager, laying the ground for necessary corrective actions. Even the customers know exactly when they would receive their orders with precise estimated time of arrivals (ETAs). When there is an unplanned delay or the delivery associate must pick up an order or return from a customer, then the ETAs for the subsequent orders are recalculated. The new ETAs are instantly communicated to the manager and customer.

Such visibility adds to the control over logistics movement. According to internal surveys conducted at LogiNext, 74% of customers said that the leading cause of dissatisfaction is not knowing where their order is at any moment. Comparatively 64% said that the leading issue is delayed delivery. The inference is clear, customers can tolerate, or even ignore delays if they know where their order is.

So, Why is Logistics Optimization Important for Customer Satisfaction?

As you have seen in this article, every dynamic element in the distribution and logistics movement can be optimized with tech. The collective benefit of all this is directed to the end-customer. They get a better delivery experience and are more inclined to stay with the brand, retailer, or e-commerce player.

Think about it, the delivery experience is the last and most prominent influencing factor on the customer. As per our survey, 36% of customers might go for partially inferior products if they are assured a decent delivery experience (fast deliveries, order tracking, easy payments, and delivery validation). LogiNext covers all these bases and more. The client can boost their primary, secondary, and tertiary distribution legs with lower costs and high productivity.

It’s costlier to acquire new customers compared to retaining them. With proper logistics optimization, companies can not only retain customers but also boost satisfaction and lifetime value. What’s more, one perfect delivery can create a brand advocate that would convert three more customers. In this age of booming retail and e-commerce, logistics optimization is the best asset a company can have.

Cover image credit: Freepik