Strategic nature of the logistics customer service in the supply chain jan dlugosz pozna n school of logistics, university of economics in pozna n, poland abstract. It creates a value in using the 3pl that no other lsp has and which the customer will pay for. Apr 15, 2011 logistics service providers face various challenges like changes in customer expectations or technological breakthroughs 1. Customer value scm supply chain resource cooperative scrc. For me, customer centricity is a digital interface to the customer covering the entire experience from the first. Since companies are not created by customers but for customers, this is an opportunity to improve customer service. Strategic nature of the logistics customer service in the supply chain. A small but growing number of suppliers in business markets draw on their knowledge of what customers value, and would value, to gain marketplace advantages over their less knowledgeable. Order cycle time contains the basic elements of customer service where logistics customer service is defined as. Sep 18, 2014 this short video will give you an introduction to how logistics can generate customer value for your organization. The dhl trend radar is the key instrument for the global logistics community and has become an benchmark for strategy and innovation in the logistics industry. Even materials such as cardboard for displays can be shipped to a thirdparty logistics 3pl provider to be built and sent out with customer orders to eliminate one step in the process. Everything we do comes down to one thing creating value in supply chain and logistics. Creating the value of logistics needs to be viewed in two key perspectives customer s perspective and shareholders perspective.
A value chain is a series of activities or processes that aims at creating and adding value to an article at every step during the production process. The way of measure of product and service internal quality assurance external customer satisfaction customer value scm is naturally an important component in fulfilling custo. This article analyses customer satisfaction with logistics services. Outbound logistics marketing and sales customer service hr management technology development. By whatever name it is the sinuous, gritty, and cumbersome process by which companies move material, parts, and products to customers. Every organisation has supply chain and logistics pain. Thirdly, the concepts of customer value, the firms. Value proposition is needed for clevel supply chain executives and for 3pls and 4pls. Almost 3,000 graduates per annum with degrees geared towards the infrastructural and industrial needs of the country providing expertise in crucial fields ranging from commerce, ict to science and engineering. An analysis on the impact of logistics on customer service econstor. What customer pays total effort expended to fulfill 8. The effect of e logistics on the customer satisfaction.
If this strategy is to contribute to success, it must be based on cooperation among the supply chain participants, aimed at generating value for the end customer. Customer service supply chain management models for achieving customer satisfaction, supply chain performance, and shareholder value alexandre oliveira. The possibility to fulfill suchlike customer demands requires a high flexibility of logistics service providers to adapt their services 4. These are the folks who earn the highest marks from the csuite for being able to prove their value, impact and contribution. For example, many top retailers use smartsheet to optimize their retail value chain, enhance instore customer experience, ensure store workers are informed and compliant, and improve efficiency with a centralized, auditable system. Greifs strategic account manager and a team of greif experts from logistics, handling. What is value chain management a multidisciplinary analysis of the groups supply chain with a view to optimising the business processes, supplier relationships and business culture with a view to streamlining, simplifying and energising the business model as a result of which. They are implemented to customize products to meet individual european country requirements. Customer value scm supply chain resource cooperative. Effective development and management of supply chain networks helps businesses cut costs and enhance customer value.
New technologies are enabling greater efficiency and more collaborative operating models. Logistics processes and supply chains are important sphere for creating product addedvalue. Value cocreation in the interface between city logistics. Transport logistics chain consists of assets links and nodes and processes associated with moving freight. In military science, maintaining ones supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military stratagy, since an armed force without resources and. Logistics customer service in the supply chain considerably differs from the binary relation described in the. Dhl trend research regularly publishes a key instrument for the global logistics community the logistics trend radar. Weve been talking about this particular group of marketers for the past few years. Consumption value, as well as shareholder value, is created in the logistics sphere.
The ratio for customer value shows, that logistics management is almost unique in its ability to impact both the numerator and the denominator significantly. Customer satisfaction is very important for logistics companies seeking competitive. Hence, gaining an accurate, indepth understanding of customer value is imperative. One major challenge results from the homogeneity of many products logistics service providers offer 2. An lsp can use the value proposition to differentiate itself from the competition and to break. Transport and logistics create value in your customer journey. Now in its fourth year, the logistics trend radar is a dynamic, living tool that captures the development of society, business and technology trends. However, many companies are not aware of possibilities that logistics can offer regarding creation of value. Value added logistics val value added logistics val are a combination of logistics and industrial activities. Traditional supply chains have been designed to optimize the supplier companys internal operations. The council of supply chain management defines logistics management as.
Furthermore, there has been a trend over the last few years to consider logistics as a process that creates value. Third party logistics services explained, the different types of 3pls, and the various levels of outsourcing as a third party logistics services company, cerasis is always speaking to potential shippers as customers who are well, just plain confused about what the heck is a 3pl. Superior logistics services generate customer value through achieving efficiency, effectiveness and differentiationrelevancy which can lead to competitive advantage for the organization. Andy moses, senior vice president of global products at penske logistics, shared his. It must bring significant bottom line benefit within the company and to its customers. Logistics services segmentation logistics consulting. This short video will give you an introduction to how logistics can generate customer value for your organization. It is important to know, that the cost element of the customer value ratio is not only the purchasing price. Once youve completed your value chain analysis, use smartsheet to improve processes and reduce inefficiencies. Kent, fox 2004 assess impact of port inefficiency on. Why logistics is so important to supply chains any successful business leader will acknowledge the crucial importance of effectively organized logistics.
Logistics as a strategic role for the creation of customer value. Most logistics professionals and academics agree that logistics is an essential function within business. In principle, standard logistics services are granted. In order to establish and maintain a unique selling proposition logistics service providers have to separate themselves from their competitors by offering a different or additional service 5. Additionally, customers demand fast, reliable, customized, and costeffective logistics processes more and more 3. Companies need to select their customer value goals since the supply chain, market segmentation, and skill sets required to succeed depends on this choice. The challenge for logistics is to create appropriate solutions to meet the needs of these different value customer segments. Logistics value is created through standard logistic services, value added logistics services and specific logistics solutions. Creating value in transportation and logistics mckinsey.
Winning strategies will make the most of seven megatrends that are shaping the transportation and logistics. An average retailers reverse logistics costs for consumer goods are equal to 8. In the value exchange model, total value is the value created within the supply chain consisting of. Logistics value proposition create supply chain value. A value proposition built on yield management and supplier management is unique, creates competitive advantage and drives increased profits. Call it distribution or logistics or supply chain management. Synthesizing the most influential literature on customer value, below a socalled customer. The role of logistics service quality in creating customer loyalty. The cost of the pain is far greater than the cost of the solution. Supply chain management and the role of logistics while this is a course on logistics, in todays interconnected world, it is. This strongly con nects with the concept of customer equity, which has been defined as the sum of the discounted lifetime values of all customers and is based on.
This activity is part of service industry, whose main feature is that the origin of a service is caused by consumer demand and its recognition by customer satisfaction. To be willing to pay, a customer must derive value from a market offer. Five ways 3pls can add value value that goes beyond just cutting costs. The customer value approach focuses on how people choose among competing suppliers, customer attraction and retention, and marketshare gains. The purpose of this thesis is to explain the linkage between logistics and customer value. Jul 01, 2000 most logistics professionals and academics agree that logistics is an essential function within business.
Logistics trend radar, delivering insight today, creating. The value proposition must be focused on the customer, not on the 3pl. While customer satisfaction and cva may lead to the achievement of higher shareholder. Unlocking value by tapping into the digital customer journey in the following pages, we will explore the opportunities facing the transportation and logistics industry in terms of developing their service for customers to ensure that their offerings match the needs, expectations and diversity. They understand that implementing seamless logistics is a key element in keeping pace with customer demands and outperforming competitors. This book is published in the igi global book series advances in logistics, operations, and management science. Supply chains try to maximize the total value generated. The focus is on how customer value can be created through logistics. Military logistics in military logistics, logistics officers manage how and when to move resources to the places they are needed.
Thirdparty logistics providers 3pls can add value to customers that goes far beyond cutting costs. Order cycle elements transport time order transmittal time. Ancillary activities are be yond the basic activities, and extend the basic activities, such as payment collection, ecommerce, etc. Delivering value to customers is important to managers, leaders, and entrepreneurs alike. The value added processes that are performed on customer returns, as well as the whole returns process, have been described by the term reverse logistics.
Ideally, such operations are carried out as much as possible downstream in the supply chain. Pdf the effect of elogistics on the customer satisfaction. Pdf logistics management is one of nowadays tools to face economic challenges. The determinants of customer delivered value means are differences between the perceived benefits of the purchase and overall costs relating to that purchase. Answering three customer value questions is important in order to determine a companys customer value proposition. Logistics professionals should think of themselves as a customer facing portion of the company and strive every day to add value for their customers. Value added logistics id 185 freightways worldwide logistics. Transportation and logistics players cannot simply grow their way out of the situationaddressing comparatively low roic must be at the core of any value creating strategy. In summary, the customer buys not only on price but rather on value.
Consumer satisfaction with the quality of logistics services. Please enter your user name and password to enter this section. A solid vp turns the discussion away from price and toward the customer and his need. The impact of the logistics management in customer. Pdf the impact of the logistics management in customer.
Logistics management is that part of supply chain management that. By asking your existing partners to perform more value added functions, you can reduce the number of suppliers and streamline your supply chain. Research on logistics value chain analysis and competitiveness construction for express enterprises 3. May 01, 2012 creating customer value is the driving force behind a companys goals, and supply chain management is one of the means of achieving customer value. Adding value to your supply chain inbound logistics. Jan 19, 2011 the customer value approach focuses on how people choose among competing suppliers, customer attraction and retention, and marketshare gains. Pdf the impact of the logistics management in customer satisfaction. Sc1x supply chain and logistics fundamentals lesson.
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