How not to lose to the competition?

The sophisticated client.
In the realities of a rapidly changing free-market economy, the client has already seen a lot and formed an opinion on the subject. They know the rules governing the logistics industry and know what they can demand from operators. Therefore, today no company that counts on the market can afford to lag behind. To meet expectations, logistics companies should not only fulfill client requirements but also have a proactive character and always stay ahead of them. The four classic elements of the marketing mix that were effective at the beginning of the 1990s: product, price, promotion, and distribution, are no longer enough today. Currently, market leaders are companies that use innovative solutions; they are able to quickly introduce new services to the market and minimize the time between placing an order and its fulfillment. In the logistics services market, the reaction time to client needs counts, not only the current ones but also, and perhaps above all, those that may arise.

It can therefore be said that the foundation of client satisfaction lies in three elements: speed of response to their needs, reliability and quality of service, and proper relationships.

Just-in-Time

Time is money, but both should be respected, especially if both belong to the client. Competitive companies are therefore those that integrate their operations with the client’s processes. Starting from the exchange of data between computer systems and ending with the handling of shipments, which allows for a significant reduction in order fulfillment time. That is why logistics operators are increasingly offering their clients the handling of the entire supply chain – from picking up goods from the production hall, through transporting them to warehouses or terminals, packaging, to delivery to the recipient. And all this while maintaining the Just-in-Time principle, which consists of delivering orders in such quantities and with such timing to eliminate (or significantly reduce) the accumulation of inventory.

Managing the supply cycle requires simplifying and streamlining a complex system of actions often performed “by memory” in a linear manner. However, it is worth considering each type of order individually and reconstructing the process to optimize fulfillment time, for example, by reducing the number of reports. You can also appoint a special team to analyze the order and coordinate its execution, taking into account its specific requirements.

Providing competitive logistics services today requires modifying the basic service and expanding it with new offers. One of them is forwarding, which allows for saving the client’s time. In this case, all activities related to, for example, customs clearance, consulting, or issuing invoices on behalf of the client, and even inventory management or complaint handling, remain in the sphere of the logistics operator’s activity.

With the increase in the number of companies in the logistics industry, the competitiveness of the services they provide has also increased. However, the position on the market began to be determined not by the number of orders executed, but by the care for the quality of customer service. And quality is not certificates or diplomas hanging on the walls. It is not only the ability to fulfill, but also the ability to anticipate client expectations; quality is also the company’s reputation, which a team of people works on for years. All this so that the client who has used the company’s services once will return to it again. For them, price does not count, but understanding their needs and ingenuity in their effective implementation. Price is a secondary element and has given way to the company’s credibility and client satisfaction, for whom the delivery of an undamaged shipment on time counts. To acquire and keep them, logistics operators must be increasingly flexible in their actions. They must be able to satisfy the often-changing needs of their clients by modernizing and increasing their own potential. It should be remembered that extending the reaction time in logistics processes can be associated with the risk of both deficits and excessive inventory levels. On the other hand, minimizing the reaction time to client needs leads not only to cost reduction and greater flexibility but also increases their satisfaction. And a satisfied client is a loyal client. However, the logistics operator must earn this loyalty.

In the era of the rapidly developing logistics services market, maintaining the achieved position is not given once and for all, but requires increasingly complex measures from operators. Acquiring, and most importantly, retaining a client is currently possible only with a skillful combination of logistics, marketing, and quality systems elements. Short order fulfillment times, professional service, the highest quality of offered services, and reliable information are factors that effectively help the company acquire the most valuable client – a loyal client. Partnership relations in the client-logistics operator arrangement also remain significant. The process of shaping these relationships is long-term and is based on constant contact maintained not only by individual departments but also by all company employees. The essence of such conduct is to create mutually beneficial relationships with clients. This is possible thanks to close, partnership cooperation of all participants in the supply chain. This results in delivering the right goods to the final buyer, at the right time, and for the right price. By incorporating such solutions into the company’s policy, the win-win principle (Your success is my success) is simultaneously implemented. It has replaced the win-lose principle (Your failure is my success), thus setting new horizons for cooperation, which are successfully used in relationships with regular clients and which, becoming the company’s business card, attract new ones. To sum up, it can be said that the reach of the market gained together with the client will be largely determined by the care for the client and the extent to which services will meet their expectations.