What Is Logistics? Meaning, Benefits and Examples 2024

Delivering Efficiency and Customer Satisfaction with a Leading American Logistics Company for Over a Decade

logistics and customer service

Whether you’re a small business or an enterprise corporation, Shopify Fulfillment Network through Flexport can help you deliver on your promises to customers so you can focus on growing your business. Alternatively, outsource the entire process to third-party logistics services, such as Shopify Fulfillment Network and Flexport. You can foun additiona information about ai customer service and artificial intelligence and NLP. As high-volume shippers, they often can pass on discounted rates to the ecommerce businesses they serve.

Thanks to our global coverage and scale, we can provide the same levels of services wherever the customers would like us to support them. 3PL involves outsourcing logistics operations to a third party, while dropshipping is a retail model where the seller doesn’'t keep products in stock. In dropshipping, the retailer transfers customer orders directly to the manufacturer or wholesaler, who then ships the product to the customer. Do the same with any third-party logistics providers you’re working with to process returns. Share your quality standards with them and do random spot checks to make sure imperfect inventory is flagged.

As the ecommerce market has grown exponentially, so too has the 3PL (third-party logistics) market, which will be worth $1.59 trillion by 2028. Shopify Fulfillment Network is always looking at what our business needs and incorporating those needs into their new services and features. As a business owner, fulfillment is only something you think about when it isn't working well and luckily I never have to think about it." Once items make their way back to your warehouse, build a dedicated workspace for inventory to be processed and inspected. Customers who return items because they purchased the wrong size can easily get a replacement in-store, eliminating the need for returns altogether.

logistics and customer service

As one of Thailand’s leading logistics industry players, the company is poised to support economic growth at both national and regional levels, offering comprehensive solutions to meet a wide range of needs. “Another prominent digital solution is the issuance of electronic Bill of Lading (eBL), which we have been providing since 2021, making us one of the pioneers in offering such digital solutions in the industry. MSC is also a founding member of the Digital Container Shipping Association (DCSA), which aims to set technology standards for the shipping industry to promote the growth of paperless documentation. This serves as a foundation for cooperation across the supply chain, supporting sustainability in global trade.

The Allen Lund Company has a logistics and software division, ALC Logistics, ranked 48th in the Transport Topics 2024 list of Top 100 Logistics Companies and an International Division licensed by the FMC as an OTI-NVOCC #019872NF. One pitfall businesses should avoid is deploying generative AI-driven tools that aren’t trained on business-specific information. The more internal knowledge your AI has, the better equipped it will be to provide helpful information to your customers and employees. Chatbots limited to generic information will quickly frustrate customers, potentially costing you their business. One important caveat to note is that companies must closely monitor chatbots serving this function to ensure they provide excellent service. It’s helpful to think of chatbots as capable but inexperienced—just like any new hire—that need managers to periodically tweak their engagement to ensure it meets quality standards.

Determine your return policy

Scaling to meet the growing demand for last-mile logistics without sacrificing profitability largely depends on leveraging AI to achieve greater efficiency. Consequently, inefficiencies in last-mile logistics have the greatest impact on customer satisfaction and customer loyalty. After more than two decades of success in the Thai market, MSC Thailand has built a strong foundation of customer trust.

  • The company provides real-time tracking, proactive notifications, and customizable delivery options, giving customers complete visibility and control over their shipments.
  • In 1981, the company introduced the “FedEx Priority Overnight” service, guaranteeing next-day delivery for packages within the United States.
  • Personalization has come to be an expected feature that ecommerce brands provide to customers today.
  • A good 3PL should also be able to provide reports and analytics, which lets you manage the process remotely and help you make better business decisions in the future.

Together, these improvements ensure faster delivery times and full compliance with customs regulations. Their evolving supply chain needs are increasing the demand for multiple modes of transport and to meet these needs, we’re bringing our company’s expertise and capabilities even closer together. Taking these steps are key to accelerating our transformation,“  says Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller - Maersk. I don’t do this job by myself without support; I work with different people and departments from around the world. I work with the One Team Customer Experience (OTCX) team who are based in India, they are a group of people dedicated to Polish customers. Together we divide up the tasks to share the workload, we help each other when we have lots of to do, and we manage to work collaboratively and efficiently.

The data analysis generates accurate pricing forecasts, enabling logistics companies to stay competitive in a rapidly changing market and improve customer satisfaction by offering competitive pricing. At Maersk, our suite of LCL solutions ensure that even the smallest cargo keeps moving for a big impact. Our local LCL product experts and global customer service teams ensure we’re keeping our delivery promise that your cargo reaches its final destination on time and as planned.

Effectively managing customer support is a critical component of efficient last-mile logistics. Any update to time windows and other key delivery details must be quickly processed and passed on to delivery drivers to prevent costly delivery issues. By working with Exotec and equipping our supply chain with Skypod® robots, we are positioning our after-sales logistics, and our Villeroy site in particular, at the cutting edge of innovation. Thanks to this solution and the teams in place, we will be able to increase the number of orders served by 25%, and reinforce our commitment to customer satisfaction, which remains a priority for all of us. “For example, having an understanding if a customer is searching for certain items on your website repeatedly but not clicking on any search results — someone needs to investigate,” said Anderson. We also provided the training and continuous feedback necessary to enhance the client’s processes.

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Similarly, reverse logistics processes often include recycling efforts to extract and reuse both components and raw materials from returned inventory. Find out how Swiss luxury retailer Globus has used insights from the Celonis platform to drive this omnichannel customer service excellence. Introducing logistics dashboards that visualize throughput times and cancellation and return rates in real time has decreased throughput ChatGPT time significantly, and reduced the overall cancellation rate by 20%. A reverse logistics operation is an increasingly important component of commercial success for retailers, manufacturers and e-commerce operators — essentially any business selling products rather than services. Optimized reverse logistics means an efficient flow of goods throughout their lifecycle, with maximum value being extracted at each stage.

Maersk Spot was launched in mid-2019 to offer confirmed bookings and loading guarantee to the customers. This is especially notable because overbookings are rampant in the shipping industry, and Maersk Spot is expected to act as a trailblazer that will end the vicious practice. Guilhaume Leroy-Méline is the Chief Technical Officer for Business Transformation at IBM Consulting France. He builds intelligent and sustainable workflows leveraging Data, AI, Edge and Quantum technologies integrated with enterprise applications and digital experiences. During his 16 years’ experience at IBM, he worked for multiple industries including aeronautics, finance, telecommunication, manufacturing and logistics. He is also a lecturer in AI & Quantum (ESCP, Sorbonne University) and Scientific Director of PhD Students in CIFRE contracts.

This guide shares how to make the returns process easier for customers and your online store with reverse logistics. Additionally, how the returns process is handled by retailers has a material impact on customer satisfaction and their buying behaviors. It has been estimated that as much as 60% of consumers will read through a return policy. More broadly, consumers have become used to omnichannel retail and expect consistent service excellence across all touchpoints — including returns. Sub-optimal service levels here can cede competitive advantage to rivals and damage customer retention. One of the key strengths of the FedEx Business Model is its focus on customer satisfaction.

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The customer initiates their return and ships it back to the merchant’s warehouse. Here’s how to build a supply chain process that makes it quick and easy to handle returns, without falling short on customer expectations. Products involved in your reverse supply chain have been returned for a reason—be it that the customer ordered the wrong size or the item was faulty. A poor return logistics process leaves room for unsellable inventory to make its way back onto the shelf. Investing in a reverse logistics program clearly has its benefits, but there are pitfalls to be aware of when planning your new process. Here are some of the biggest challenges when dealing with returns—and how to overcome them.

The benefits of logistics automation - Renault Media

The benefits of logistics automation.

Posted: Mon, 15 Jul 2024 07:00:00 GMT [source]

Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions. Warehouses that store, ship, and handle returns are the most common type of 3PL, with many offering super-fast two-day shipping options. And, if you’re expanding globally, international warehouses can help build a global supply chain. Knowing how to refine product fulfillment workflows is a skill that comes with experience—one that retailers can lend from 3PL warehouses. There’s a reason the services of 3PLs are in high demand within ecommerce, no matter the industry.

Mediterranean Shipping (Thailand) Co., Ltd. (MSC Thailand) is strategically expanding its business with a focus on container shipping and value-added services. The company remains committed to technology, digital innovation, and sustainable operations, reinforcing MSC Mediterranean Shipping Company’s (MSC) position as a leading global shipping company. Lion Parcel acknowledged logistics and customer service that the logistics needs of customers across Indonesia presents opportunities and challenges, and with delivery demands increasing, it needed to provide “fast and personalised” customer service. Customers will benefit from improved inventory control and the flexibility to import/export goods without incurring duties, optimizing their supply chains and reducing costs.

Decide what to do with unsellable inventory

Thus, solutions that leverage AI to streamline the supply chain and make it more reliable have the highest potential for transforming logistics. Another advantage of logistics automation is the significant improvement in productivity. The Skypod® system can process up to 4,000 order lines per hour at peak times, reducing order processing time by a factor of six, from 120 minutes to just 20! The installation has enabled the company to increase its activity by 25%, while continuing to grow its workforce.

Let’s put that into practice and say hair straighteners are your most returned item. Three-quarters of people who return the item do so because they didn’t realize the product only worked on wavy hair. Prevent this from happening—and ChatGPT App your returns warehouse from being overrun with unsold inventory—by updating the product description on your website. Modern consumers want to know the brands they’re shopping with (and returning products to) are sustainable.

Outsourcing packing, picking, and shipping can save time on manual labor, especially if you’re partnering with a 3PL that uses automation. While there are steps you can take to prevent returns from overrunning your warehouse, ecommerce returns are an inevitable part of running a business. DTC furniture brand Floyd launched a resale marketplace to shift less-than-perfect inventory. The retailer collects unwanted items from a customer’s home and ships them back to the fulfillment center for quality inspection. Items are graded and relisted on the marketplace with a discount of between 15% and 50%. As part of your reverse logistics process, establish clear guidelines for when an item can be resold.

Set reporting and communication expectations

At the time, the logistics industry relied heavily on slow-paced ground transportation, leading to delayed and unreliable deliveries. Green logistics refers to efforts to minimize the environmental impact of logistics activities. This can include using fuel-efficient vehicles, optimizing delivery routes, using eco-friendly packaging, and improving recycling practices. As businesses become more environmentally conscious, green logistics is becoming an increasingly important consideration. Logistics and supply chain management are terms often used interchangeably, but they refer to different aspects of inventory and goods transport.

logistics and customer service

In the first half of 2023, we will deploy this new predictive logistics solution to our in-house customer service teams in a few countries. Then we will use the feedback from that soft launch to determine our roadmap for its full-scale deployment. And predictive logistics will also allow us to be much more proactive and service-oriented with our customers. For example, instead of just reacting to delivery issues after they happen, we will be able to anticipate them, and proactively propose solutions and options to the customer.

Founded in 1971, FedEx has become a global leader in logistics, offering a wide range of shipping options, including express, ground, freight, and international services. “Historically, there have not been many developments from a machine learning standpoint as to how product goes into and comes out of the warehouse,” says Downie. “That's rapidly changing.” Now, 3PL organizations can adopt AI-based warehouse management software with automatic slotting, which utilizes past patterns of product movement to automatically direct the handling of new inventory. KUALA LUMPUR, Oct 9 — Communications Minister Fahmi Fadzil has called on delivery and logistics companies today to utilise technologies such as electric vehicles (EV) and artificial intelligence (AI) to enhance services for customers. It’s all about ensuring that products and resources are in the right place at the right time.

The Transformative Power Of AI In Logistics

Dive deeper into the potential of hyperautomation and its impact on these industries by downloading our full report. In February 2023, Microsoft announced a new version of their search engine Bing, in which users can search via conversational prompts, powered by the same technology as ChatGPT. Around the same time, Google announced that they are working on their own AI-powered chatbot, Bard, likely in response to the immense noise made around the public nature of OpenAI's ChatGPT. A technology that revealed itself to be so transformative means that numerous companies started to seek ways to benefit from it, working on creating their own AI-powered chatbots. I take immense pride in Maersk's initiatives, especially their commitment to diverse abilities and making the workplace accessible for all.

And even with a large team powering your warehouse, processing returns and dealing with customer service queries is time consuming. Include a return form as part of your reverse logistics process for insight into your products. Analyze them to find areas for improvement—tweaks to make to your inventory that could limit the number of products being diverted back to your warehouse. Overcome that (and save your bottom line) with a streamlined reverse logistics process—one that is cost-effective and processes returns quickly and efficiently, resulting in faster inventory turnarounds. An efficient reverse logistics system handles moving inventory in the opposite direction. Customers expect to be able to return their items with no hassle and at little to no cost to them.

logistics and customer service

“Businesses need a complete view of their customers to deliver elevated customer service experiences and drive growth,” added Abraham. According to Salesforce, this has enabled service agents to manage and prioritise customer service cases, contributing to faster service response times and a 73 per cent reduction in case resolution times. Salesforce partner TMS Consulting is also supporting collaboration and coordination across Indonesia with the deployment of Salesforce Sales Cloud, Service Cloud, and Slack. This is intended to allow real-time access to customer data and smoother operational processes. Specifically, the integration has helped Lion Parcel’s customer service team to focus on problem-solving process so the team could be “more effective and measured”.

In fact, two-thirds of consumers would pay more for products with environmentally sustainable practices or values. The Inbound Logistics editors selected the Top 100 Logistics & Supply Chain Technology Providers—companies offering the innovations their customers need to optimize and streamline supply chain operations. Its strategic partnerships and acquisitions have facilitated further growth and expansion into new markets. FedEx’s business model is built on a foundation of flexibility, scalability, and adaptability, positioning the company for continued success in the future. FedEx operates an extensive retail network of FedEx Office locations and authorized shipping centers.

Once customers have chosen the desired service, they can schedule a pickup or drop off their package at a nearby FedEx location. The company offers shipping options, including next-day delivery, international shipping, and customized logistics solutions. FedEx’s tracking system provides real-time updates on package status, allowing customers to monitor their shipments throughout delivery. Invest in supply chain automation tools that integrate with your logistics and warehouse management systems to understand better how your business manages the physical movement of inventory.

logistics and customer service

Full logistics service providers, like the Shopify Fulfillment Network, offer end-to-end solutions that get orders to your customers easily and quickly. With a vast network of strategically located fulfillment centers nationwide, full-service 3PLs like ours make sure you have the right merchandise at the right location, so orders ship faster and more cheaply. 3PL involves outsourcing logistics and supply chain management functions to external service providers.

Almost one in three customers (32%) would leave a brand they love after one bad experience, while 44% would completely abandon that business after two or three negative experiences. In other words, delivering a great customer experience is just as important – and sometimes more important – than the products or services on offer. Over the years, FedEx expanded its services to include international shipping, ground transportation, and logistics solutions. In 1981, the company introduced the “FedEx Priority Overnight” service, guaranteeing next-day delivery for packages within the United States. This groundbreaking service disrupted the industry and solidified FedEx’s reputation as a reliable and efficient delivery provider. In addition to its core delivery services, FedEx has diversified its business to include other offerings such as e-commerce solutions and supply chain management.

The company offers services such as fulfillment, e-commerce platform integration, and last-mile delivery. These solutions cater to businesses looking to optimize their e-commerce operations and meet customer demands. FedEx earns revenue by charging fees based on the volume and complexity of e-commerce services. Will let CEVA move from being just a “goods carrier” to focusing on customer relationships and customer services.