Over the years, online businesses have experienced tremendous growth, resulting in a massive increase in demand for logistics services. Because of the growing emphasis on the importance of timely and efficient delivery, many successful businesses have outsourced their logistics services to 3PL companies.
The logistics industry is rife with competition. Furthermore, the impending recession has exacerbated the situation, turning competition into a fight for survival.
Logistics companies must focus on becoming more competitive to improve customer satisfaction and attract more business. To outperform the competition, logistics firms are all focusing solely on one factor: “Pricing.”
This is a challenge because pricing alone does not provide a competitive advantage. All businesses must be competitive in pricing at some point. This works well not only for customers, who are always looking for lower prices and discounts, but also for the company. More so, in a market where competitors are constantly offering aggressive price package discounts.
In an environment where everyone is attempting to provide better pricing, freight forwarders and logistics firms must act intelligently and differentiate themselves by being more competitive in other important business functions and segments as well.
1. Forward Planning
The key to success is to plan the logistics efficiently. Planning based on historical shipping data can become a lucrative service option for freight service providers. Understanding and hedging, insuring, and covering the route risks can make logistics more reliable for shippers and cost-effective for all stakeholders.
Large and difficult consignments can become safer and lighter on the pocket for international transportation.
This is only possible when service providers at all levels can use past data to draw helpful insights. Another possibility is to provide the data to third-party neutral agencies who can analyze and draw insights helpful for everyone in the ecosystem.
2. Assistance with Technology
Across industries, technology has become a critical and core business function, and logistics is no exception. Effective use of IT in logistics operations gives companies a competitive advantage.
Logistics software applications play an important role in all these segments, including warehousing, freight forwarding, customs clearance, tracking and freight data visibility, information reporting, and customer support. A complete freight and logistics software solution aids in the integration of all logistics functions.
EDI collaboration and communication platform aid in the sharing of real-time information across the supply chain. The advantages of technology in logistics are numerous. Some of the benefits of logistics technology include faster communication, simplified operations, and improved customer interaction.
3. Supply Chain Interpersonal Relations
Industrial supply chains are significantly dependent on logistics and transport operations. Thus, maintaining an efficient logistical solution is the backbone of an efficient industrial operation. This is especially true during trying times, such as the impending recession.
A strong interpersonal relationship between the company and its suppliers and vendors is critical. Furthermore, effective communication aids in client acquisition and retention. As a result, good interpersonal relationships within the supply chain greatly benefit logistics operations.
4. Competitive Customer Service
Most of the time, LSP customer service teams spend providing customers with shipment status updates. Because this process is primarily based on human interaction, it is both time-consuming and costly. Freight forwarders and logistics companies can use freight data visibility solutions to automate and standardize cargo tracking, as well as send auto-alerts and updates directly to customers.
This type of automated management, as well as providing immediate solutions, provides:
– Customers with end-to-end visibility across the supply chain, and
– Reduces the time and effort spent on customer service activities, resulting in significant cost savings
Immediate, accurate, and timely communication of critical information is an asset that contributes to increased customer satisfaction.
Customer satisfaction leads to customer loyalty. Freight forwarding software that is integrated with CRM is the most effective tool for increasing customer loyalty and profitability. CRM’s in-depth analysis of potential customers helps in understanding customer needs.
Service providers can proactively address these needs and develop customer loyalty strategies for long-term relationships.
5. Utilization of Available Data
The value of data has increased dramatically because of the availability of simple analytics and reporting software. There are hundreds of transactions per day in logistics operations with thousands of partners in their global networks. Each of these transactions generates information. As a result, data analytics and reporting are critical for freight and logistics companies.
Data analysis for identifying various patterns greatly aids freight and logistics companies in more effectively managing their operations. Precise, crisp, and accurate information allows the company to optimize resource utilization, service offerings, and delivery times, among other things. This only scratches the surface. The advantages and possibilities are endless.
Competition leads to innovation and innovation is necessary for growth. ECU360 is an all-digital freight forwarding platform with a focus on continuous innovation with digital processes.
ECU360 is a result of a firm belief that data-driven innovation can lead to overall market development and benefit the end user. It is impossible to avoid market competition. However, it is possible to innovate and serve the industry’s demands better.
That is why ECU360 focuses on continuous improvement in operations through technology, freight data visibility and analytics. These capabilities give you the advantage of time and efficiency in your global shipping needs.