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Why Good Logistics is so Important

Why Good Logistics is so Important

For most of us, our knowledge of the logistics process goes as far meeting the mailman at the door and signing for your package.

The industry is worth trillions and, for big and small businesses alike, running a well organised supply chain is crucial to their success, and the process is continuing to evolve to keep improving the end-user experience.

But what are the main reasons good logistics are essential in modern society?

Top Service

From a business perspective, customer experience is everything, and in an ever-increasing culture of convenience, even next day delivery isn’t quite good enough in some circumstances.

In the last decade, one-day deliveries have gone from a super-premium service to a relative expectation with bigger retailers, and the only way this is achievable on a large scale is through an efficient and constantly improving logistics operation.

From a personal standpoint, that level of expectation still exists, with individual customers looking to businesses like Parcel2Go for quick, good value solutions that meet their needs.

Improving Efficiency & Reducing Costs

With online markets growing and the ‘death of main street shopping,’ businesses have realised the significant financial benefits of bringing logistics in-house or developing strong outsourced partnerships with major logistics companies to meet their shipping needs.

With advances in the process making the supply chain more transparent, businesses are able to identify ways to save on costs and time.

Optimise the Supply Chain

Speaking of supply chain transparency, good logistics means being able to analyse and understand every stage of your supply chain from initial send out to receiving of goods.

Top logistics brands will be able to track a shipment, collect data on inefficiencies and create reports for businesses to know where things can be improved as well as where performance is optimal. From here, cost saving measures can be introduced which, for a major business, could mean millions in savings.

A clear supply chain process also improves customer experience in terms of their ability to ‘track their package’ and manage their expectations.

Positive Business Results

Go on the reviews page for a major product on Amazon and take a look at the one or two-star reviews. A number will be dissatisfaction with the product itself, but a considerable amount will be based on late arrival, damaged goods or a lack of communication from the seller in the event of an issue.

The latter three reasons are all based around logistics. Operate with poor logistics, and you are likely to disillusion customers who expect a level of service that will almost certainly be met by your competition. 

Use good logistics to provide quick postage, well packaged items and offer clear communication and you will expand your customer base through a reputation for great service.

It may be an industry in the background, but modern logistics is the silent giant upon which the world keeps ticking over. As online life takes over, expect the importance of logistics to continue to grow.

Business

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