Distributed Logistics: how to efficiently respond to client's modern needs
Start by a Customer needs analysis which is the process of identifying what requirements the customers has for a service, a critical points analysis which reports of major factors that govern suitability. Every company should develop its own medium- long term distributed logistics plan which implements, and supervises the movement and storage of goods, services and information between an origin and point of consumption within a supply chain by identifying strategic goals and economic targets, and documents current conditions and outlines processes necessary to complete development.
As we have illustrated in the article “Logistics and Industry 4.0 The changes taking place", consumers buying habits are changing, and logistics need to adapt to this change modifying the services and introducing new ones. Keeping pace with rapidly changing customer demands, behaviors, and expectations has become a full-time job It is increasingly important to organise a modularisation of services, broadly speaking, modularity is the degree to which a system's components may be separated and recombined, often with the benefit of flexibility and variety of the clients needs.
What are some of the practises to consider when meeting clients modern needs? Read on to find out.
1. Exploit the potential of Omnichannel
At its core, omni-channel is defined as a multi-channel sales approach that provides the customer with an integrated customer experience. Omnichannel retailing has become the gold standard for success - the goal that everyone is supposed to be aiming for, but few know how to achieve. It provides a seamless, continuous customer experience across any device or location with a personalized experience. Developing an omnichannel strategy is a process that businesses embark upon, and that process can be made easier through connectivity. It has revolutionised the Logistic and Transport Industry. In these last few years, we have noticed an exponential increase of online channels, which have deeply redefined client/supplier relationship. In order to timely meet demands one should adopt a multichannel strategy and focus on designing a cohesive user experience for customers at every touchpoint: the key areas of innovation include, the development of warehouse space networks (in the USA FLEXE was founded), innovative solution providing retailers and brands full inventory control and visibility across the network, cost models based on proximity of the shipment and new last mile delivery solutions.
2. Optimize last mile delivery
Last mile delivery is the less efficient element in most supply chains and entails a cost, as final delivery destination which weighs up to 28% on total costs of transport.
For today’s clients, when we speak about shipment, we are not only talking about times and costs. Clients want to choose the modality of delivery and pick-up, indicating a precise delivery time, follow their shipment, modify the delivery location at the last minute, choose the type of packaging and so forth.
Consequently, by focusing on last mile delivery alternatives companies can provide and guarantee exceptional service levels to their customers and adapt to the constantly changing omnichannel. Technology in this sense, can create favourable conditions. An example: due to down town parking costs and vehicle bans, ecological means of transportation are being more and more utilized in Last Minute Delivery: in certain European Countries, cargo bicycles manage up to 60% of urban deliveries.
3. Exploit technology and Big Data
As we have said, the rapid change in preferences and demands from customers influence the Distributed Logistics Sector, there is a way to foresee the trend of demands: by using Big Data where a large amount of data is collected by a company's supply chain, which can be used to produce meaningful insights and give strategic direction to the company, understand precisely what data needs to be captured, tracked and acted upon –timely. Accurate and complete data can provide a holistic view of an organization’s operations and improve collaboration, both internally and with partners. It can suggestively improve productivity and competence in supply chains and provide businesses with an edge over their competitors by using 4.0 technologies. Thus, one can anticipate future impacts and constraints, daily, weekly, seasonal and event-triggered peak loads and plan adequate temporary storage and timely manage deliveries.
Not only: Big Data can help you enhance End-to-End Visibility – tracking and tracing the end-to-end movement of goods. Real-time load locations can help enable route adjustment (information on the shipment, weather conditions, traffic conditions and so on) allowing shippers in advance to create route deviation plans before the delivery or pick up is impacted.
4. Rely on a dependable and qualified partner
Support in processing insurance documentation, custom clearance Offer consulting services, identifying the best asset for shipments and more generally customized services: choosing a partner able to meet these requirements allows you the freedom to focus on critical operations of your business, leaving the logistics process to persons who have in-depth expertise and who will guarantee punctual deliveries. Confirmed by ISO 9001quality certification: “a strong relationship with few selected providers will improve the flexibility and the rapid response to market changes”.
In a digital era in which we are living, consumers have more purchasing power than ever. With e-commerce that drives their need to transparency, convenience and speedy delivery times, it is quintessential to create new business models and new distributive logistic solutions. Want to receive more suggestions on how to take advantage of all the new distributive logistics opportunities?