Competitive advantages from a service orientation

Service makes a difference

With products becoming virtually identical, the company that offers the best service increasingly gains an edge over its competitors. In such cases, individual customer service actually becomes a bigger factor in a purchase decision than a good price. The logistics industry has recognized this need and is responding with new offers. Excellent delivery service, for example, contributes to customer satisfaction and creates an obvious difference among competitors. But delivery time is not the only critical factor here. The reliability, quality and flexibility of the delivery are just as important.

Logistics services must inspire

Customer satisfaction has become an important goal at nearly every company. And the reason is obvious: A company can start a long-term relationship with satisfied customers and can ultimately generate additional profits in the long term. In this context, a focus on the customer is a key prerequisite for creating regular or repeat customers. To achieve this, the company must remain in close contact with the customer in order to react quickly to changes in that particular customer’s needs.
In a time when many competing products are alike, logistics services that extend beyond basic requirements are becoming increasingly important. They create a good way for companies to stand out from the competition and ensure high customer satisfaction.
By taking this approach, logistics is venturing into areas that extend far beyond traditional warehousing and transport activities. In a reflection of this change, the supply chain can be lengthened from the point of sale Point of sale to the point of use, enabling someone like a dinnerware producer to equip stadiums during the World Cup. In performing these tasks, logistics assumes the traditional functions of specialty retailer and sales representative.
Another area experiencing far-reaching innovation is spare-parts logistics Spare-parts logistics . In this area, the short cycle time Cycle time required for the repair and replacement of defective parts represent both a challenge and an incentive for innovation. In addition, shortened product life cycles, technological advances and manufacturer-specific installation of neutral, functional components are additional challenges faced in efforts to offer products and services from different manufacturers as a type of one-stop shopping One-stop shopping . The list of examples could be continued ad infinitum. This in itself is a clear sign that the rise in customer orientation goes hand in hand with further differentiation of logistics services.

The elements of supply service

Generally speaking, logistics services are services related to the material supply of a company (supply service Supply service ) and to the delivery of goods to customers (delivery service Delivery service ). Both the delivery and supply services are largely comprised of the delivery time Delivery time , delivery reliability Delivery reliability , nature of the delivery Delivery condition and delivery flexibility Delivery flexibility [1].