Explore the Top 10 Logistics Trends in 2025

how is customer service related to logistics management?

In other words, delivering a great customer experience is just as important – and sometimes more important – than the products or services on offer. To achieve this transformation, companies need to start viewing logistics through a service-oriented lens – requiring an understanding that logistics is not just about moving products but also about delivering experiences. It involves guaranteeing timely and efficient deliveries, minimizing disruptions, and providing exceptional customer service.

The platform also provides tools for the optimization of stock by employing auto-replenishment. The US-based startup Steamchain offers a blockchain platform that simplifies payment processes using its World Trade Logistics (WTL) smart contract system. WTL smart contracts enable B2B payments and prevent fraud by providing an immutable record of all transactions. ASRS assists in the management of product and material storage in automated warehouses that improve floor space utilization and do not require manual labor to operate. In addition, the software supports the decision-making of fleets over time by predicting conditions such as demand, weather, and traffic by employing machine learning techniques.

When evaluating 3PLs, ask about their shipping speed capabilities, the locations of their fulfillment centers, and their track record in meeting delivery promises. 3PLs work with multiple clients, which allows them to negotiate better rates with shipping carriers. These savings can be passed on to you, making faster shipping options more affordable. They can also help you implement strategies like zone skipping or multi-carrier shipping to optimize for speed and cost. If you need to hire rapidly to increase in-house capacity or invest in automation yourself, it might be more cost effective to outsource fulfillment to a 3PL.

You can take care of customs clearance yourself if you’d like, though we highly recommend that you find a partner that can alleviate this complex process for you and handle as many steps as possible. This is why it is essential to be aware of all the laws regarding customs clearance, or to choose a partner with customs clearance expertise who can handle this task ChatGPT for you. Your documents, how well they’re filled, and the type of your shipment, can all influence the time your goods will stay in customs clearance. This payment is then requested, and when it is received, your shipment is cleared and released from the customs department. This full process is mandatory, and it takes place every time your cargo crosses a border.

Belgian startup Alpega creates a cloud-based SaaS Inet transportation management system for end-to-end transportation needs. The software solution enables communication in real-time between manufacturers and a broad network of logistics providers. The Inet TMS automates logistics processes and consolidates transport demands into a single system. As the demand for online delivery grows and consumers’ expectations become larger, the need to optimize logistics has never been greater. As a result, software developers have set to work creating platforms designed to make the supply chain more manageable.

However, California, Texas, and Illinois offer a significant demand for supply chain managers, with average salaries still exceeding $90,000. In 2022, the company announced an investment of $50 million in automation technology and systems to enhance its parcel processing capabilities across its nine key parcel sorting hubs. Ninja Van expects to complete this by the second half of 2024 to increase the group’s overall operational productivity across Southeast Asia by 50%. Russia’s war on Ukraine also has effects on the supply and flows of goods, while disruption of supply chains and the West’s dependence on imports continues to intensify the debate about relations with China. Above all, there’s also the environmental challenge and the question of how to reduce CO2 emissions and deal with the costs for doing so.

transportation management system (TMS)

In that case, the software can guide you around traffic jams or weather warnings to reduce fuel consumption and increase delivery speed. Route optimization helps you identify the most efficient and cost-effective routes for transporting goods. For example, if you have warehouses in New York, Chicago, and Los Angeles, route optimization would send any orders with a shipping address closest to New York to that warehouse. According to Shopify data, shipping accounts for almost 9% of a business’s annual expenses, but over a third of new business owners said it was the most unexpected cost of starting a business. Shipping labels can eat into your logistics budget, especially if you’re shipping a low volume of orders. Demand planning involves forecasting customer needs to ensure you have enough inventory when orders surge or when external factors affect product demand.

how is customer service related to logistics management?

Traditionally, logistics has often been viewed as a necessary expense, a department focused solely on the movement of goods from point A to point B. However, in today’s competitive marketplace, this perspective is no longer tenable. Companies are recognizing the potential for logistics to be a value creator, rather than a cost center. You can foun additiona information about ai customer service and artificial intelligence and NLP. This shift in perception is driving greater business impact through supply chain logistics. As the connection between rising inflation and supply chain inefficiencies has become more evident, the value of achieving new levels of efficiency has grown. Innovative applications of AI in last-mile logistics empower companies to achieve those efficiencies by improving operations in various areas.

In fact, 94% of business leaders in one survey said that AI would be critical to their success over the next five years. And because operations management is foundational to how a business functions and stays competitive, using AI productively is essential. A 3PL provides a variety of transportation and logistics services to brands, while freight brokers act as an intermediary between brands and drivers. Freight brokers are different from 3PLs in that they’re specifically dedicated to matching up brands with drivers or carriers. Increasingly, 3PLs are also investing in their own delivery vehicles, which can support shorter distances and more frequent deliveries, and avoid clogs in the entire supply chain. With an existing network of fulfillment centers around the world and pre-negotiated carrier contracts, 3PLs may be less vulnerable to global shipping and fulfillment disruptions.

Total Quality Logistics offers the technology and connections necessary for businesses needing to transport their inventory anywhere in North America. Boasting a network of more than 90,000 carriers, the company can handle shipments big and small, and allows users to track their inventory, submit documents and more of its web portal and mobile app. More commonly known as UPS, United Parcel Service is reportedly the largest courier company in the world by revenue. And it has come a long way from its 1907 founding, outfitting its massive delivery fleet with IoT sensors that record hundreds of data points so that it can optimize package transport from warehouse to doorstep. Through AI and machine learning, UPS uses this data to reduce fuel consumption, allow for package tracking and provide faster routes to truck drivers. In 2019 the company also began dipping its toes into drone delivery, and says it will be launching its first fleet of eVTOLs in 2024.

Drones have the capability to reach remote areas, thus reducing the delivery time and cost. Physical robots, such as collaborative robots (cobots) and autonomous mobile robots (AMRs), are used to pick up and transport goods in warehouses and storage facilities. Moreover, software robots perform repetitive and mundane tasks that free up time for human workers. DHL is one of the largest third party logistics companies by revenue, earning $100.6 billion in 2022. Put this all together and you get a global third party logistics market worth more than $1 trillion, as of 2022.

ASCM Certified in Logistics, Transportation, and Distribution (CLTD)

For example, IoT can help with transparency and traceability to help boost food quality and safety by using sensors to monitor the temperature of perishable food while it’s in transit. Analytics can also help determine where to put smart lockers in densely populated areas to reduce the number of single-item deliveries and lower greenhouse gas emissions. Generative AI will be instrumental in addressing the energy sector’s dual challenge of meeting growing ChatGPT App global demand, while accelerating energy transition to net-zero emissions. Hamburg is worried that China might shift its shipping to competing ports in the Netherlands, Belgium, and Poland, where COSCO, Hutchinson Ports, and China Merchants Port already own shares. After controversial debates, the German government decided to limit the share to 24.9%. COSCO has not yet agreed to the compromise, even though a first deadline was set for the end of 2022.

  • Transportation analysts analyze data and statistics to increase the efficiency and safety of transportation processes.
  • Businesses that don’t start by simplifying their workflows can expect breakdowns in their AI-driven automation.
  • Costs decrease as efficiencies in moving products from point A to point B increase.
  • As these new dynamics are introduced, the supply chain struggles to adapt and effectively shift gears.
  • Timely information flow among stakeholders preempts disruptions, enabling AI to convert data into actionable insights that drive decision making.

Together we can be a trusted partner across all customers’ supply chains and bring our B2C expertise to Maersk customers with direct-to-consumer Fulfillment, parcel delivery and supply chain visibility in an end-to-end offering. One key to enabling risk-resilient and sustainable supply chains is digitalization. With a more digitalized supply chain, you can handle disruptions better, faster, and at a lower cost. These technologies have enabled the supply chain information worker to innovate, drive cost reductions, improve service and meet customer expectations better than ever. In order to have sustainable improvement in supply chain performance a business must have the right balance of investments in organization, processes and technology. Lack of investment and focus in any one of these areas will reduce a company’s ability to achieve fundamental, sustainable improvement.

With the growth of online shopping, FedEx has expanded its e-commerce solutions to support businesses in the digital marketplace. 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. Businesses that try to balance between AI deployment and personalised (human) customer experience, are likely to be more resilient whenever this technology does misbehave.

5 ways integrated logistics can improve customer experience – Maersk

5 ways integrated logistics can improve customer experience.

Posted: Wed, 29 Mar 2023 07:00:00 GMT [source]

From advanced tracking systems that provide real-time visibility into shipments to predictive analytics that optimize routes and inventory management, technology plays a pivotal role. Automation in warehouses and distribution centers has also improved efficiency and accuracy while reducing labor costs. A supply chain company specializes in helping other companies manage and optimize their supply chain operations, providing a range of services to improve their efficiency, cost-effectiveness and productivity.

Logistics refers to the strategic movement of goods and services from one place to another. A goal of supply chain management is to improve efficiency by coordinating the efforts of the various entities in the supply chain. This can result in a company achieving a competitive advantage over its rivals and enhancing the quality of the products it produces. The theme for supply chains this year is preparation in the face of uncertainty. To support resilience, organizations aim to tackle data governance and management and to leverage new technologies that enable greater visibility and create more effective scenario plans.

(PDF) Supply Chain Management and Customer Satisfaction in Small to Medium Enterprises – ResearchGate

(PDF) Supply Chain Management and Customer Satisfaction in Small to Medium Enterprises.

Posted: Tue, 22 Oct 2024 07:00:00 GMT [source]

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. The following are some innovative and impactful ways companies use AI to improve last-mile logistics efficiency. We’ve prepared a list of 39 high-growth logistics startups digitizing the industry, along with funding and search interest data on each company. 6 River Systems focuses on warehouse productivity, combining advanced fulfillment algorithms with its autonomous mobile robot, Chuck.

Transforming logistics’ role – From cost center to value creator

In a challenging market, the level of consolidation of smaller independent forwarders will likely reach new highs. On the one hand, enterprises without a niche will struggle to catch up to their bigger, more successful counterparts and lack the funds for key investments. On the other hand, bigger forwarders will seize the opportunity to acquire competitors and their accounts.

how is customer service related to logistics management?

Similarly, micro-fulfillment centers strategically positioned in urban areas reduce transit times. Crowdsourced delivery platforms tap into local resources for flexible, on-demand service. Philippino startup Actimai, designs, deploys, manages, and optimizes RPA solutions by leveraging AI and big data. The startup’s platform optimizes software robotic processes in order to deliver insights and analytics for process improvement.

With modern AI-based systems, you can optimize based on profitability to allocate inventory at the right time, every time. While technologies, collaboration tools, and AI/ML capabilities are becoming mainstream, key areas are still a challenge with the wrong approach, disruption, and disconnected solutions. Improving service levels, costs, margins, inventory in-stocks, and competitiveness is a moving target that requires technology investments. There’s a decrease in goods flowing from Asia to North America, which is creating rapid, once-in-a-lifetime shifts in global trade flow.

IoT’s impact on the logistics industry extends further by enabling predictive analytics for logistics companies to anticipate demand fluctuations. Such solutions also optimize routing and scheduling as well as minimize environmental impacts through fuel consumption tracking. Transportation analysts analyze data and statistics to increase the efficiency and safety of transportation processes. To pursue a career as a transportation analyst, a bachelor’s degree in logistics, business, or a related field is typically required, along with 2-4 years of experience as a customer service representative or logistics coordinator.

how is customer service related to logistics management?

The platform helps monitor the performance of a vehicle and sends critical alerts to the system using sensors and devices embedded in the vehicle. ShipMonk aims to streamline the complexities of direct-to-consumer and B2B omnichannel fulfillment by syncing directly with retailers’ sales channels so that it can automatically import orders. From there, ShipMonk stores, packs and ships each order using whatever method its algorithm suggests is cheapest and most efficient. The company’s 3PL services are specifically designed for e-commerce businesses, subscription box companies and crowdfunding campaigns of all sizes. Coca-Cola, General Mills and Target are just a few of the companies that use C.H.

As the economy is not picking up yet, and businesses keep a focus on costs, looking into optimisation makes sense. In order to keep up with faster fulfilment needs, 2024 will see the warehousing world speed up its innovations for quicker supply chain management, particularly focused on automation, better data management, and decarbonisation. On par, this will how is customer service related to logistics management? be done while implementing the latest safety measures and refurbishing older facilities so that brands can keep their integrated logistics flow smooth and resilient for what is to come. To be eligible to take ASCM’s Certified Supply Chain Professional exam, you’ll need three years related experience, or a bachelor’s degree or international equivalent.

“We’re going to accept this challenge and reduce the logistics cost to 8-10 per cent,” he said, when the government introduced its National Logistics Policy last year. The hydrogen generated there will supply the Shell Energy and Chemicals Park Rotterdam. This will partially decarbonize the facility’s production of fuels like gasoline, diesel, and jet fuel. As heavy-duty trucks are coming to market and refueling networks grow, renewable hydrogen supply can also be directed toward these to help in decarbonizing commercial road transport.

how is customer service related to logistics management?

The company consistently invested in its infrastructure, expanding its fleet and opening distribution centers worldwide. By the 1990s, FedEx had established a global presence, serving customers in over 220 countries and territories. As Global Trade reports, huge advancement with TMS has been the transition to systems that are API-based. API (application program interface) systems are usually cloud-based and allow different applications, regardless of their design or code, to exchange data and information with each other. This means forwarders can have a direct connection with clients and carriers to communicate and exchange data such as names, data, product information, inventories, carrier rates, etc. While managing the supply chain has always been a complex issue, the evolving intersection of tech, extreme weather events, geopolitics, and cybersecurity has introduced new challenges.