How Supply Chain Inefficiencies Harm Customer Experience

The ever-changing retail landscape looks vastly different than it did a few decades ago, and it will look completely different still in another 20-30 years. While this is an example, industries across different verticals have to contend with the logistics ecosystem, and the entrenched supply chain inefficiencies. To thrive in this new environment, businesses must adapt and make changes to quickly meet their customers’ wants and needs and avoid poor customer experience and loss of ROI and profits. Supply chain leaders need to start thinking about how collaborative logistics could make all the difference.

Poor Transparency and Inefficient Procurement Results in Longer Transit and Higher Fuel Surcharges

Many of the supply chain inefficiencies have to do with the actual delivery, managing, and tracking of both orders and driver locations. Without automated services and an up-to-date digital platform, shipping and logistics can quickly accumulate into hours of wasted time even under the best of circumstances. For instance, think about these usual delays and how they amount to longer transit times or delayed bookings:

• The driver takes 7 minutes on several calls to other providers during tendering

• The LSP can end up investing 13 minutes on necessary calls during the shipment process

• Carriers can end up on the phone multiple times before transportation is scheduled

• drivers themselves can be delayed by long hold times and delayed callbacks

• Added delays in scheduling drivers results in poor customer experiences

When shipments fail to arrive on time and the customer’s expectations are not met due to supply chain inefficiencies, it can result in poor reviews, lost sales, a shrinking customer base, and a loss of ROI across the company. The most successful and most famous shipping companies today have earned their success and reputation by handling shipping and transportation orders big and small. To overcome this problem, a digital logistics provider provides forward-thinking inventory management, automated system updates, streamlined order fulfillment processes, inbound and outbound freight coordination, data analysis and distribution, and open communication and transparency.

Limited Visibility May Lead to Out-of-Stocks

Supply chain inefficiencies that run rampant can have an impact on everything from deliveries to inventory. Running out of stock and turning down a customer’s order is a blow that no company wants to take. When you do not have a clear view of real-time data for orders, deliveries, and shipments, it can give rise to stock management issues, and fulfilling orders in a timely and efficient manner is quite tricky.  A 2017 article from SupplyChain247 highlighted this concept nicely: “This next generation of real-time supply chain visibility enables shippers to improve customer service and cost controls through the management of inventory in motion, proactive status updates, limiting disruptions and risk mitigation.” 

It Is Possible to Overcome the Supply Chain Inefficiencies That Lead to Missed Pickups and Deliveries

One of the most devastating ways that uncontrolled supply chain inefficiencies can sabotage any transportation company is missed opportunities. From missed customer orders, abandoned orders, late order processing, and missed deliveries, it all affects the bottom line and can have a massive impact throughout the entire chain. Thankfully, some things can be done to reduce the frequency and severity of these supply chain inefficiencies when they do occur:

1. Use APIs to connect the full supply chain to a single pane of glass chain setup
2. Connect the system to analytics platforms for data collection and processing
3. Track every step in the order-to-cash cycle process for shipments, big and small
4. Ensure driver compliance with tracking, updating, and delivery requirements
5. Eliminate check calls with automated reporting and a streamlined approach
6. Ensure the system automatically updates data across all supply chain partners

Boost Customer Experiences With Collaborative Logistics

The best way to create positive customer experiences lies within creating a collaborative resource and avoiding miscommunications that contribute to poor experiences. Start by learning what’s impacting your customers, and then take the next step by unifying your systems. Turvo is here to help shipping and transport companies eliminate supply chain inefficiencies and improve their customer reach and bottom line by embracing automation and improving system setups. Visit Turvo online to learn more.