2024.07.24
Here’s why logistics providers need to become more customer-centric
Customer expectations are evolving fast. Here’s how logistic providers can provide services that go the extra mile.
Customer centricity is rapidly emerging as a core principle and a force capable of reshaping the logistics industry. At its essence, customer centricity in logistics signifies a fundamental shift from viewing transportation as a mere mission to recognizing it as a value-added service. As our industry transitions towards a more commercial direction, with transport playing an important role in the total price, the importance of understanding and meeting customer needs has never been more critical.
Indeed, customers are seeking comprehensive solutions that go beyond the traditional role of logistics. The evolution towards a value-added service model prompts us to move beyond merely responding to customer needs; at GEODIS, we are focusing on delivering tangible benefits and gain a profound understanding of our clients' expectations. Customer centricity, in this context, is not just a strategy; it is a necessity. In this article, we’ll delve into the significance of customer centricity in this new era of logistics, where understanding, adapting, and delivering value are the keys to sustained success.
Supply chains strengthened while under pressure from COVID-19
The COVID-19 pandemic acted as a catalyst, propelling the logistics sector into the spotlight as an essential service. During this challenging period, as a matter of fact, GEODIS net promoter score surged as logistics operators were recognized for their indispensable role. The reliability of our drivers, their adherence to schedules, and comprehensive training became emblematic of the sector's commitment to excellence. While the pandemic-induced economic slowdown impacted our services, resulting in lower volumes and activity, it also sparked a crucial dialogue about the logistics industry's role between us, our customers, and society at large. This added scrutiny pushed us to become more flexible and to fortify our capacity to understand customer expectations and to provide personalized solutions.
As global supply chains faced unprecedented pressure, our response as a global logistics group, was to become more interconnected across Europe. Establishing operations from Poland to the Iberian Peninsula, we fostered cross-cultural cooperation that required effective communication and common tools such as Salesforce, to ensure quality and satisfaction for our customers, no matter their location. This exemplifies our commitment to go beyond traditional logistics, engaging with customers through various channels, including social media, and leveraging our local language-speaking teams on the ground. Similarly, our highly trained and specialized drivers, such as those serving chemical plants, play an instrumental role in realizing customer centricity in the post-COVID world.
In essence, the pandemic intensified our clients' demand for service quality throughout the logistics chain, from the first stages of the ordering process to the final stages of drivers delivering packages. Through these experiences, our industry emerged stronger, showcasing our ability to provide tangible benefits to our customers while adapting to the new world with resilience and innovation.
Beyond routes and loops: How environmental stewardship goes hand in hand with customer care
Over the past 15 years, GEODIS teams have tried to be unwavering in our commitment to customer-centric practices, using feedback from regular customer surveys to identify trends and continually adapting our strategies. Prioritizing Corporate Social Responsibility (CSR), we have taken significant steps to reduce our CO2 emissions by embracing alternative fuel sources like biodiesel, and implementing state-of-the-art AI for route optimization. Similarly, optimizing supply loops and routes remain a constant focus for both economic efficiency and sustainability.
Collaborating with customers, our logistics experts set short-, medium-, and long-term goals to minimize empty kilometers and employ multimodal transport options, such as sea, air, freight, road, and rail. Investments in electric vehicles with extended ranges and the development of hydrogen transportation through strategic partnerships underscore our commitment to reduce GHGemissions. Moreover, the vision of customer centricity extends beyond technical solutions. Our teams also tackle diverse client challenges, including setting the highest quality standards for our brick-and-mortar store logistics associated to transport. We have also elevated our customer service capabilities to effectively handle complaints and returns.
As logistics takes on greater significance, these evolutions must be viewed as an opportunity to pioneer customer centricity in the logistics industry. This ongoing commitment ensures that the GEODIS group not only meets but exceeds client expectations, offering a value-added service that sets new standards in the logistics sector.
Adapting to evolving trends
Navigating the cultural dimensions of customer-centric logistics, GEODIS responds to a dynamic landscape shaped by legislative initiatives and market trends. Recent legislative shifts in Germany and France, for instance, underscore the evolving regulatory environment. In the realm of multimodal operations, CO2 savings vary across countries, reflecting the diverse challenges and opportunities in each region.
Similarly, major automotive players globally, including in the EU and Asia, are steering toward innovation with a surge in IT components in vehicles and a collective shift towards Electric Vehicles (EVs). As the automotive landscape undergoes this technological overhaul, standardization becomes a shared trajectory among industry giants, enhancing competitiveness and meeting customer expectations for innovative transportation solutions.
In the domain of food distribution, a transformative wave is evident, with a move towards proximity to end-sales points and smaller shops. Packaging evolution aligns with sustainability goals, incorporating practices like "Cross-Dock" adopted for various sectors to adapt to border crossings efficiently, and meeting the demands for a more sustainable distribution.
Recognizing the importance of diversity, GEODIS strategically builds teams reflective of global markets. Welcoming both junior and senior employees from a variety of countries, the company makes it possible to adapt to diverse local contexts and cultures. This emphasis on diversity aligns with the heightened focus on personalized customer experiences and the evolving expectations in the post-COVID world.
Amidst changing client setups, our teams remain agile, mirroring the evolving needs and expectations of its customers. This commitment to adaptability positions the company as a flexible and culturally attuned partner in the dynamic landscape of customer-centric logistics, ensuring satisfaction, trust, and loyalty in the face of evolving risks and demands.
Conclusion
In a logistics sector that is increasingly defined by customer expectations, we need to understand that the journey is as crucial as the destination. That’s why at GEODIS, we actively seek feedback from our customers, using it as a roadmap to refine and enhance our services continually.
Beyond the mere delivery of goods, our goal is to go the extra mile, ensuring that each trip provides not only seamless transportation but also added benefits. As we navigate the dynamic terrain of customer-centric logistics, GEODIS stands as a reliable and innovative partner, dedicated to exceeding expectations and creating value at every step of the supply chain journey.
