Logistics Customer Service (Essay Sample)

Logistics Customer Service
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Executive Summary
Warehouse Direct management has performed well in the Australian online market, competing with other online retailers such as Catch.com and Amazon. To compete well and outshine its competitors, Warehouse Direct needs to integrate logistics customer service into its organisational structure. Logistic customer service has irrevocable benefits, making it essential for a company to outshine its competitors who use a product-driven organisational structure. Logistic customer service enables the organisation to understand the needs of its customers and develop products and services which will meet the needs of its customers. There are three key elements in logistic customer service: the pre-transaction element, transaction element, and post-transaction element. When fully adhered to, the three elements change the customer perception and quality and can have a big impact on the demand for a product or service. Also, Warehouse Direct should differentiate its customers because customers have different preferences. The company can group the customers based on their needs. Therefore, the company should concentrate on meeting those needs as a group, which will maximise returns and increase customer satisfaction.
Logistics Customer Service
Organisations integrate different market structures in producing their goods and offering services. Organisations are either product-driven organisations or market-driven organisations. Product-driven organisations derive their focus internally and are focused on designing superior products distinct from their competitor’s products. They rely on salesforce to create the market for their products. However, the current trend in the market has proved the product-driven market structure to be futile, and thus the organisations have shifted to the market-driven structure. In a market-driven structure, the organisation becomes mindful of what the customer wants and flourishes products and services to the customers' requirements. Also, the organisation significantly stays aware of how competitors are responding to the customers. The market-driven structure is the foundation of logistic customer service, as organisations become aware of the customers' needs and tend to produce goods based on the customer's needs. Warehouse Direct performance has been exponentially booming currently. However, the company’s earnings will exponentially increase when it considers logistic customer service services, utilises the elements of logistic customer service in its operation, and groups customers into different levels and classes.
Importance of Logistics Customer Service
Logistics customer service is essential due to the continual increase in customer expectations. Customers have developed expectations that a product should satisfy the continual accrual of demand for the product. An organisation striving to survive in the current market needs to adapt customer service since the customer service will enable the company to succeed in the market and outshine its competitors (Rosen 2018). Logistics customer service pays scrutiny to the gradual increase in customer expectations and provides products that meet those expectations. The use of logistics customer service will enormously increase demand for the organisations' products which will implicitly increase the organisation's returns.
Consecutively, logistics customer service is monumental due to the exponential growth in access to information. Access to information is crucial for people to have a viewpoint, efficiently manage and hold the state responsible, and engage in informed debates about life-changing decisions. It is viewed as critical for empowering all citizens, particularly vulnerable and excluded individuals, to assert their widening privileges. However, the potential contribution to good information governance lies in the government's willingness to be transparent and the citizens' ability to seek and use information, which may be restrained in low-capacity settings. Due to the increased demand by people to have access to information, there has been an exponential increase in access to information in all fields, resulting in customers making informed decisions on the products to buy (Carver,2019). The increased access to information has made it vital and a prerequisite for organisations to fathom what the customer wants and develop products and services based on the clients’ requirements. An organisation that heeds to the customer's requirements has an added advantage. The customers will undoubtedly buy the product that meets their needs and not because of a lack of information on the goods available in the market. Therefore, an organisation that heeds to the customer wants can succeed and flourish in the current market in contrast to an organisation driven by designing superior products without heeding the needs of its customers.
Also, logistics customer service is paramount due to the decline of branding in marketing. According to Westerman (2022), people want personal service, but they do not necessarily need it from a person. Customers want to feel valued and honoured by the seller even though they do not have physical interaction. The current trend tends to devalue the power of branding, where customers used to buy products from companies with strong and magnificent brands. Currently, they can buy goods from firms even with no proper branding but have mastered the art of offering personal service in their marketing. The new trend illustrated the importance of logistics customer service and proper customer service. The organisation can understand the needs of its customers and produce products and services which will meet those requirements.
It is important to heed the customers’ needs because customers accept substitutes. By providing consumers with similar products, substitute products increase utility. However, from a business perspective, substitute products create fierce competition. As a result of the high promotion and advertising costs associated with contending for sales volume, businesses' operating profits may suffer. Certain businesses are even forced to close their doors due to substituting products significantly outshining their offerings. Logistic customer service is important because the organisation considers and comprehends customers' wants and develops products and services to meet the customers' wants. The customer will tend to buy the product which meets their wants instead of buying superior products which have not considered their wants.
Logistics Customer Service Elements Warehouse Direct Should Consider
To fully increase its customer relation and returns and compete with its competitors such as Catch.com, Kogan.com, and Amazon, Warehouse Direct should fully utilise all the elements of the logistics service elements in their operation. Logistics customer service is classified into three elements: pre-transaction, transaction, and post-transaction. Efficient manipulations of the logistics customer service elements will enable Warehouse Direct to outshine its competitors in online retailing in Australia.
Pre-transaction Element
It is the period before the actual transaction or interaction between Warehouse Direct and its customers. The core role of this element is to create an enabling environment that allows for superior customer services. It requires high-notch management decision-making and involvement in customer interaction. In this period, the organisation should communicate the policy to the public, setting expectations and influencing perceptions of service delivery. The Warehouse Direct organisation structure must support the policy, and therefore the organisation must be market-driven rather than product-driven. Being market-driven, the organisation will be able to consider and understand the customer wants and develop wants and services that meet the customers' wants. The element also requires the organisation structure to be agile for unplanned events during customer interaction.
Transaction Element
It is the period when the actual interaction between the Warehouse Direct sales team and the customers. It is the action that directly results in sales and the delivery of the product to the customers. Through logistics customer service, the organisation must ensure products are readily available to the customers through the holding of inventory. Order cycle time, which is when the customer orders a product and when it