The CX of LCL: How LCL logistics can deliver better customer experiences

How AI Can Deliver a Better 3PL Customer Service Experience

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. Vorto aims to help businesses make their supply chains more economically and environmentally sustainable.

The intelligence is truly “artificial” where warehouse workers can be replaced by robots for many of the tasks performed. Additionally, AI-driven sensors and cameras enable real-time tracking and monitoring of inventory, allowing for better inventory management and reduced losses. This creates an abundance of new, real-time data in the warehouse that can be used for predictive analytics and improved controls of the warehouse processes. Supply chains are also becoming digitised in terms of how data is being created, stored, and analysed. Years of investment in the deployment of sensors, cameras, IoT devices, and integrations have helped to digitise the physical movement of goods and has significantly increased the volume of data created throughout supply chains. In addition, while data was traditionally stored in on-premises warehouses (that were difficult to access, integrate or innovate with), we now see the emergence of cloud-based systems.

These improvements helped the company grow revenue by 25 percent, mainly from an increased rate of product introductions. While FedEx faces competition from these companies, it collaborates with some through partnerships and alliances to enhance its global reach and service capabilities. Each step in the process is complicated by the need to create, prepare, package, ship, and unpack the product at each of its successive destinations but it can result in lower costs when it’s done effectively. This database holds fact sheets on Travis Air Force Base weapons, organizations, inventory, careers and equipment.

For example, a car mechanic might need to coordinate the delivery of various parts from suppliers to their garage. Logistics is getting resources—people, materials, and products—from their point of origin to their destination, efficiently and on time. Logistics refers to the process of storing, coordinating, and moving resources to a destination as needed. “It’s all about helping our customers to help themselves,” said Shannon Calhoun, DLA Logistics Operations’ customer support deputy director, referring to agency’s warfighter focus. One pitfall businesses should avoid is deploying generative AI-driven tools that aren’t trained on business-specific information. The more internal knowledge your AI has, the better equipped it will be to provide helpful information to your customers and employees.

2024 Top 100 Logistics & Supply Chain Technology Providers – Inbound Logistics

2024 Top 100 Logistics & Supply Chain Technology Providers.

Posted: Thu, 28 Mar 2024 07:00:00 GMT [source]

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility. In a similar vein as technical information, data science and analytics is a relatively new arena for medical materiel, he said, helping to better “see ourselves” and provide a clearer picture of true readiness. It enables the compilation of historic data and the use predictive modeling to project potential failure points and maintenance needs in the future. Additional capabilities will come in the form of technical information and logistics management specialists.

AI in Supply Chain and Logistics Examples

AI-powered chatbots and virtual assistants can provide 24×7 service, resolving common issues and enhancing customer experience. For example, Bouygues Telecom used generative AI to extract and analyze call center data, enabling workers to make personalized suggestions and solutions in real time. This personalized approach led to a 30% reduction in pre- and post-call operations and is projected to save over USD 5 million.

• By training on historical data, AI models can quickly identify unusual patterns and outliers that might signal quality control issues.
• And it relies on blockchain technology to keep a digital ledger of shipments and monitor transactions.
• And its Origin bot uses LiDAR and computer vision technology to navigate, as well as eight cameras and sensors so it can maneuver alongside its human counterparts.
• It also uses blockchain technology to solve data discrepancies in its invoice and payments process for freight carriers (a common problem in the industry).
• Inventory management is all about keeping track of what’s in your warehouse or store and ensuring you have enough stock to meet customer demand.

Shippers need to assess their own expectations and the value they place on services before engaging a 3PL. “The delivery experience is a vital part of purchasing a KraftMaid cabinet,” says Tom Bolden, director of logistics for Masco. “We often raise the subject, and they are typically in favor of it. After a few months, they say they would miss having the data if we stopped providing it. We think it’s a competitive differentiator.” Service providers such as 3PLs must invest in people, processes, and technology to deliver high-quality service, but not all shippers are willing to pay for that. So the provider must develop strategies to serve each shipper at its desired level of service, without creating fragmented processes that result in inefficiency. Supply chain management is the handling of the production and distribution process of goods and services.

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The EMO Trans network comprises a highly vetted group of partners with whom the company collaborates to develop products and strategies to deliver reliable and comprehensive services globally. This network also enables EMO Trans to be highly efficient in local operations as it possesses the expertise to expedite the shipment process by leveraging its knowledge of local regulations. Additionally, it has established contacts who can communicate directly about customers’ shipments while in transit, ensuring that the shipment is handled with utmost care and professionalism. H2O.ai is simplifying supply chain and manufacturing duties by encouraging businesses to embrace AI. Leaning on AI and a cloud platform, H2O.ai can forecast demands and returns, detect faulty machines and anticipate when maintenance will be needed. The company also supports logistics organizations with driverless AI vehicles to meet inventory and production requirements.

This is just one example of how Mondelēz cultivates a growth and collaborative community amongst its people. While CIC agents and customer account specialists regularly use CSM, the goal is to increase the number of CSM users and improve the quality of information and overall efficiency of customer services. Goods arrive at the warehouse, get processed by the team, and then move on to the shelves. However, what should be a seamless process can be fraught with inefficiencies that increase labor and handling costs and threaten on-time delivery. The use of Internet of Things (IoT) devices across supply chain operations also provides AI systems with a wider range of data, leading to more comprehensive insights. IBM applied several of its AI-driven supply chain solutions to its own operations, leading to USD 160 million in savings and a 100% order fulfillment rate even during the peak of the COVID-19 pandemic.

For more information about CSM and the release of new features visit DLA’s customer service management webpage. The power of artificial intelligence (A) lies in its capability to solve pressing problems. In logistics, those problems are often related to inefficiencies resulting in supply chain breakdowns. Thus, solutions that leverage AI to streamline the supply chain and make it more reliable have the highest potential for transforming logistics.

By reducing wasted warehouse worker footsteps, the 3PL organization becomes more productive, more cost-effective, more accurate, and nimbler. It can ship orders more quickly and less expensively, providing end-user satisfaction and decreasing client expense. 3 min read – Solutions must offer insights that enable businesses to anticipate market shifts, mitigate risks and drive growth. Studies show that the average price for a storage container has increased by 20% in the past year alone. Instead of spending extra money on a bigger warehouse, maximize your square footage with intelligent warehouse design. Logistics management ensures that the right amount of goods arrive safely at those locations, exactly when required.

Tancredi has seen more companies shift to a 3PL-centric model amid the volatile demand environment of the past few years. Emerging, fast-growing companies will likely face challenges insourcing their fulfillment operations due to capacity management issues, he added. Business size, growth trajectory, distribution costs and customer service needs are among the top factors to consider, experts say. A qualified logistician plans out the logistics process and coordinates the steps as inventory and resources move along the supply chain. In simple terms, the goal of logistics management is to have the right amount of a resource or input at the right time, get it to the appropriate location in proper condition, and deliver it to the correct internal or external customer.

Furthermore, by leveraging the container management capabilities of Kubernetes deployed on a AWS cloud, the platform provides high scalability, availability and security with self-healing runtime environment. “Sometimes you have the dichotomy of what your organizational culture happens to be as a brand, versus what you have to do inside the warehouse environment,” Acharya said. Primary responsibilities include overseeing and managing inventory by arranging for appropriate transportation and adequate storage for the inventory. Manufacturing companies may choose to outsource the management of their logistics to specialists or manage logistics internally if it is cost-effective to do so.

This groundbreaking service disrupted the industry and solidified FedEx’s reputation as a reliable and efficient delivery provider. In addition to its core delivery services, FedEx has diversified its business to include other offerings such as e-commerce solutions and supply chain management. Through strategic acquisitions and partnerships, FedEx continues to expand its capabilities to meet the evolving needs of its customers in a rapidly changing world. Successful logistics management ensures that there’s no delay in delivery at any point in the chain and that products and services are delivered in good condition.

I have been a project manager within our Customer Service & Logistics Center of Excellence (CS&L COE) for the last 13 months. In this role I manage project lifecycles from scoping through completion, to ensure stakeholder expectations are met by delivering on critical milestones and having strong communication. This role has given me the opportunity to learn more about the strategic planning process for key business initiatives, by working closely with project leads across multiple functions.

Specialized training in supply chain management and logistics often includes core or elective courses, or even discrete programs of study, in business education. A business degree that emphasizes these skills—or in some cases, a technical degree in systems analysis or database management—is usually necessary to begin what is often a well-paid career as a logistician. The increasing intricacy of supplying companies with the materials and resources they need, along with the global expansion of supply chains, has led to a need for specialists known as supply chain logisticians. Excellent customer service has become table stakes for 3PLs offering value-added services. 3PLs sometimes look for rewards, revenue-sharing opportunities, long-term contracts, or a combination of these when they commit to delivering customer services that have a significant impact on boosting growth or reducing costs for shippers. Clarity is critical in this step; if two parties can have different definitions for something as seemingly clear-cut as on-time delivery, then a softer metric such as customer service is even more important to spell out.

Recent estimates show that major retailers can lose 3 to 4 percent of revenue per year due to shelf stock-outs, while inventory is available somewhere in the value chain. Better coordination of store-level product availability would have a significant impact to the entire value chain for these retailers. Additionally, better visibility of retailer product availability can reduce overall logistics costs as products move through the value chain to fulfill safe stock levels and ultimately consumer demand. As many companies step back and examine their core competencies some realize that outsourcing parts or all of a supply chain can be advantageous.

LCL logistics often provides shipment tracking capabilities where customers are able to monitor the progress of their orders and receive updates on estimated delivery times. This transparency and visibility into the shipping process instils confidence and trust in the brand, enhancing the overall customer experience. Yet, adapting to changing customer buying behaviours in today’s disruptive supply chain environment demands a degree of flexibility many businesses simply don’t have — but they can access by using online Less-than-Container Load (LCL) logistics booking. Those who integrate LCL logistics to prioritise customer experience will thrive amidst this unpredictable landscape. The company perceives itself as a capable ally for small and medium enterprises, owing to its adaptable organizational structure, and a significant number of its current clients have been part of its regular customer base for over two decades. However, it also works with a handful of Fortune 500 companies, meaning it can scale up its services to fit world-leading businesses when needed.

Many companies have a review process for incoming returns to determine whether you can resell items and to issue refunds. Some warehouses also serve as distribution centers that fulfill orders and store inventory. For instance, IKEA’s famously unique warehouse layout lets customers pick and transport their orders, reducing the need for staff and storage space. Outbound transportation involves getting finished products from factories and wholesalers to retailers or customers. Apple sources parts for its iPhones from different suppliers worldwide, stores those parts until needed, assembles the devices, distributes them to stores and retailers, and serves its ecommerce customers. Let’s dive in and explore some examples of the tasks involved in effective logistics management.

In excess of 90% of Axle’s employees are supply chain or logistics graduates from the University of Tennessee, the two estimated. That academic training brings a greater level of sophistication and willingness to think outside the boundaries of a traditional broker in order to better serve Axle’s customers, Johnson said. Axle Logistics stays involved with the University of Tennessee Haslam College of Business, where the team gives talks, visits classrooms, and sources their interns. Transportation and logistics management are inherently complex endeavors that require substantial paperwork for business-to-business (B2B) transactions, regulatory compliance and auditing.

The software was quickly adopted and replicated across the logistics industry, digitizing the process of inventory audits and stock counting. Inventory management is all about keeping track of what’s in your warehouse or store and ensuring you have enough stock to meet customer demand. For larger retailers, inventory organization is an ongoing task that requires continuous attention. Effective inventory management informs employees of stocking issues and allows them to locate and package items for customer orders quickly. AI adds greater efficiency to this and other areas of customer support by automating the process of interpreting and acting on customer communication.

Each of the three main SCM systems in Figure 1 has a particular role in managing orders and sharing data with the other two. We guarantee one point of contact for logistics management and Customer Service, so streamlining the entire process. In Italy our SUITEHOME service is radically changing the concept of home delivery by introducing a range of solutions addressing parcel delivery and White Glove services. Our multi-channel warehouse management is perfect for supporting your online sales development – and we can cater to seasonal spikes and large volume increases. Choose from our broad range of market-specific value-added services and combine with our eCommerce and eFulfilment platforms to optimize your omni-channel logistics. Logistics operations is an essential part of the supply chain and refers to the process of moving finished goods, starting from the manufacturer, and moving to the end user.

• In addition, machine learning allows Covariant’s robots to improve upon their performance and adapt to handling a wide range of objects and tasks.
• A TMS also enables users to execute the major actions of freight management, including booking of shipments with carriers.
• The TMS can also wirelessly communicate information relating to items in a driver’s vehicle so the driver can update shipment data when a delivery has been completed.
• This predictive analytics will continue to evolve into prescriptive analytics and will ultimately lead to the automation of larger parts of workflows.
• At Maersk, we offer instant LCL pricing online – simply log in to our LCL booking portal or download the Maersk App to get started.

For example, questions about delivery times and processes can be managed by AI chatbots that have access to delivery data. In many cases, chatbots can go beyond simply reducing the burden on customer support personnel to completely eliminating the need for human involvement. Symbotic designs, builds and tests AI-powered robots that provide flexible manual or fully automated solutions based on a company’s products, operational flow and customer needs. The company’s SymBots leverage machine learning and vision algorithms to organize inventory in a way that ensures all horizontal and vertical space is filled to the max.

The best part about route optimization rules is that they can divert packages around crises, weather issues, or traffic congestion. For example, suppose you’re delivering parcels using your vehicles within a certain radius of your store. In that case, the software can guide you around traffic jams or weather warnings to reduce fuel consumption and increase delivery speed.

Companies might invest more in electric delivery vehicles or in artificial intelligence to improve inventory management. “As supply chains have normalized, you just don’t need as much inventory to keep those customers happy,” he said. Logistics management is the governance of supply chain management functions that helps organizations plan, manage and implement processes to move and store goods. With the influence of social media on shopping habits, new trends can come and go in a matter of weeks.

For Zipline Logistics, working with high-quality partners is a part of its commitment to customer service. The 3PL has incorporated into its customer reporting metrics the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability (CSA) scores for the carriers Zipline selects on the shipper’s behalf. 3PD’s Dreffer notes it can be hard to ensure the recipient of a text, e-mail, or phone-based survey in a business was actually there for the delivery, and standing over a customer while they complete it tends to skew the results.

“If you need control, you are probably willing to absorb friction to do your own logistics. If you can standardize your process, using a 3PL will almost always save you money.” “You’re either buying a giant warehouse to grow into and have a lot of wasted space and paid a lot initially, or you’re going through this exercise of short-term leases and trying to find a bigger space.” Being aware of the advantages and disadvantages of value chain analysis is important when an organization is looking to optimize efficiency and reduce costs. As these trends gain traction, they create new opportunities and challenges for businesses.

AWS S3 Document Mgmt Service to store retail & corporate customers contracts & KYC Document, e-way bills & manifests documents required to delivery of 100+ millions packages a year. Customer would be able to reduce paper usage as well by using AWS S3 Digital document Repositories. Some 3PLs serving the retail industry also survey store managers to gather direct feedback on customer service matters. “Our entire company—even the information technology staff—receives bonuses based on our quality score,” says Tim Dreffer, senior vice president at 3PD. “Two companies can have all the same processes, but we stand out because of our execution.” All the metrics in the world are meaningless unless there is an infrastructure to measure them, and that’s where customer service KPIs can fail to deliver.

It comes as no surprise that AI and machine learning (ML) will be the technology most likely to be implemented by 2025. At Maersk, our suite of LCL solutions ensure that even the smallest cargo keeps moving for a big impact. Our local LCL product experts and global customer service teams ensure we’re keeping our delivery promise that your cargo reaches its final destination on time and as planned.

“Because each MSC manages customer cases differently, it will be difficult to develop standardized metrics that are fair yet challenging for all. Despite this, we were able to agree on a data-supported baseline metric that will be discussed at future leadership forums for concurrence,” he said. In today’s world, good customer experience matters, and integrated logistics has the potential to deliver.

“Companies are differentiating themselves from competitors based on how they interact with customers,” he adds. Customer service KPIs help Kane Is Able close the loop with internal staff, allowing them to see the direct impact of their services on the 3PL’s long-term relationship with the customer. “The larger the customer, the more we move from configurable to customized,” explains Ed Feitzinger, executive vice president, global operations for UTi. The 3PL began segmenting its customer base, offering a menu of about 30 services it could provide all clients and another 30 that are more customized.

This change may seem subtle, but a shift in logistics of this magnitude has far-reaching effects on the overall cost and efficiency of the supply chain network. Dynamically repositioning the point of entry for inbound container shipments can have a positive impact on customs clearance times and access to increased transportation capacity, however, there can be a negative impact as well. Better understanding the total landed cost and service implications of alternate ports of entry can help improve supply chain costs and performance.