How Standardized Processes and Integration can help a LSP ensure Customer Loyalty


Expanding world trade is increasing the global logistics industry’s growth potential. In fact, the global logistics market is enjoying unprecedented growth rates however, the increasing importance of the logistics industry is also giving rise to more responsibilities and challenges. Retaining existing customers is particularly challenging in the freight and logistics sector where ‘cost’ is often the sole deciding factor when selecting a LSP.

For a service driven industry like freight forwarding & logistics, the need to ensure customer loyalty through operational excellence is crucial. By constantly upgrading logistics management technology LSPs can improve communication with customers and play a truly integral role in their growth. Not only will this increase the overall service satisfaction but logistics management software can also go a long way in retaining customers. After all, we all know, it costs more to acquire a new customer than to retain an existing customer.

Logistics management software empowers LSPs to create unique capabilities. These unique capabilities are 'standardized processes' and 'integration with third party software'. Robust resources and processes can create value for customers, so much so, that they will willingly pay a premuim for the value they receive from add-on services which a LSP provides as part of his service package.

Standardized services enable the LSP to seamlessly deliver crtical data and information related to a particular shipment from the initial ‘query’ stage to final ‘delivery and ‘payment’. LSPs should have on board a sophisticated freight management solution equipped with various modules for different processes that are a part of his operations. For instance, by automating customs clearance processes LSPs can reduce delays and errors and thus help customers cut transportation costs.

Similarly, integration facilitates third party collaboration with partners/carriers, this allows an LSP to match shipment queries with carrier routing options and offer available options to customers quickly. Industry leading freight management software offer high levels of integration that fully supports the LSP’s business and at the same time connects with customers and partners.

LSPs should constantly ask their software company to suggest newer features for customers this way they can keep customers engaged and transform their relationship from a ‘logistics service provider’ to a ‘logistics service partner.’ Freight management software and the limitless possibilities it offers to enhance services is a key differentiator. Armed with these unique service capabilities, the LSP knows that his customers are not going to be scouting for a new service provider any time soon.

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