Logistics play a major role in our life. Most of the people might not be aware of the importance of logistics until there are problems appear. Under the pressure of arising competitive environment, most of the business entities are initiated to focus on the development of logistics. Logistics can be said as the transfers of goods and services from the point of origin to the point of consumptions effectively and efficiently in order to meet the requirement of the customers (Logistics World, n.d.). Logistics include the distributions of raw materials, in-progress inventories, finished goods and other related information. Successful logistics enable the business entities to deliver the goods and services consistently to the correct customers on time. Based on the question given, I do not agree with the statements saying that ‘logistics is nothing more than getting goods from one point to another’. Logistics covered much more aspects and involved a lot other activities other than what the statement above mentioned. There are still many different types of activities in logistics such as customer services, inventory management, material handling and packaging, order processing, procurement and et cetera. On the other hand, in order to improve the effectiveness and efficiency of logistics management, a variety of solutions and technology advancements had been introduced to the business market. The literature below will review the other activities and the technologies improvement for logistics (Stock & Lambert, 2000).
Key logistics activities
One of the activities involved in logistics is the customer service. Stock & Lambert (2000) stated customer service is “a customer oriented philosophy that integrates and manages all elements of the customer interface within a predetermined optimum cost-service mix” (p. 24). To design a logistics system, companies should always start with setting a strong and clear customer service objective. Without having a common objective for everyone in the company, decisions about order strategies, production, transportation, inventory investment, and warehousing will not be consistent and effective. Customer service objective acts as guidelines for the logistics managers in setting up targets of their performance as well as making decisions when they encounter problems in the future. Logistics play an important role in ensuring high customer satisfaction. Getting the right product to the customers under the right condition, at the right place and the right time, as well as with the right cost are the main criteria for achieving a high customer satisfaction (Stock & Lambert, 2000). For example, Kraft Foods Incorporate make sure their customers get the right products they ordered at the right time and right place regardless of whether the customers are at the hypermarket in France or a café in Sweden (Kraft Foods, n.d.). Other that the five rights, excellent customer services also need to make sure the order and return processes are convenient to customers. The company needs to provide accurate and consistent information to customer by selling the products and services that are worth for the price. Lastly, they need to deliver the products and services on time. By providing the best customer service and fulfilling all the five ‘right’ criteria, company will be able create higher customer satisfaction and therefore gaining competitive advantage. When customers are satisfied with the products and services provided by company, they will most likely become the loyal customers and support the products and services from the company in long term scenario (Stock & Lambert, 2000). Besides that, Banning & Gibson indicate loyal customers can act as one of the advertising medium by conveying positive messages and comments to their friends and family (Banning & Gibson, n.d.). In that way, the market share and profitability of the company will increase and at the same time the...
Please join StudyMode to read the full document