How do you measure and improve your logistics performance and customer satisfaction?

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Customs clearance and logistics are two crucial aspects of international trade and supply chain management. They involve the compliance with various laws, regulations, and procedures that govern the movement of goods across borders and the delivery of products to customers. In this article, we will explore how you can measure and improve your logistics performance and customer satisfaction by using some key indicators and best practices.

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Sylwia P.

Customs and Logistic Co-Ordinator at Amari Ireland Ltd
Katie Rodas

Inventory, Warehousing & Logistics Guidance
Manseerat Singh

Supply Chain Professional | Vendor Management Specialist | Supply chain management

1 Customs clearance process

The customs clearance process is the set of steps that importers and exporters must complete to obtain the necessary permissions and documents to clear their goods through customs. Depending on the country, the type of goods, and the value of the shipment, the process may vary in complexity and duration. Generally, it involves preparing and submitting the required paperwork, such as invoices, packing lists, certificates of origin, and bills of lading. Additionally, importers and exporters must pay the applicable duties, taxes, and fees, which may depend on the tariff classification, the origin, and the destination of the goods. Furthermore, the customs authorities may inspect and verify the accuracy of the information, the compliance with the rules of origin, and the safety and quality of the goods. Finally, the goods must be released from customs custody and transported to the final destination.

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Sylwia P.

Customs and Logistic Co-Ordinator at Amari Ireland Ltd
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Since Brexit many Irish businesses faced multiple challenges in regard to import of goods from UK. What helped us - is taking charge of customs clearance process in-house. By lodging declarations we learned a lot in regard to rules and regulations governing products we import as well as what are the documentary requirements. Key is research research and more research. Thanks to research prior to purchase we now make better choices in regard to what to source from the 3rd countries. Landed cost of goods includes taxes due.

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2 Logistics performance indicators

Logistics performance indicators (LPIs) are metrics that help you monitor and evaluate the efficiency and effectiveness of your logistics operations. They can help you identify the strengths and weaknesses of your logistics processes, as well as the opportunities for improvement and cost reduction. Common LPIs include delivery time, delivery reliability, delivery flexibility, and delivery cost. Delivery time is the total time it takes to deliver a product from the point of origin to the point of consumption, including customs clearance time. Delivery reliability is the percentage of orders that are delivered on time, in full, and in good condition, according to the customer's expectations and specifications. Delivery flexibility is the ability to adapt to changes in demand, supply, and market conditions, and to offer different delivery options and modes to customers. Delivery cost is the total cost of delivering a product, including the transportation, warehousing, handling, packaging, and customs clearance costs.

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Katie Rodas

Inventory, Warehousing & Logistics Guidance
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Logistics performance indicators are often overlooked until they pose a problem to the supply chain. By reviewing the various touchpoints between manufacturing and the end consumer, before an issue arises, we have the opportunity to save time and/or money. LPIs often focus on transportation but should include warehousing and handling touchpoints as well. Every time a product is touched, there is a chance for things to go right.

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3 Customer satisfaction measurement

Customer satisfaction is a key factor for building customer loyalty, retention, and referrals, as well as for gaining a competitive edge in the market. To measure customer satisfaction, surveys and feedback forms can be used to ask customers to rate and comment on various aspects of your logistics service. Additionally, tracking and analyzing customer complaints and compliments, as well as calculating the net promoter score (NPS), can provide valuable insights into customer satisfaction.

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4 Best practices for improvement

To improve your logistics performance and customer satisfaction, you need to implement some best practices that can help you optimize your customs clearance and logistics processes. This includes planning and forecasting with accurate and timely data and analysis, ensuring compliance with relevant laws and regulations, establishing clear and frequent communication and coordination with customers, suppliers, partners, and customs authorities, and monitoring and evaluating your logistics performance and customer satisfaction. Technology and tools can be used to facilitate the information exchange and tracking, and the feedback and data can be used to identify and implement improvement and innovation opportunities.

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Manseerat Singh

Supply Chain Professional | Vendor Management Specialist | Supply chain management
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Measuring and improving logistics performance and customer satisfaction can be a complex process that involves various metrics and strategies. Here are some steps you can take to measure and improve these areas: 1.Define your Key Performance Indicators (KPIs) 2.Collect Data: Once you have defined your KPIs, you need to collect data to measure performance 3.Analyze Data: Once you have collected data, you need to analyze it to identify trends, patterns, and areas for improvement. 4.Take Action: Based on your analysis, take action to improve your logistics and customer satisfaction. 5.Monitor Progress: Once you have taken action, continue to monitor your KPIs to see if you are making progress.

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Katie Rodas

Inventory, Warehousing & Logistics Guidance
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Today's management systems are invaluable tools that can produce statistics, measurements and evaluations if programmed to do so, but without a system for reviewing these reports, they are useless. Ensure a system is in place for analyzing the data being presented, and that the data is clear so that stakeholders can make decisions. In my experience, product owners can get bogged down in a sea of automated reports. If everything is important, nothing is important.

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How do you measure and improve your logistics performance and customer satisfaction?

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4 Best practices for improvement

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