Customer-Centric Supply Chain is The Future, Here’s Why

Tracking and logistics are often a topic in the business world. However, have you wondered how human factors can also be in play?

The concept of customer-centricity is gaining significant traction in today’s logistics landscape. Recent disruptions have heightened uncertainty, making it more crucial for companies to evaluate risk and adopt strategies that enhance customer satisfaction while controlling rising costs.

We will explore the “human elements” of logistics and tracking. Drawing insights from the article by AllForward, we examine the rationale that logistics is not simply a business challenge but also one that involves both rational and emotional factors. Understanding the psychology behind logistics is crucial for creating effective and adaptive operations.

In this article, a few thematic discussions will be brought up. We will also discuss the necessary strategies to build a customer-centric supply chain and how TrackingMore can cater to most, if not all, of the operational goals and human needs in tracking and logistics.

Why Customer-Centric Supply Chains?

In logistics, just like any industry, the focus ultimately revolves around people. During the shipment of goods, the decision-making is influenced by both rational and emotional factors.

For example, the communication and expectation surrounding the shipment of goods is one of the most discussed areas.

On the other hand, the fast-paced and high-stress environment of the logistics world is known well but less discussed. During the shipment process, freight forwarders and logistics teams face tight deadlines and operational challenges. Furthermore, delivery issues such as delays, exceptions, or returns are common, especially during peak sales.

In a nutshell: Customer-centric logistics is a response to evolving customer expectations. It requires balancing effective logistics operations with a focus on keeping customers satisfied and engaged throughout the process. For this article, we introduce four key behavioral factors that may be relevant to your logistics operations.

Transparency and Trust

When a customer places an order, they embark on an emotional journey filled with anticipation, trust and even anxiety at times of delivery issues. Such emotional signals are equally important to handle as the actual shipment of goods.

It makes timely, proactive communication more important than ever. When they can access real-time updates on their orders, they should feel more in control and less anxious overall. It also reduces uncertainty and enhances customer’s trust by demonstrating that their concerns are valued and addressed.

Practically, reducing WISMO calls, and customer service costs is what we want to achieve in a business sense. However, what is entailed is the goal to instill confidence and reassurance in customers, ensuring that they feel supported throughout the delivery process.

User Experience

In the realm of psychology, cognitive load is an important concept. It means that as a person or customer is going through the information, a certain level of mental effort (load) is used to process that information. A greater cognitive load can make it challenging for users to comprehend the situation, leading to reduced engagement and action.

Applying to the world of logistics, the cognitive load will depend on how the tracking information is presented, or the lack thereof, during the delivery process.

Consider a logistics platform with tracking pages of multiple data points, such as delivery time, shipment history, and delivery shipping routes. When customers are presented with excessive details or inconsistent terms, they may feel overwhelmed or confused about the status of their orders. In contrast, a simplified tracking interface allows customers to quickly understand order statuses, reducing the overall cognitive load of their orders.

Visual cues also play an important role. Using elements like maps, icons, and progress bars, companies can enhance the user experience and drive quick comprehension.

At TrackingMore, we operate with this principle in mind. Our suite of solutions serves to provide you with a simple, user-friendly dashboard that allows you to input and analyze tracking data with ease. Moreover, it is integrated with marketplace platforms, such as Shopify and Amazon, reducing the hassle brands need to take.

Customer Engagement

An appropriate use of shipment updates can both instill peace of mind and excitement in their customers as they anticipate their deliveries to come by. Potential logistics actions such as personalization and change communication can show empathy in communication, which can foster customer loyalty and repeat purchases.

Customer loyalty, a strategic goal that eCommerce players want to achieve, is directly related to the positive emotional experiences that the brand entails.

Personalizing communications, such as addressing customers by preferred name, suggesting relevant products, or making tailored shipment updates, can be another way that enhances the connection between eCommerce businesses and their customers. This tailored approach shows that the brand recognizes individual customer needs, which can deepen emotional connections and foster loyalty.

Consistency

Have you ever ordered something online and found yourself anxiously waiting for updates? This is where consistency in logistics comes into play.

In simple terms, consistency is about keeping promises. When a delivery goes smoothly, it builds trust for the brand, but one delivery mistake can leave a lasting negative impression, covering all the good experiences beforehand. This is called loss aversion. People tend to remember the negative experiences more than the positive ones. Accuracy and reliability are at the forefront of mitigating potential losses, which highlights the role of tracking solutions.

Another important process is reciprocity. It suggests that as customers receive something of value, they feel compelled to return the favor. Proactive communication, and real-time tracking, act like a friendly nudge that makes them feel involved in the process, making them more likely to respond positively to completed deliveries.

From Endpoint to Integral: The Shift to a Customer-Centric Supply Chain

To achieve a customer-centric supply chain, a mindset shift is critical. It means that you should rethink your logistics journey as a series of interconnected efforts rather than viewing it as a final endpoint after purchase.

Here are the two key ideas to bear in mind:

• Every decision you make affects your customer’s experience. It’s important to grasp how each choice contributes to their overall service level.

• Connect the dots together. To achieve customer-centricity, you should stay aware of how the different parts of the supply chain depend on each other, so that you can ensure and plan out a smooth and responsive operation.

In practice, we should have a strong focus, or even an obsession, to customer needs and being responsive and agile. This means being aware of potential problems, like delays in delivery or issues with our production capacity. By anticipating these challenges, we can also find ways to improve our service, such as by offering faster delivery options or adjusting production levels to meet demand.

Effective planning on demand, capacity, and inventory is key to tracking customer orders and expectations, especially during peak seasons when order spikes occur. It also helps reduce the stress and operational challenges that come with unexpected events.

Remember, a single loss event can erode customer trust, while consistent, reliable service can help retain customers. In this case, clear and transparent communication at every touchpoint is vital in maintaining this trust.

Technology plays an increasingly important role in the process. An order tracking process may seem daunting at first, but it significantly enhances logistics operations and enables proactive issue resolution, making the overall process smoother for everyone involved.

TrackingMore Is Designed for Your Tracking Needs

TrackingMore is designed with customer-centricity in mind. We are aware that order shipment can be an emotionally taxing process for your customers, and we strive to make the experience exceptional for you and your customers.

The need for transparency, accuracy, and precision has furthered our design of an API-oriented tracking environment, connecting to 1,300 carriers and 80 carriers worldwide. TrackingMore has a user-friendly interface, designed to help you achieve real-time tracking easily and at your fingertips.

Online Retail & eCommerce

For eCommerce owners and dropshippers, we recognize your needs. We handle the back-end logistics, allowing you to refocus on your sales and marketing efforts. With our intuitive tracking system and real-time tracking updates, you can manage shipments from multiple suppliers while ensuring customers are satisfied.

Consistency is key, and we deliver that through our 24/7 customer support that matches the hectic schedule of eCommerce. Our branded tracking pages and shipment notifications should also provide the customization you need to enhance your service.

Logistics and Fulfillment

Logistics and fulfillment companies are also our key serving segment. With real-time, reliable tracking, fulfillment companies such as FlowSpace, Mochila, SKU2U Fulfillment, and Rush Order are entrusting us with enhancing their shipment capabilities.

Our shipment reports allow them to identify actionable insights within their supply chain, thereby enhancing operational efficiency in the long run.

Marketplace Sellers

Our tracking solution is currently covered in Shopify and Amazon, granting you peace of mind as you perform your integration process.

Embrace The Human Side of Logistics

Logistics should not be as hard as you may think. Ultimately, it is about granting peace of mind and comfort that their orders are readily packed and delivered.

However, as the supply chains become increasingly globalized and complicated, a centralized and efficient tracking system will help you alleviate most of the hassle and allow you to bring the best order delivery experience. That’s where TrackingMore comes in - by prioritizing the needs of your customers and streamlining logistics operations, we help you create a positive experience that fosters trust and satisfaction.

If you are interested, do not hesitate to reach out to us. We are happy to help you navigate your tracking and logistics needs, tailored specifically to your business case.