Tutorial 5

Question 3

How does an effective logistics strategy add value to a business?

First and foremost, an effective logistics strategy can help a business to achieve faster processing
and delivery. This leads to more satisfied customers and lower inventory carrying cost. Response
time is an increasingly important strategic weapon in the arena of competition. Leading
companies seek to respond to orders in minimum time as delay costs directly affect prices,
operating policies, sales, and the firm’s profits in a competitive environment. These time-based
strategies can be dealt with through the use of technological innovations. In an era of free
shipping, one-hour delivery, and drone drops, customers have high expectations about efficient
product delivery.

Besides, the value of a transport logistics solution in enhancing customer satisfaction and service
cannot be overstated. A company’s ability to provide the right product at the right time in the
right place is paramount in driving a positive customer relations platform and increasing a
company’s client base and footprint. Because a transport logistics solution provides planners and
managers the power to ensure the right products arrive in the right condition at the right moment,
customers will not only be more appropriate to work with a given manufacturing company in the
future, but said manufacturing company will also create more stable and productive business
relationships with partners in their supply networks.