Customer retention: key for improving user experience in logistics

The rise of e-commerce and post-pandemic customers' search for omnichannel experiences are driving logistics to become crucial for retailers and manufacturing industries. Logistics is described as "a critical competitive advantage" by Nabil Malouli, DHL's global e-commerce senior vice president.

E-commerce has significantly increased last-mile delivery services, a key component for customer satisfaction in logistics activities. 

In modern logistics, customers go first. 

Retailers need infrastructure to deliver every order to the end consumer, making the operation costly and complex. According to Praveen Adhi, Senior Partner at McKinsey & Company, achieving accuracy and visibility of inventory in distribution centers and stores, as well as having logistics partners and sophisticated analysis to determine the best way to route the order, is a challenge at best.

Shekar Natarajan, president of Quiet Platforms, an American Eagle subsidiary, believes that having logistics control is an illusion because one needs to own most parts of the supply chain. However, retailers can focus on three critical factors for any supply chain model: models to scale, returning process, and flexible delivery options. 

Sustainability is also crucial for customers looking for a guilt-free shopping experience. 

Retailers must develop better packaging systems to reduce the use of cardboard, optimize delivery routes to use less fuel, improve fleets by electrifying vehicles, establish customer pick-up and drop-off points, and work on collaborative models to improve logistics efficiency.

Collaboration and flexibility are the primary keys to customer satisfaction. 

Retailers must work with flexible delivery options to reduce costs and emissions, optimize routes, and save drivers from making multiple trips. They can offer opportunities to slow the delivery speed or pick products up from alternative locations, saving the retailer money. It may increase truckloads, reduce the number of deliveries, or shorten routes by using more parcels delivered at one destination. Offering customers the options they seek is critical to retaining them as clients.

In conclusion, logistics has become a critical aspect of the business due to the rise of e-commerce. Retailers and factories must look for ways to improve their operations while they manage opportunities to guarantee customer satisfaction. 

Frontier Industrial supports strategic areas and activities for the Mexican economy. That is why our industrial parks in Mexico have strategic locations and services designed for investments from all companies interested in nearshoring to the country and utilizing supply chains to connect with the world.