By Lisa Henthorn, V.P., Marketing Communications

For companies looking to reduce logistics costs, automating and optimizing manual processes is key. With an automated, cost-effective transportation management system, a company can implement major strategic changes to increase visibility and improve customer service, all while providing scale and controlling costs that can further improve customer service.

Keeping the per order cost of logistics support low requires keeping customers happy and coming back for additional goods and services. Increased visibility into delivery leads to improved customer satisfaction, resulting in higher retention, spreading out the cost of logistics support over a greater number of orders/customers. This direct correlation between customer satisfaction and overall cost reduction demonstrates why customer service should be factored into any measurement of changes in logistics costs accordingly; each happy, returning customer produces an incremental decrease in the per order cost of logistics.

Cloud-based transportation management systems (TMS) create consistency for customers, leading to operational efficiency. In addition to keeping support costs low, improved real-time visibility into shipment deliveries and delays enables shippers to better manage customer expectations by giving them an inside look at the entire process. The ability for shippers to react immediately to unforeseen events in real time, rather than risking customer dissatisfaction after the fact, has major implications for both customer service and ROI.

With an agile cloud-based TMS in place, companies can better manage complexity and provide visibility into the shipping process. This sets the stage to continuously create operational efficiencies, keep customers happy and improve the bottom line.

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