Question

Logistics companies are always in a competition due to the diverse nature of Logistics services. This competition compels the companies to provide best quality services. Discuss at least 5 elements on which Logistics Service Quality can be measured. Your explanation should contain details and proper examples to justify your answer.

the 5 elements is: speed, accuracy, efficiency, cost, benefit

Answer 1

Many of us enjoy the final finished product as customers without even thinking about what efforts must have been put in order to make that product. Any manufacturing requires raw materials, and all finished goods need to reach the market or consumer. The logistic industry is at the helm of these 2 processes – bringing raw materials to factories and taking finished products to markets. The amount of benefit or competitive advantage that an organization can get in the market will depend on how it is managing its logistics. It is no surprise that many logistic companies are present in today’s market specializing only in this aspect – enabling the reaching of raw materials to factories and reaching of finished products to markets. In such a competitive environment the quality of the service delivered by the logistic companies can be measured using the following key elements:

1. Speed: the speed with which any company is able to transport its raw materials to factories or finished products to markets decides on how much benefits it can reap from its early introduction or first mover advantage. Loss of time is loss of money in manufacturing and sale, hence speed is a key element using which the quality of the service of a logistic company is measured. Organizations or clients will prefer logistic companies that can save them time by reducing the time to market or time to factory of raw materials or finished products.

2. Accuracy: When one is trying to do something in hurry, there are chances that mistakes can be made. Same is applicable to logistic industry as well. Logistic companies while maintaining their competitive speed for delivery cannot afford to compromise on the accuracy of the delivery. The right product or material needs to reach the right location at the right time.

3. Efficiency: efficiency is basically defined as maximum output with minimum effort. This ratio is being optimized regularly by the logistics industry by deploying software that can track and maintain the logistics, inventory etc. there is a lot of thrust on technology and innovation for it saves cost and improves the efficiency and accuracy.

4. Cost: since the logistic industry is replete with competition the aforementioned 3 factors speed, accuracy and efficiency, need to be maintained to ensure the cost is optimum and benefits are passed on to the client and hence the end consumer. Only when this cycle of saving cost and passing it down the value chain is maintained then, the logistic company will be able to thrive in the competition.

5. Benefit: the benefit that the logistic industry is giving along with the normal task of delivering goods plays a pivotal role in the service quality index. Associations between organizations, even humans is driven by benefits. Therefore, it becomes immensely important for logistic companies to call out the benefits that they are giving to the clients for associating with them.