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The New Era of Logistics and Technology

This post-pandemic work demands new solutions to situations that now are as clear as ever. One of them is the logistics of the post-purchase and the whole logistics process.

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Online shopping has been a reality for well over two decades. However, the pandemic created an unprecedented situation that businesses and consumers alike weren't prepared for.

Although some countries have the situation with more coverage than others, the reality after this global pandemic is that for businesses to stay competitive, there’s a need to stay afloat and center the customer as the main resource.

The need for technology grew exponentially and companies worldwide began to understand the benefit of using technology to solve the problems they were facing.

In this article, we will take a look at how the pandemic shifted how logistics and mailing companies carry out their business operations with the use of technology.

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Global Shift in Logistic Operations

Travel halted, and that had a direct impact on the world’s logistics operations. Retailers who did not have a strong presence in eCommerce or had little infrastructure to handle such high demand looked to technology for solutions.

These systems help speed up delivery times and drive a better customer experience and brand loyalty. "On the other hand," the Expectation Gap Surve notes,"...those who have invested in back-office systems or DMP platforms are in a better position to offer more alternatives."

These automation systems are called Delivery Management Platforms (DMP) or Order Management Systems (OMS). They aid in faster response times, more efficient operations, and greater customer satisfaction. As a result, these systems became the focus of many in the logistic industry during one of the most changeling moments in modern history.

Companies began exploring ways to deal with the influx of demand. In addition, other businesses began to move toward expanding their online offerings, such as contactless delivery and payment. Expanding their offerings allowed companies to serve the customer no matter where they are, with the click of a button.

Tracking Inventory

Technological advances along with the rapid growth in global communication give businesses the ability to pivot and adapt. Using a DMP allows companies to handle back-end operations such as inventory better.

During the pandemic, we saw inventories dwindle with no idea when products would become available. This caused the public to "panic-buy" products in large quantities. Suddenly, there wasn't enough inventory, and what was available wasn't being delivered; due to the overwhelming spike in demand and an underwhelming amount of production.

According to Tech Radar, "The backbone of all on-demand delivery operations is technology. COVID-19 was the ultimate test to see how systems and partners would handle a rapid increase in customer demand." In addition, companies wanted to find ways to improve how they handle inventory and processes through the point of sale. Knowing the amount of stock on hand and the timeframe to fill backorders can go a long way in making operations less chaotic.

Lack of inventory is one of the reasons many consumers change brands. A DMP can also be used as a means of communication to keep customers informed. Creating alerts and adding more complex tracking systems can provide a sense of comfort and credibility for customers. With the right technology, companies can utilize it to their advantage by making certain operations automated or by creating a better, more effective way to communicate with the customer.

Tracking Delivery

Mail services have been backed up worldwide in every form, from air, boat, to car, along with the shortages of workers within the logistics industry. It created an environment where the customers were left to guess when the item they purchased would arrive. Delivery was slow, and communication was even slower due to the high demand. Suddenly, deliveries that took a week turned into several weeks and, in some cases, months.

"As we have seen, over half of the consumers said they would go as far as to stop doing business with a brand if wrong items were delivered or items missed. Almost half said the same for longer delivery times,…".

The delivery process had to be adjusted. Small and large businesses alike had to change how they performed deliveries and interacted with the customer. The method of delivery, from payment to arrival, can vary from company to company. DMP systems allow processes to be more streamlined, effective, and timely.

The speed of delivery plays a large part in customer satisfaction and brand loyalty. Tracking everything from the moment an order is made, process time, delivery destination, and the places in between can make a difference in customer loyalty and retention.

Customer Retention and Satisfaction

Expectation differs for not only products and services but also between retailers and consumers. The Expectation Gap Survey was conducted during the pandemic and took a deeper look into logistics and the eCommerce industry. The rapid change in how logistics and technology are marrying together to bring about innovation and efficiency is heavily seen in this study, with no sign of slowing down.

Due to the lack of movement worldwide, it became more important than ever to find solutions to retain customers and boost customer satisfaction. "According to the survey, retailers using either a back-office system or a DMP solution are also better at retaining customers." This is important to note, as customer satisfaction is the main component in customer retention.

Many other factors drive customer satisfaction. "Some of the top reasons why consumers said they would stop doing business with a brand include poor product quality (71%), high delivery costs (62%), poor customer support (58%), and missing or wrong items delivered (54%)." according to the survey. When everything is uncertain, providing the customer with a sense of certainty, understanding and value becomes essential to the success of any business.

Creating a Solution

Here at Dixtra, we strive to solve these kinds of issues with technology. We worked with postal and logistics companies to help ease the processing of deliveries, track their packages, and allow clients to make deliveries with little to no hassle.

Contact us, and let’s talk about how now more than ever, it’s important to understand the needs of the customer. The market is now consumer-driven, and it's increasingly more important for businesses need to pivot operations with the use of technology.