Last week, United Parcel Services (UPS) and TNT Express officially announced the launch of a joint proposition with a view to creating a global leader in the logistics industry. Annual revenues are estimated at more than €45 million ($60 million or £37 million) and both companies hope to accelerate their international growth strategy and enhance global customer service through combined knowledge and expertise.
With two of the largest package delivery service companies now working together, smaller delivery businesses will naturally be concerned about the global logistics provider monopolising the courier service, questioning their ability to compete. In the announcement, UPS and TNT highlighted their shared values and strong focus on customer service, operational excellence, employee engagement and good citizenship. In order for smaller businesses to contend with larger players in the market they arguably need to, at least, match their offering.
Companies might argue that with budgetary constraints this is not possible. In the delivery and logistics industry however, outstanding customer service and operational excellence is often achieved through getting the package to the correct recipient the first time, on time, every time. Smaller logistics businesses can look to offer something unique, whether it is a personalised service or competitive pricing, but if they fail to provide a reliable delivery service then customers are likely to favour these larger competitors that offer a dependable delivery method.
So how can small and medium logistics organisations ensure they consistently deliver goods to the intended recipient, without incurring huge overheads? Ensuring that customers have entered the correct address when a purchase is made significantly reduces misdeliveries. The implementation of software that can pre-populate an address from a postcode being entered can simultaneously minimise the risk of misdeliveries and enhance a user’s experience of the logistic company’s website, thus improving customer satisfaction and retention. Making small but significant investments like these to ensure efficiency and effectiveness in the purchase process will make a major difference to customer perception and, ultimately, see clients return to use the company’s product or service time and time again.