The development of market relations, accompanied by the emergence of a huge number of commercial, trading, transport, forwarding, warehouse, information and other intermediary companies, has led to a complication and change in the forms of cooperation between them and between manufacturers, intermediaries and buyers of products.
In these respects, industrial processes aimed at satisfying the various consumer demand of the population, which is not limited only by the demand for products, are becoming increasingly important.
Strengthening, on the one hand, competition and, on the other, various integration actions of business organizational structures also leads to an increase in demand for services.
In these conditions, the organization must be ready to deliver to the market not only a quality product in physical form, but also a different set of services for this product.
At the same time, the users themselves dictate what the composition and quality of the products should be, the level of service, etc.
As a result, the decisive factor in the acquisition of services is not always the price and consumer value of the product, but also the real ability of companies to provide the necessary services at a competitive level.
Concept
Logistic service is a set of intangible logistics operations that provide the greatest satisfaction of consumer demand in the process of managing material flows and the best level of costs.
The concept of high-quality transport services is based on standardized definitions of “service” and “service”.
Any company that thinks about the successful development of its own business, focuses first on the needs of customers, and then monitors consumer demand.
The basis of the demand of any product is its utility, which is determined by users and quality.
For reusable goods, service is required. The more expensive the products, the more attention should be paid to the manufacturer for maintenance. If a product that is not supported by the manufacturer in the form of a service goes on sale, then such products will not be bought in bulk and will not find their consumer.
Each of us at least once in his life bought household appliances, and the first question that was asked to the seller about the product was regarding the guarantee of the goods. If the equipment breaks down, then where can I repair it or purchase spare parts. Not having received detailed information or having heard that the guarantee for the goods is not provided, most likely the buyer will leave without buying anything.
Customer requirements force manufacturers to take care of servicing their own products.
The more complex the equipment and the wider the range of products, the more difficult it is to track the required volume of spare parts, the frequency of their production and the geography of customers.
To reduce the costs associated with the creation of spare parts, you need to track their optimal size, creating a request for spare parts that come from service departments.
To maintain the required level of service for their products, a special service is being created at the enterprises, which is engaged in both servicing and supplying spare parts.
The introduction of logistics services helps companies to classify the process, to establish a relationship between the enterprise and service departments. This service is provided either by the supplier or by a forwarding company specializing in the field of services of this kind.
The entire list of types of work that are carried out in the field of logistics services can be divided into three main groups:
- works related to pre-sale preparation of products;
- services that are provided in the process of product sales;
- service for the sale of goods.
Based on customer requests, finished products can undergo pre-sale training.
For example, if it is electric or mechanical goods, then usually the buyer asks for a mandatory inspection of these products.
To implement these functions, there is no need to create a department or increase staff. It is enough to prepare and educate sellers in the maintenance of equipment and goods.
During the sale of products, various additional services may be provided, for example:
- availability of inventory in the warehouse;
- use of the order, including selection of assortment, packaging, formation of cargo units and other operations;
- ensuring reliable delivery;
- providing information on the passage of goods.
After-sales logistics service is the following set of tools: warranty service, obligations to study customer complaints, exchanges, etc.
The creation of registers of goods sold allows you to accurately find a list of quality products, determine the marriage and make suggestions on how to fix this marriage.
The entire list of after-sales services should be carried out by special service departments with specific experience.
Level: concept and calculation
The level of logistics service is a quantitative characteristic of the correspondence of real values of quality indicators and the number of such services.
The calculation of the level is carried out according to the following formula:
Y = m / M * 100%, where: Y is the level of service. m - quantitative assessment of the real size of the logistics services provided. M - quantitative assessment of the theoretically possible level of the probable size of the service.
The level of service can also be estimated by comparing the time for the implementation of services practically provided during the delivery process, with the time that would have to be consumed if a full range of possible services were provided in the same delivery process.
To assess the level of logistics services, more important types are selected, the provision of which is associated with significant costs, and the absence of it - with significant losses in the market.
A little about quality
In the scientific literature, the characteristics of the logistics service, which determine the level of quality of the service provided, are divided into three operational groups reflecting the specifics and timing of the provision of services before, during and after the delivery of tangible products to the user.
The first group: pre-sale specifications. These are customer service factors that are determined before concluding a real service contract. Typically, this group refers to a written customer service policy (contracts), the order method, the size of the order and how to contact the service operator.
The second group of characteristics includes operational properties specifically related to the action of providing such services - this is the working cycle time, the availability of the required number of stocks in the warehouse, delivery times and other ways to implement it, the reliability of delivery and information about the status of the order.
The third group of characteristics of the quality of service combines all the after-sales properties of the implementation of the logistics service, for example, a clear organization of the procedure and accuracy of invoicing, conditions for returning the product, the procedure for studying complaints and customer conditions.
The listed characteristics are examples of properties that reflect consumer requirements for the quality of logistics services.
The principal thing in assessing the level of quality of a logistics service is the understanding that the assessment, based on the beliefs of the user, is subjective and based on a comparison of the expected and actual characteristics of the service.
Quality of Service Criteria
In order to provide the best range of services, it is necessary to adhere to the following criteria for the quality of customer service:
- Time from receipt of order to delivery. Delivery time - the interval between the release dates and the execution of the order. The manufacturer wins the market by providing a shorter delivery time.
- Reliability and custom delivery. Readiness for delivery - coordination of the delivery time of the order by the supplier with the wishes of the client.
- Supply Stability.
- Completeness and availability of the order. Delivery quality is the proportion of orders that were completed in accordance with the order (specification) of the client.
- Easy placement and order confirmation. Informational readiness - the company's readiness to provide all the data requested by the buyer about the types of products supplied to him.
- Price objectivity and regularity of information on operating expenses;
- Proposals for the possibility of providing loans.
- The effectiveness of technology for handling goods in warehouses.
- The quality of packaging and implementation of container transportation.
- Reliability and flexibility of delivery. The obligation of accuracy of delivery is an assessment of the supplier's loyalty to the agreed terms in the contract.
- Ability to choose a delivery method. The relevance ratio of some indicators may vary. In countries with developed market economies, a more significant indicator is the reliability of supplies.
Logistic Service System
When choosing a finished product, the client takes into account the manufacturer’s capabilities in the field of these services, in other words, the range and quality of its proposed services affects the competitiveness of the supplier. On the other hand, expansion entails additional costs.
A logistics service system is the process of creating a set of services by a manufacturer.
The list of such services and their significant range, the impact of services on the competitiveness and value of the company, as well as a number of other reasons emphasize the need for the company to have a clearly defined strategy in this area of customer service logistics.
System shaping
The sequence of actions to form the company's service system is carried out according to the following scheme:
- Segmentation of the consumer market.
- Identify more important services for buyers.
- Ranking services.
- Defining standards of service in the context of certain parts of the market.
- Evaluation of the services provided, establishing a relationship between the level of service and the price of the services provided.
- Determining the level of service necessary to ensure the competitiveness of the company.
- Establishing customer feedback to ensure that services satisfy customer needs.
To reduce the costs associated with the provision of services, company resources should be aimed at providing the identified service options that are most important to their customers. This is the organization of the logistics service.
How is it managed?
Quality control is one of the properties of logistics management, which is rarely used, partially applied, or completely ignored. However, quality management plays a major role in logistics.
One of the circumstances is the need to show the company's ability to provide goods, services that meet the requirements of customers, as well as regulatory requirements.
Logistics is a mechanism that ensures customer satisfaction, therefore quality management plays a major role in this science.
Inevitably, in the absence of quality management, almost all systems may not work properly, just as some operating systems may simply be missing.
Of course, the management of logistics services is used to work effectively and increase the productivity of the company.
Where the whole process works without errors, the possibility of failures is greatly reduced. Quality management of logistics services allows you to quickly find weak areas that require immediate editing.
Distributing and supporting a quality management program can be a difficult process. An outside supplier who has experience in improving quality can become a valuable partner. Quality management programs are more productive when there is a collective focus and willingness to put maximum effort into this process.
Documentation that is required from the supplier for the goods: certificate of conformity, certificate of origin, invoice, etc. In case of violation, the supplier must exchange goods and reimburse all expenses that were associated with this substitution.
System optimization directions
The task of the service of logistics companies is to find the best value for the level of service with the necessary quantitative and high-quality indicators. The unsatisfactory sales process with low values of logistics services appears in developed service markets. Imagine that a wholesale business wants to work in a developed services market with a wide range of products within 10% of what is offered by rivals.
The best value of the level of service can also be found by summing the costs of service (service) and losses in the market, which were caused by the deterioration of the level of service. The following aspects are used to assess the quality of the logistics service:
- reliability of delivery;
- expiration of the period indicated in the contract from the moment of receipt of the order for the supply of a batch of products;
- ability to take into account the special wishes of customers;
- availability of stock in the supplier’s warehouse;
- the possibility of providing loans.
Transport
The formation of a logistics service system in the process of servicing passenger traffic includes the following steps:
- Segmentation of the market for motor transport services and its division into certain groups of customers for various aspects for which certain services are typical in accordance with the features of transport services and aspects of its assessment.
- Defining a list of more important services for passengers.
- Definition of quality standards in the context of selected parts of the market.
- Rating of services included in the list;
- The choice of more important services for buyers.
- Establishing feedback with passengers to ensure that the quality of service meets their possible and approved requirements.
- Evaluation of the services provided, establishing a relationship between the level of service and the price of the services provided, determining the level of service needed to increase the competitiveness of the transport company.
When the service is working in the process of transport and logistics service, the main principle that must be implemented is the necessary element. It consists in obtaining the greatest financial effect, expressed in minimizing logistics costs.
The implementation of this principle is carried out thanks to high-quality customer service. The principles proclaim the values of consumption, because the level and content of services that are provided to users are at the forefront in the field of logistics. Reducing the time required for the rapid implementation of the transportation order becomes the most important task of quality passenger service.
Problems
The difficulties of forming a logistics service include: characteristics for evaluating transport services, quality of service and determining a rational level of service.
The relevance of improving transport services is justified by the possibility of increasing competitive advantages by providing the user with good services, based on the composition and cost of services, which is determined by the specificity of logistics services.
Optimization is based on a balance of the manufacturer’s interests in lowering costs, increasing sales of products and, consequently, increasing the company's income and profitability.
Conclusion
Logistic service is a set of operations that ensure maximum satisfaction of consumer demand.
As a result, an increase in the competitiveness of the company, which was caused by an increase in the level of service, is accompanied, on the one hand, by a decrease in costs in the market, and on the other, by an increase in the price of services. The task of the logistics service is to find the best level of service.
Studying the difficulties of logistics services, you need to consider the following problems of service formation:
- timely increase the reliability of service and willingness to place orders and customer requests;
- reduce the total costs associated with the content of stocks;
- lower the price of goods and services.