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What are the current strategies/procedures being used in the transportation industry to cater to customer needs/satisfaction and develop the business?

E.g - Some Hotels have tied up with Limousines Services so as to give their High Network Customer the option of driving in Luxury and Style with no additional Cost. Do you know of any such strategies employed by the Transportation Industry (Road, Air, Sea)?

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Question ajoutée par Amal Mandhora , 'Temporary Assignment' , Hamad Medical Corporation
Date de publication: 2013/08/24
PRAVEEN VARMA
par PRAVEEN VARMA , Senior Manager , Reliance Industries Limited

The current strategies / procedures are common and most of the people follow it.
If one implement it first then second copy.
When it comes to customers needs / satisfaction and developing business then one has to have a unique feature in their offering.
This unique feature can be copied by other but it depends the quantum of investment required for new feature.
If your new feature is capital intensive then the copy of the same will be difficult rather it can give you additional earning throuhg hiring.
Now let us take a example.
Today customers need is to have a unique experience and for which they are ready to spend the money.
Suppose you have fleet of caravans and series of open land hotels in gulf region to Europe with tent house accomodation, camp firing, adventure sports etc etc.
So this will be a unique feature which will satisfy the need of customers with unique experience.
Suppose some body wants to have a trip to Europe through gulf countries then each family should be picked up in regular car to open land hotel.
Where they will stay in tent accomodation and enjoy the facility.
For local travel they should have a car with them.
Once they move from one place to another like Dubai to Doha then they should be moved into a caravan.
In Doha again they should be put up into open land hotel and should have a car for local visits.
This way I think we can create good value for the customers.
Please note that it is just an idea.
The crux of the story is that try out new things, which satisfy the customers.

Amrut Desai
par Amrut Desai , former Managing Director & Country Manager India & SriLanka , Hohenstein India Pvt Ltd-fully owned by Hohenstein Institute GmbH Germany

      A successfully implemented logistics strategy is important for companies who are dedicated to keeping service levels at the highest levels possible despite changes that occur in the supply chain.
  Organizations with a multitude of divisions face difficulty in creating a single strategy.
Therefore, a strategy is best developed for specific divisions with the overall goal in mind.
Specific divisional growth and strategy tactics that work for one group can be applied to others keeping in mind that not all things are equal.
  Logistics strategies vary from company to company depending on their business model and  its customer base.
A good logistics strategy  must  at least  incorporate the following elements   Transportation: Does the current transportation strategies help service levels? Outsourcing: What outsourcing is used in the logistics function? Would a partnership with a third party logistics company improve service levels? Logistics Systems: Do the current logistics systems provide the level of data that is required to successfully implement a logistics strategy or are new systems required? Competitors: Review what the competitors offer.
Can changes to the company’s customer service improve service levels? Information: Is the information that drives the logistics organization real-time and accurate? If the data is inaccurate then the decisions that are made will be in error.
Strategy Review: Are the objectives of the logistics organization in line with company objectives and strategies.
  The following are some of the broad strategies for consideration   1. 
   Personnel at all levels in the logistics activities play a crucial role   When it comes to  ensuring higher levels of customer service, it is the manpower that gets precedence over other requisites  .
As such ETA- Employment & Training administration division of US Department of Labor lays emphasis on  creating  inexhaustible and duly trained pool of transportation workers   The transportation industry is currently seeking to develop a pipeline of younger workers to help industry employers meet their workforce needs.
Specifically, employers are looking to help high school, technical school and community college graduates successfully enter the transportation industry.
In addition, industry employers are recruiting future workers through untapped labor pools, which include dislocated workers, transitioning military personnel, veterans and individuals with disabilities.
  To address entry-level retention among workers in transportation, the industry seeks to develop competency models and career ladders for future workers to demonstrate the viability of jobs in the industry.
The industry is also focused on management retention among experienced workers.
Expanding access to training programs for incumbent workers is also a concern.
To help workers gain the skills industry employers demand, the industry is developing effective partnerships between workforce investment boards and One-Stop Career Centers and developing training models and skill certifications to help close the skills gap.
  2. 
   Deployment of Logistics information systems   ·         Enlightened firms are beginning to realize that logistics excellence is a significant differential advantage that can be exploited in the marketplace.
Logistics service is an effective tool for building closer relationships with key customers.
Although the expression "being easy to do business with" is over used, the fact remains that some firms are very difficult to buy products from and have poor response systems for providing information concerning such facts as order status and invoice discrepancy.
Other firms have state-of-the-art logistics information systems that enable maximum control  - a source of advantage which can be translated through integration with marketing into a positional advantage.
The result is the performance outcome of significant customer impact.
The final outcome of these superior logistics systems is an added positional advantage of preferred status for selected suppliers - and such status draws directly from the logistics competency (even in situations where price, product, and promotion are undifferentiated or marginally higher in comparison to selected competitors).
      3. 
   Logistics leverage   ·         Logistics leverage is the ability to effectively influence market demand through the application of excellent logistics systems, techniques, and programs.
It is not enough to have created the human resources, technical tools, and operational systems for effective logistics, the firm must be able to market and use its logistics expertise to achieve marketing goals.
  4. 
   Creation of value added services : change of mind set   ·         Companies with value added logistics services do not view themselves as traditional wholesalers, retailers, warehousers, or transportation companies.
Their mission vision is one of being a service organization which satisfies a specific niche requirement.
They provide logistics economies of scale, essential services, and time and quality based delivery.
The combination of more effective delivery at a lower cost translates to increased value.
Thus, what have traditionally been logistics cost drivers are becoming drivers of differentiation   5. 
   Top Management  involvement   ·         Top management must fully understand the real and significant market impact that results from logistics superiority.
Recent history has demonstrated that many of the successes achieved by large consumer goods firms with mass merchandisers resulted from the manufacturer's ability to lower logistics costs while increasing logistics service, resulting in increased final consumer satisfaction combined with reduced retailer inventory.
These drivers of differentiation can only be accomplished through management's vision of the potential of logistics and a commitment to leveraging their logistics system for their customers.
  ·         Management vision will achieve logistics leverage only if   a.
top management applies resources to bring logistics expertise to their customers on a customer-by-customer basis   b.
the attitude of marketing customer satisfaction as a corporate core competency is nurtured by top management throughout the entire organization, not just in marketing, and   c.
the logistics benefits of the manufacturer are communicated directly from the supplier CEO to the customer CEO.
This latter point is an essential ingredient in the establishment of strategic alliances and partnerships.
  6. 
        Strategic alliances & partnerships – a must   ·         To achieve higher customer service levels towards development of business,  strategic alliances and partnerships must be forged.
The marketing value of exploiting logistics competency is demonstrated by the positional advantage available as a result of linking firms and their customers into strategic alliances and partnerships.
The strategic alliances that evolve thus are broader in scope than simple out-sourcing because they include risk and reward sharing.
  ·         A significant aspect of these newly created alliances is the central role typically played by logistics.
Inventory management, direct-store delivery, warehousing, and transportation consolidation are typical logistics functions that are at the core of many partnerships.
The efficient performance of these activities by specialists produces benefits shared by both partners.
Experts in the field  state that , the emphasis in such relationships is on "the notion of 'total cost of ownership' and the array of value-added services provided."   7. 
     Creation of Strategic Inter-functional Teams   ·         Logistics superiority as a driver of differentiation can be achieved only when all parties in the marketing organization are integrated in terms of the basic concept of customer satisfaction, the potential of logistics leverage to aid in obtaining customer satisfaction, how the message of logistics customer value needs to be communicated, and to whom this message should be delivered.
  ·         To achieve logistics leverage, marketing must recognize the role logistics plays in achieving customer satisfaction.
Without this recognition, the related promotional, pricing, and "service package" strategies to market logistics expertise to the customer will not be achieved.
It falls to logistics to develop and deliver the logistics excellence that marketing has identified as important to customers.
  8.Organizational Issues   ·         One way to leverage logistics excellence is to establish hierarchies and reporting relationships that maximize the integrated potential.
When marketing, sales, and logistics each report to a separate vice president, each with their own organization, more effort will be required to break down the inherent organizational barriers so that integration is achieved.
  ·         However, since logistics is a customer satisfaction impacting function and its significance as a competitive marketing tool has been demonstrated, logistics should logically be more closely aligned organizationally with marketing.
Rather than a team approach, if logistics reports directly to marketing, the potential for maximum market impact of logistics leverage is increased.
  9.Market Intelligence   ·         To achieve logistics leverage, information systems need to be restructured so that new and different types of information are routinely gathered and supplied to the marketing/logistics function.
Information on customer logistics problems and opportunities are required so the firm can quickly adapt their logistics expertise to meet these challenges.
Market research needs to expand from the traditional study of needs, attitudes, and behavior related to product, price, and promotional offerings to include the study of customer logistics needs that customers may not even be aware exist.
In addition, environmental assessment studies to benchmark the efforts of those firms deemed to be leaders in logistics excellence will supply strategic informtion relative to the firm's extant logistics offering.
  10.Channel Member s- a careful selection for effective implementation   ·         To effectively exploit logistics competence, it is required to upgrade the logistics systems of other channel members.
All channel members must share the vision of the potential market impact of logistics excellence.
Logistics leverage can only be achieved in market segments served by channel members when those members possess the level of logistics excellence required by those customers.
This excellence can be developed by careful selection of channel members by market segment, by transferring logistics excellence through strategic alliances, or out-sourcing certain traditional channel functions to third party providers.
  11.Sole-Source Relationships   ·         Finally, the recent past witnessed increasing efforts by firms to reduce their supplier base and move into sole-source relationships with key suppliers.
This trend underscores the need to refocus strategic thinking on the role logistics can play in establishing sole-source relationships.
Because of the impact of a vendor's logistics competence on the buyer's costs and operations (just-in-time delivery to production sites, damage-free products, error-free orders, and real-time information are all cost drivers that are potentially also drivers of differentiation for the firm), the vendor's logistics system may be the most effective way to create and support a sole-source relationship.
  Conclusion   The above are the broad strategies for achieving higher customer service levels as valued by customers and towards developing the business of any logistics focused company.
As mentioned earlier the strategies may differ from company to company depending on the nature of products handled, service coverage area and terrain, HR and management policies and involvement of top management or the lack of it.
  Note: This is not my original work and is a compilation only of relevant content This is not my specialty and I am not an expert.
I have taken time and interest to study this all important phenomenon and as such bear with me for any omissions and errors.
  Thank you for raising this pertinent question.
Good luck t o you                   

amandeep Bajwa
par amandeep Bajwa , Assistant Construction Manager , larsen & toubro limited

In our day to day life we come across so many live eamples, in travel industry Pick/Drop facility from the the airport to hotel n vice versa, along with welcome drinks on arrival at a hotel.
Road (these days we see meals are served in the buses which was earlier limited to air and rail travel only), people are given the opportunity to choose their own seats, the type of meal the would like to savour etc.
To know whether there was some like/dislike experience during the journey, people are made to fill in the forms and giv suggestions.
thses days some airlines are about to come up with an idea to upgrade the seat to no-child zone, i.e where there is less cry and more comfort this are a few to name, the list goes on...
good luck to you Amal  

Mohammad Tohamy Hussein Hussein
par Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

The strategy of our local transportation authorities is to provide public transportations suitable for car owners to attract them to use public transportations and stop using their personal cars for everyday business.

Virendra Singh
par Virendra Singh , India Representative/ Consultant , MM ONE GROUP SRL (Italy) BOOKING ONE

The upgradation of technology is main important factor in customer satisfaction. Transportation industry is playing a pivotal role in exporting & importing goods. The main strategy is to enhance technology like installing GPS and GPRS in Vehicle to track them. Mapping & Tracking is the latest trends. Safety Comes very important & all the major transport company making their product more safer by implementing new safety technologies. 

Another major strategy is cost effective. The product should be cost effective as competition is very high .

BashirAhamd BASHIR
par BashirAhamd BASHIR , teacher , EDUCATION

yes,

in this globe,

Inventory management, direct-store delivery, warehousing, and transportation consolidation are typical logistics functions that are at the core of many partnerships. The efficient performance of these activities by specialists produces benefits shared by both partners. Experts in the field  state that , the emphasis in such relationships is on "the notion of 'total cost of ownership' and the array of value-added services provided."  7.      Creation of Strategic Inter-functional Teams   ·         Logistics superiority as a driver of differentiation can be achieved only when all parties in the marketing organization are integrated in terms of the basic concept of customer satisfaction, the potential of logistics leverage to aid in obtaining customer satisfaction, how the message of logistics customer value needs to be communicated, and to whom this message should be delivered.   ·         To achieve logistics leverage, marketing must recognize the role logistics plays in achieving customer satisfaction. Without this recognition, the related promotional, pricing, and "service package" strategies to market logistics expertise to the customer will not be achieved. It falls to logistics to develop and deliver the logistics excellence that marketing has identified as important to customers.  8.Organizational Issues   ·         One way to leverage logistics excellence is to establish hierarchies and reporting relationships that maximize the integrated potential. When marketing, sales, and logistics each report to a separate vice president, each with their own organization, more effort will be required to break down the inherent organizational barriers so that integration is achieved.   ·         However, since logistics is a customer satisfaction impacting function and its significance as a competitive marketing tool has been demonstrated, logistics should logically be more closely aligned organizationally with marketing. Rather than a team approach, if logistics reports directly to marketing, the potential for maximum market impact of logistics leverage is increased. 

anwer abdalla mohammed aboubakr
par anwer abdalla mohammed aboubakr , أستاذ مساعد , كليات بريدة


1- study the use of  automated tools
2- integrations of goods shipment & transportation times with order entery
3- maintenance of transportation
4- improvement in designing transportation system,methods,tools & procedures
5- improvement in employees & tools

Ahmed Fathy
par Ahmed Fathy , General Manager + EBRD International Adviser , RUBEX for Metal Industries

Dear Amal kindly accept my abolgise because i havent a good answer to your question.
Best Regards

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