A trade lane (or trade route) refers to a specific pathway along which goods are transported between two or more locations, typically across international borders. Trade lanes are established based on the flow of goods and the economic relationships between countries or regions. They encompass both maritime and air routes and play a crucial role in global supply chains by facilitating the movement of goods and fostering international trade.
Transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.
Transloading refers to the process of transferring goods or cargo from one mode of transportation to another, typically from one type of truck or railcar to another, or from rail to truck and vice versa. This logistical practice is often employed to optimize transportation routes, reduce costs, and improve overall efficiency in supply chain operations.
A Transportation Management System (TMS) is a specialized software solution designed to streamline and optimize transportation and logistics operations within supply chains. It provides functionalities to effectively manage and control the movement of goods from origin to destination.
Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.
A transshipment is the process of transferring goods from one transportation vehicle or vessel to another during their journey from origin to destination. It typically occurs at intermediary points along the supply chain route, where cargo is transferred between different modes of transportation, carriers or vessels.
Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.
An Ultra Large Container Vessel (ULCV) is a massive container ship used on major trade routes, capable of carrying over 14,000 TEUs.
Vendor Managed Inventory (VMI) is a supply chain management strategy where the supplier or vendor takes responsibility for managing the inventory levels of their products at the customer's or retailer's location. In this arrangement, the vendor monitors the inventory levels based on agreed-upon criteria such as sales data or inventory levels, and initiates replenishment as needed.
Verified Gross Mass (VGM) is a term used in the shipping industry to refer to the total weight of a packed container, including its contents and packaging materials. It is a crucial requirement mandated by the International Maritime Organization (IMO) under the Safety of Life at Sea (SOLAS) convention to enhance safety in maritime transportation.
A floating structure with its own mode of propulsion designed for the transport of cargo and/or passengers. In the Industry Blueprint 1.0 "Vessel" is used synonymously with "Container vessel", hence a vessel with the primary function of transporting containers.
A vessel sharing agreement (VSA) is a cooperative arrangement between shipping companies that allows them to share space and resources on vessels for specific routes.
Vessel bunching refers to the situation where multiple vessels arrive at a port simultaneously or within a short period, leading to congestion and delays. This clustering of vessels can overwhelm port facilities, causing extended wait times for berthing, loading, and unloading operations.
A vessel call sign is a unique identifier assigned to a ship for radio communication purposes. It is used to distinguish the vessel from others in maritime communication systems, including VHF radios and satellite communications.
A vessel omission (sometimes called a port omission) occurs when a scheduled vessel does not call at a planned port during its voyage. This disruption means that the vessel skips the port entirely, which can impact the transportation and delivery schedules of goods.
In cargo shipping, vessel rotation is the planned sequence of port calls that a shipping vessel follows on its route to optimize cargo loading and unloading operations.
The timetable of departure and arrival times for each port call on the rotation of the vessel in question.
A journey by sea from one port or country to another one or, in case of a round trip, to the same port.
Warehouse utilization is a logistics metric that refers to the effective use of available warehouse space for storing goods and inventory.
Order for specific transportation work carried out by a third party provider on behalf of the issuing party.
Logistics yard management refers to the process of overseeing and controlling the movement of trucks, trailers, containers, and other vehicles within a yard or distribution center. This includes tasks such as scheduling, tracking, and coordinating the arrival, departure, and storage of these vehicles.
Improving Customer Service in the Logistics Industry
With shifting customer expectations driven by the "Amazon effect”, real-time tracking and seamless communication have evolved from luxuries to necessities in logistics customer service.
This article explores how logistics providers can leverage visibility technology to enhance the customer experience, streamline operations, and stand out in a competitive market.
Shifting Expectations of Logistics Customer Service
Customer service expectations in the logistics industry have changed considerably over the past decade. As a consequence of the “Amazon effect”, consumers have grown accustomed to having a real-time view of everything they buy—from books to groceries. Companies like Domino’s have even gamified tracking, letting customers follow their pizza’s journey in real-time. This high level of visibility has spilled over into the B2B world, reshaping what shippers expect from their logistics partners.
For shippers, inventory is their lifeblood. Delays or uncertainties in the supply chain can disrupt their entire operation, making real-time updates on shipment progress not just a convenience but a business imperative.
However, meeting these expectations with traditional methods can overwhelm your operations and customer service teams. Assigning staff to manually track freight and communicate updates is both time-consuming and inefficient. It also diverts resources from higher-value tasks, creates a subpar experience for both you and your customers and inhibits your ability to proactively manage issues on your customers behalf.
Logistics providers are adapting to these changing expectations by leveraging technology that automates visibility and communication, creating a seamless and efficient service experience that will keep you in your customers' good graces.
Consequences of Poor Customer Service in Logistics
As in any business, customer service and retention go hand in hand.
Customers pay you to manage all the complexities associated with moving their goods around the world. If every customer touchpoint feels like a struggle, then customers will rightfully become agitated, start questioning the value they are receiving and ultimately seek out new service providers.
Customer Service as a Differentiator
Just as poor customer service can be your downfall, when done well it can be a real point of differentiation.
The logistics services market is overwhelmingly driven by price. Shippers want the best rates and shortest lead times. In a sector where margins (and profits) are as volatile as freight rates, there tends to be an underinvestment in improving the customer experience.
But the reality is that your customers place value on being able to interact with you in a way that is convenient for them – and that likely does not include chasing you for tracking updates and waiting a day (or more) to get a spreadsheet with updates that have been pulled manually from carrier portals and might already be out of date.
Having on-demand access to all the relevant details about your shipments is vastly preferred to reaching out to customer service teams. If you can successfully deliver this experience, the reputational benefits of being easy to work with will go a long way in helping you stand out in an otherwise homogenous market – and shippers might just be willing to pay a premium for your services.
How to Improve Customer Experience in Logistics
The good news is changing how you support customers isn’t as difficult as it might seem.
At Beacon, our visibility and workflow automation platform has helped dozens of logistics service providers connect their customers with real-time shipment tracking information.
Setting up bespoke, shareable tracking dashboards for each of your customers takes just a few clicks. Once set up, customers can access a live view of their shipments from any browser, whenever they want, using a single, static URL. Embedded document sharing and chat further streamlines logistics customer service workflows.
The benefits of this approach extend beyond improved customer service. It also enables you to scale more efficiently. By eliminating virtually all the “Where’s my stuff?” questions that can bog down customer service and operations teams, you can escape the trap of having to expand headcount to serve a growing customer base.
Claim your Beacon free trial and step into the future of logistics customer service.