- The Freight Transport Association’s Logistics Report 2017 states there are roughly 178,000 UK logistics companies, many of which operate as sole proprietorships, The Telegraph reported Thursday. Collectively, however, they earn more than £1 trillion ($1.3 trillion) and provide employment for 8% of the workforce, some of which is handicapped.
- Clients find them more nimble and flexible than some of the giants in the industry. Customers report using them to transport sensitive items such as human ashes, a piano, and even a rapid-fire relocation as a result of divorce. On average, such small firms have a 97% accuracy rate.
- Even Amazon, a logistics titan, is in reality comprised of dozens of self-employed delivery drivers.
Customer satisfaction drives success more than brand or price. In March, ocean cargo shippers were surveyed about their levels of satisfaction with carriers, which revealed a consistent level of frustration with service with regard to price transparency (where they earned 3 out 5), contract adherence (3.05 out of 5) and accuracy of booking confirmations or notices (3.1 out of 5).
By comparison, smaller cargo carriers earned better reviews than big logistics carriers like DHL and UPS, which consistently received only a single star rating on Consumer Affairs, based on hundreds of ratings and reviews. Logistics companies should be wary of such low ratings, because too many could result in the loss of customers.
It seems safe to conclude, therefore, that pleasing customers matters more than managing the bottom line since no bottom line exists for companies that fail to impress.