Analyse how logistics operations are matched to customer requirements

Analyse how logistics operations are matched to customer requirements.

Expert Answer

In Porter’s Value Chain model Operations and logistics are the primary activities among others like Sales & Marketing and Service. All the primary activities must necessarily mapped with the customer requirements. This is important to provide the value to the customer.

In today’s competitive world, customers are demanding more and more from businesses. Every customer wants a customized solution. Keeping this in mind every activity in organization should be matched to customer requirement.

Logistics operations are matched with customer requirements right from the sourcing of material to inventory to operations to delivery.

For example: A lot of companies outsource their business, especially information technology to India. There are many big banks and healthcare provider outsourcing their technology operations to India. No IT service provider maintains its logistics operations as per client requirement. Since a lot of data is sensitive and require high security standards. Many IT service providers make their employee work in secured working bays wherein one isn’t allowed to carry or any other recording device. This is how they change their operations to align with the client requirement.

Companies work towards building a customer centric approach in all aspects.

  1. Information: A lot of data regarding the operations for the clients is generated and logistics operations are further improved upon gaining the insights from this data.
  2. Prediction: Using the data better forecasting is done to make the process efficient and as per the customers’ requirements.
  3. Transparency: Transparency is another quality businesses have to on-board clients with. Clear & operations give clients confidence in the business.
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