That the logistics are more complex no one doubts. Omni-channel, restrictions on urban circulation, shortening the life cycle of products, the need for global resource management... 20 years ago, online shopping was non-existent, cities did not impose restrictions on trucks and globalization was a recent word in the vocabulary of consumers. executives.
Although it is always said that the demand for logistics services is increasing, the level of service provided by companies is not.
Are companies delivering faster? "No". Are companies delivering more frequently? "No". Are companies delaying less? "No". And several other “No” responses were observed when analyzing historical data from surveys conducted by the ILOS (see Figure 1).
Figure 1 - Comparison of service indicators in 1994 and 2014
Source: Customer Service ILOS Survey
Notes:
- The Customer Service survey interviewed supermarkets, which evaluated the logistical performance of industries supplying perishable food, non-perishable quality Hygiene and cleaning.
- The data presented include responses from supermarkets in Rio de Janeiro and São Paulo.
- The frequency of deliveries began to be monitored in 1999.
But the race to improve service levels did exist. It was recorded for about 10 years in our surveys carried out between 1994 and 2004. But from then on, the movement of companies began to reverse. Some companies, recognized as benchmarks and leaders in terms of service, decided to change their strategies, reducing logistical services in favor of cost reduction and greater rationalization in the use of resources.
The question that arises here is: reducing the level of service is not necessarily bad! Service at any cost is not a good business strategy, except for a few rare exceptions. Productivity is the key word, especially in periods of economic crisis.
The alignment of customer expectations, the direction for changes in purchasing behavior, and the understanding between the links in the supply chain that the logistics service has a price, which can even be calculated and charged, has become a reality in planning of organizations. The risk to be calculated is the loss of Market Share to competitors who prefer to sacrifice their margins, maintaining high service levels without charging for it.
It is worth reflecting on this topic now, because the future holds an even more complex and expensive logistical reality!
References
Maria Fernanda Hijjar
https://ilos.com.brExecutive Partner of ILOS, holds a master's degree and a degree in Production Engineering from the Federal University of Rio de Janeiro (UFRJ). With more than 10 years of experience in the field of Logistics and Supply Chain, working on several projects, management and participation in research associated with the subject. She has more than 20 articles in newspapers, magazines, periodicals and congress annals, being co-author of several titles in the COPPEAD Collection by Atlas publishing house and in the Panorama Logístico Collection ILOS and CEL / COPPEAD.
