7 Reasons Why Transport Logistics Providers Want Their Own CRM

Marina Astapchik
IT Trends Research Specialist
April 26, 2013

The nature of transportation and logistics sector has changed with the globalization and technological boom. Logistics Service Providers (LSPs) need effective tools to guide business processes, to track customers and transactions in a competitive manner, and implement new approach to customer relationship.

Launching new services, targeting different industries, moving into new territories requires that company's communication with partners and clients will be effective. In addition to transportation and storage, logistics companies can also assemble or package goods and provide consulting work to address complex global supply chain problems. For this reason Customer Relationship Management (CRM) system appeared on market to serve as a key point for sales funnel and client relations in logistics companies.

Customer Relationship Management (CRM) is a model for managing a company's interactions with current and future customers. CRM tool is an advanced solution to integrate, organize, automate and synchronize sales, customer services, marketing, order management, pricing, technical support which helps improve customer satisfaction and deliver goods on time. There are several reasons why it’s profitable for logistics service providers to invest in a CRM system:

Reason 1: Increased productivity

Well-developed and thought out CRM system always helps pre-define some general workflows for every department and automate administrative tasks. Using it, your staff members will spend less time on filling forms, making quotes & proposals, creating reports, running calculations and will thereby raise their productivity.

Reason 2: Systematic way to track business activity

CRM solution helps understand when and what is needed to be performed for which customers. With the help of this IT tool you are able to unify all your business areas and thus track them in one place. Leveraging this market information, a logistics company will be able to maintain competitive pricing and delivery options.

Reason 3: One source for all the necessary data

A CRM system allows you to have access to constantly updated information for decision-making and communication between staff members and departments with different office locations. It’s an opportunity to build intelligent customized interfaces with all contacts along business lines available by CEOs, CFOs, CIOs, and line managers.

Reason 4: Measurability of marketing and sales activity

CRM services can help transportation and logistics business capture better understanding of customer needs and behavior. This will give a possibility to manage effectively time, business resources and efforts which then benefits clients and overall business.

Reason 5: Individual customer service

Industry-based CRM platform gives a clear road map for effective communication with partners or clients and provides access to industry best practices. Knowing your customers needs and the main points to contact them you can identify major clients increasing their loyalty and mitigate the possibility of relationship with irresponsible customers.

Reason 6: Automated information updating

CRM software helps benefit business profitability focusing on timely updating customer information and fast order processing. It also allows to organize efficient shipping of FCL/LCL freight and delivery of dangerous/perishable goods.

Reason 7: Ensuring safety of shipments

Due to cross-globe operations and various regulatory systems in all the different countries it’s usually hard to propose on-time delivery and 100% safety of goods. Customized CRM system can have integration with electronic databases such as Transit MRN to provide information about current status and location of the cargo.

Taking into consideration all the above mentioned advantages, it's evident that a customized CRM system can drive up profitability and provide a systematic way to measure and control everything that is happening in your business regarding communication and relationships with customers.

Industries and Technology Areas:

Industries: logistics, transportation, information technology

Technology Areas: software CRM development, CRM application development

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