The strategy of (logistic) services tailored to client needs

Are two large operators on the Polish market, one positioning itself as a “cost leader” and the other as a ”product leader” in terms of comprehensiveness and quality, which created the potential for us to develop as a “tailored service leader”.

Łukasz Tomalik, Green Factory Logistics

In 2020, despite the difficulties caused by the pandemic, we decided to review our operations and prepare an action plan until 2025. One of the elements of the work on strategy was to analyse the factors which distinguish us from other national and european operators. We found the most important discovery right in front of our eyes. We noticed that there are two large operators on the Polish market, one positioning itself as a “cost leader” and the other as a ”product leader” in terms of comprehensiveness and quality, which created the potential for us to develop as a “tailored service leader”.

At the same time, as part of our internal review, we found that the diverse customer requirements we meet (so far viewed as somewhat a challenge) could be the source of our competitive advantage. Until now, we have followed the popular assumption that logistics inherently prefers standardization. However, in the process of building our strategy, we discovered that our core advantage is the ability to reconcile the different needs and interests (industries, temperatures, requirements, locations, flows) of clients, which on a certain scale, if well managed, can complement and balance each other out. We decided to follow a “tailored service leader” strategy because in our conversations with clients we noticed that for some of them the recent “stiffening” of operator standards is not good at all. Of course, automation and optimization are in line with what is expected of logistics, but excessive standardization in the market has left those customers who require flexibility unattended, and we have found a niche for ourselves right there.

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Łukasz Tomalik
Green Factory Logistics

 

The key assumption of the “tailored service leader” strategy is to understand client requirements. It is not about offering a cheap service or a comprehensive, all-inclusive service, but rather looking at the strategies and goals of our clients and their end-customers. Hence, when working with new or potential clients, we start by identifying whether their needs are so specific that they require a specific, tailored approach to logistics handling. These needs can be very different in the different sectors in which our customers operate. On the one hand, we have fixed delivery points, on the other hand there are areas of the country with different delivery densities and different types of flows (dairy, meat, vegetables, fruit, etc.) That is why our customer service department is a bit different from what others offer: we provide ongoing contact with clients and solve their problems till the end, we do not force our clients to fit into our assumptions, but try to fit in with theirs in terms of e.g. communication methods used. A tailored service requires more flexibility in our network, but we also adapt regionally to clients’ needs in terms of client service they are provided with, and our client service representatives also have the right specialization in terms of the client’s industry or field of operation.

Such approach may not necessarily work for absolutely every client, which is why we focus on those for whom a specific, precise and tailored service is just as important as the logistics cost. Therefore, a “tailored service leader” strategy requires specific competences in the sales department – a sales team capable of asking clients the right questions. We include people with former consulting experience in preparing proposals because our sales process requires the ability to understand the needs and tailor the services accordingly.

Moreover, the strategy of tailoring services to clients’ needs is not only about maximizing quality. Quality and service tailoring are two different things. As part of a specific tailored service, we also aim for providing highest quality, but our priority and our basis for winning high customer ratings is by tailoring our services and striving for appreciation on such basis, delivering quality but also not forgetting about the specific requirements.

In order to implement the fit-to-needs strategy, we first had to make people believe in it, build clear and understandable communication to clients, focused on the language of responding to their needs. In terms of further development plans, we will continue to expand our services to existing and new clients in the food segments with international services. We are also preparing to service other sectors (non-food) as part of expanding our portfolio of services through an appropriate, dedicated distribution channel.

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