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Why is it important for firms to have a logistics strategy? What could happen if a firm did not logically link it’s logistics decisions to the needs of the customers? At least 5 to 8 sentences***
Expert Answer
Logistics customer service is very crucial for the company since it directly affects various performance parameters of the company:
- Sales: There is a direct impact of the levels of service on the sales revenue. When the levels of customer service goes down sales revenue also goes south. It has been proved that a customer will look for a product with the best quality service. Now the levels of service have been attached with that of the product and hence customer service is also a integrated part of the product.
- Customer satisfaction and loyalty: Customer loyalty is an important consideration for the company since it dictates the future demand of the product. In case the company loses a loyal customer there is a cost associated with it and the company loses because of the same.
