Customer service is vital for companies and their third-party logistics providers. Satisfying customers helps businesses grow through continued and new business. 3PL providers must maintain high customer service and treat all customers - their customers, their customers' customers, and internal customers - well to be successful. When choosing a 3PL, companies should evaluate factors like communication, shipping capabilities, technology, employees, ethics and cultural fit. Prioritizing customer needs at every stage helps 3PLs meet the complex, strategic requirements of shippers.

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Customer Service and Logistics
Reginald Anton Dunham
Virginia College, Macon, Ga.

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Abstract
Customer service is an integral part of a company’s job and should not be seen as an extension of
it (Friedmann, 2015). A company’s most vital asset is its customers. Without them, it would not
and could not exist in business. When they satisfy their customers, they not only help them grow
by continuing to do business with them, but recommend their company to friends and associates.
Companies are in business to service customer needs, and can only do that if they know what it
is their customers want (Friedmann, 2015). When companies truly listen to their customers, they
let them know what they want and how companies can provide good service. 3PL or third party
logistics providers must maintain a high level of customer service to maintain customer
satisfaction. Companies outsource for cost savings and improved quality. They believe that 3PL
providers can either better provide supply chain services, or can offer better quality of these
services, than if the company attempted these functions internally (Mayer, 2015). Finding a
good 3rd Party Logistics Company can be challenging. Many companies claim to be the best so
it is important to look at a number of different factors when choosing a provider for your
company. Taking your time looking at these critical success factors will help ensure that you
choose the best 3PL company for your business (Faro, 2015).

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Customer service is an important element for creating and maintaining a successful
business. According to Murray (2015), “You can have a wonderful product, but without
excellent customer service the item will never be purchased” (p. 1). Customers interact with a
company through a number of channels and the level of service received from the company has
the potential of going a long way to obtaining customer satisfaction (Murray, 2015).
Interestingly enough, the essence of customer service is for customers and companies to get to
know one another (Self, 1998). As stated by Self (1998), “Customer loyalty develops as
customers feel a connection with a company. After all, most companies have the same "stuff";
it's the service that causes product and company differentiation” (p. 1). Customer service is
important because it does more than simply provide a means to drive sales. Customer service
raises the bar of competition. The only way companies can effectively accomplish this is by
creating a corporate culture steeped in tradition with the focus on the customer. When a
company is committed to customer service, its corporate culture will change to absorb this new
dimension, first becoming an integral part, then becoming the driving force causing amazing
results to take place (Self, 1998). These higher customer service standards produce a
competitive advantage. Expectations of customers are increasingly rising and companies must
tailor their approaches to match these demands. Customers will not continue to except subpar
service. As mentioned earlier, competition is fierce and the only thing that distinguishes one
company (who sell similar products or services) from the other is their service level and
commitment to it (Self, 1998). Improving customer service requires the willingness to change
and improve. Companies are encouraged to listen to the feedback given back by its customers
and implement any changes necessary. Customer retention is the most important aspect of any

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successful business. One lost customer is one too many and could result in a negative ripple
effect.
Logistics describes the activity of moving freight from one place to another. The
logistics process has many components, from the shipper to the transportation company, the
receiver and the commodity. Customer service is an essential aspect of this process (Taylor,
2015). Poor customer service can lead to higher costs for the shipper. If the transportation
company does not communicate with the shipper and the receiver, the cost for the transportation
of the load will increase. For example, if the transportation company does not advise the
receiver when the truck will arrive, the truck company may incur overtime costs, which will cut
into the profit on the load (Taylor, 2015).
Third-party logistics refers to the outsourcing of logistics functions and other supply chain
functions to third-party providers, also called 3PL providers (Mayer, 2015). As stated by Mayer
(2015), “Companies outsource for cost savings and improved quality. They believe that 3PL
providers can either better provide supply chain services, or can offer better quality of these
services, than if the company attempted these functions internally. Companies use 3PL
providers to outsource sections of the supply chain, from a small link to the entire supply chain.
Companies consider cost savings, shipment turnover, loss rates, and on-time delivery rates when
deciding to use a 3PL provider” (p. 1). Companies also consider outsourcing to a third party
logistics provider to best address today’s increasing regulations and demand volatility (Syfan,
2015). According to Syfan (2015), “A 3PL is much more familiar in dealing with the complex
transportation regulations of the federal government, as well as among different states. The same
goes with handling the peaks and valleys of customer shipment demands—3PLs have much

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more capacity with a network of carriers to deal with fluctuations in shipping needs. By leaving
all these headaches to a 3PL, manufacturers can better focus on what they do best” (p. 1).
Now the key is to find a third party logistics provider, that does whatever it takes to fix
shipping problems, believes there is no such thing as “just a transaction,” and whose drivers
smile when they make deliveries and are happy to go the extra mile for your customers. Imagine
a company that believes every delivery involves a shipper and a receiver— and a chance to build
a trusting relationship (Rodeheffer, 2015). It’s one that can come true— with a 3PL company
that employs ‘Golden Rule’ customer service. According to Rodeheffer (2015), “This means its
staff treats others as they want to be treated, from customers to other internal employees to
contracted drivers. It’s a 3PL that pays carriers on time instead of delaying payment to maximize
cash flow, and is aware of the need for financial flexibility in difficult situations” (p. 1). Golden
Rule customer service means honest and transparent communication with people who not only
admit when there is a mistake, but head off potential problems with proactive solutions.
Finding a good 3rd Party Logistics Company can be challenging. Many companies claim
to be the best so it is important to look at a number of different factors when choosing a provider
for your company. Taking your time looking at these critical success factors will help ensure that
you choose the best 3PL company for your business (Faro, 2015).
There must be good communication between you and the 3PL Company in order to
facilitate a successful relationship. Communication is not something we do to people; rather, it
is something that is done between people. Together you must be able to understand one
another's needs and objectives in order to effectively communicate. Being able to communicate
clear objectives to the 3PL is important. And in return, you'll need to be sure that you choose a

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company that values communication, has established capabilities and processes to facilitate this
type of interaction and knows what it needs from you to successfully operate (Faro, 2015).
Shipping is a critical part of the logistics process in terms of: Delivering products to your
customers in a timely fashion and minimizing your costs and should be a determining factor in
choosing the right third party logistics provider (Faro, 2015). The receiver of your product
expects product to be delivered on time. The receiver also expects the goods to get there in an
acceptable condition. Breakage costs money and makes the customer dissatisfied.
One of the most important aspects of logistics is technology. When looking at 3PL
provider consider these options: Do they stay up to date with the latest processing, shipping,
tracking tools and technology? What systems are in place for dealing with reporting order
processing, system limitations integration and inventory control (Faro, 2015)?
Another determining factor in choosing the right third party logistics provider for your
company is their people. As stated by Faro (2015), “Oftentimes the difference between average
3PLs and high performing logistics companies is their people. You should look for a company
whose people will help you: develop your company's objectives, identify new opportunities, and
are able to build your relationship based on trust, possess a commitment to going the extra mile,
and retain an extensive knowledge of the industry, transportation and management” (p. 1).
Finally, companies should choose third party logistics providers who embrace strong
ethics and companies who Mission and Value statements coincide with theirs. An example of a
good Mission and Value statement is “Dedication to our global trading partners through the
delivery of superior service as well as innovative, adaptive and safe logistics solutions, which
enhance our partners' quality, performance and profitability. To deliver superior service to our
worldwide trading partners by providing exceptional value, consistent performance, and creative

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logistics solutions. To invest in quality people with enthusiasm for excellence and desire for
advancement. To provide a healthy and safe working environment with resources, programs,
and benefits designed to improve productivity and enhance all employees quality of life. To
engage in good corporate citizenship and maintain the highest ethical and moral standards. To
maintain a leadership position regarding information technology and innovative business
practices. To treat our clients, suppliers, and employees with fairness, dignity, and respect”
(Gateway Logistics Group, 2015).
There are a lot of things to consider when looking for a 3PL company to do your storage
and shipping. As you can probably see, it takes a company with a full scale offering that can
function on multiple levels especially in the area of customer service. There are a lot of third
party logistics companies that perform well in one area or a couple of areas, but partnering with a
company that can offer all of the above attributes will put your company in the best possible
situation.
When it comes to customer service, shippers want their carriers and 3PLs to provide the
complete package (Partridge, 2015). In today’s complex supply chain environment, customer
service between shippers and their logistics providers means more than just a friendly voice on
the line when something goes wrong. It is more than the ability to track a shipment or expedite a
delivery. According to Partridge (2015), “Today, shippers expect their logistics providers to take
a “cradle-to-grave” approach to customer service, providing insight, strategic guidance, and a
wide range of capabilities from the very beginning to the very end of the supply chain. From
transportation of inbound raw materials to vendor management to outbound deliveries and
everything in between, shippers depend on their providers to execute flawlessly, while acting as
an extension of their company” (p. 1).

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To meet these types of expectations, logistics providers must take the time to truly
understand their shippers’ supply chains, to know the complexities of the industries they function
in, to design their functionalities around desired outcomes, and to determine how to ease their
customers’ customers’ pain points (Partridge, 2015). It is a big job, and one that is likely to get
bigger.
Third party logistics providers and carriers are responding to increased shipper demands
by stepping up their games, pushing customer service to the forefront. Many providers have
adopted service-centric cultures to ensure they meet shippers’ service requirements— and to gain
a competitive advantage in the crowded outsourced logistics and transportation field.
One major factor in fostering satisfactory customer service is building the right
shipper/provider relationship. Shippers that take a strategic and collaborative approach to
logistics outsourcing— rather than viewing it as a commodity play— often form more effective
partnerships, leading to improved customer service throughout the supply chain (Taylor, 2015).
Partridge (2015) states, “Another key aspect of serving shippers strategically and
collaboratively is making sure to always operate with customers’ customers in mind. Because
supply chains are interconnected at every level, bad service at one link will ricochet throughout
the chain, ultimately impacting the end user” (p. 3).
“It is imperative that we understand what our customers’ customers are looking for in
order to align our services, processes, and people to those goals,” Abernathy (2015) explains.
“Determining our customers’ customers’ needs is our first priority, whether we are prospecting
for potential customers, designing solutions for new customers, or reviewing goals with existing
customers” (p. 3).

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In conclusion, customer service is an integral part of a company’s job and should not be
seen as an extension of it (Friedmann, 2015). A company’s most vital asset is its customers.
Without them, it would not and could not exist in business. Customer satisfaction is what makes
for a successful business. When they satisfy their customers, they not only help them grow by
continuing to do business with them, but recommend their company to friends and associates.
Companies are in business to service customer needs, and can only do that if they know what it
is their customers want (Friedmann, 2015). When companies truly listen to their customers, they
let them know what they want and how they can provide good service.
Third party logistics providers must maintain a high level of customer service with their
customers and their customers’ customer. 3PL providers are involved in all phases of the
distribution process, from the storing of the raw material to the delivering of the finished
product. Such engagement requires them to put quality service at the top of their priority list.
Not only do they have to satisfy their customer and their customers’ customer, they have to
satisfy internal customers – employees as well. Creating a culture where employees are
encouraged to express ideas will increase employee relationships which are crucial for
organizational success.
Essentially, good customer service is important for third party logistics providers in hope
for return business, more business, and new business. Good customer service leads to many
benefits. Not only will you gain trust with your current clients, they'll also become a wonderful
referral system as they spread the word about your business to other prospects. Whether it's
positive or negative feedback about your service, people will talk. In the long run, treating people
fairly and with respect will bring business to your company today and in the future.

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References
Faro Logistics Solutions. (2015). What makes a good 3PL Company? Retrieved from http://
www.farousa.com/index.php/services/what-makes-a-good-3pl-company
Friedman, Susan A. (2015). Ten Commandments of Great Customer Service. Retrieved from
http://marketing.about.com/od/relationshipmarketing/a/crmtopten.htm
Gateway Logistics Group. (2015). Mission Statement. Retrieved from http://www.gateway-
group.com/mission-statement/
Mayer, Jen. (2015). What Is 3PL Logistics? Retrieved from http://ehow.com/facts_691682_3pl-
logistics_.html
Murray, Martin. (2015). Customer Service. Retrieved from http://logistics.about.com/od/for
smallbusinesses/a/Customer-Service.htm
Partridge, Amy Roach. Managing a Customer-Driven Supply Chain. Retrieved from http://www.
Inboundlogistics.com/cms/article/managing-a-customer-driven-supply-chain/
Rodeheffer, John. (2015). Does Your 3PL Provide ‘Golden Rule’ Customer Service? Retrieved
from http://www.inbounlogistics.com/cms/article/does-your-3pl-provide-golden-rule-
customer-service/
Self, Dr. John T. (2015). Why Customer Service is Important to You(And Me). Retrieved from
http://www.sideroad.com/cs/column3.html
Syfan, Steve. (2015). Outsourcing to a Third-Party Logistics Provider. Retrieved from http://
www.inboundlogistics.com/cms/article/outsourcing-to-a-third-party-logistics-provider/
Taylor, Hunter. (2015). Importance of customer Service in Logistics. Retrieved from http://www.
ehow.com/facts_7161008_importance-customer-service-logistics.html