Blog by Wayne Reidie Customer 1st (UK) Ltd www.cpctransportmanager.com Customer Experience – the eighth R According to PWC, (November 27, 2023) in the logistics industry, we must focus on the “ seven Rs to customers: the right product(s) must reach the right recipient at the right level of quality, at the right time, in the right quantity, with the right information, and at the right price.’ But as PWC point out , ‘this has recently changed, encompassing an eighth R, namely the right experience .’ Here at Customer 1st, we are closely aligned with the concept, that without customers, we are nothing. And that is, both sets of customers – internal and external. With our new Transport Manager CPC training facility, we are obsessed with the impact of our industry on customers and stakeholders, and also bring sustainability to the fore-front of our core message. A concept, where McKinsey & Company state ‘ Consumers care about sustainability-and back it up with their wallets .’ (McKinsey et.al). It is just one example of a piece of writing, that backs up our obsession with combining Corporate Social Responsibility with Next Generation Transport Manager training AND Customer Service, whilst looking after our people along the way. As Traffic Commissioners continue to focus on ensuring fair competition it is vital to ensure that we are improving the customer experience to differentiate ourselves not only from other industries [be ahead], but from our competitors. Not by cutting costs, or reducing compliance, but through a mind-set change. Still, I encounter, disengagement - surrounding corporate social responsibility within the transport industry. Digitisation continues to provide added value, changing the landscape, including to, the economy, products and services (mostly good) and, we agree that where we focus on sales, service and marketing, we must also ensure that Customer Service evolves to bring Companies in to the 21st Century. The Transport and Logistics industry continues to lag Telecommunications, Retail, and even Healthcare. To me, this is not much of a surprise. At present we have saturation, combined with driver commodity, and not enough investment into customer retention, sustainability or preparing for the future. According to a recent set of data from the ONS - 12000 drivers are leaving the industry each year, yet only 6000 joining. The Next Generation Transport Manager concept at Customer 1st fits well, into the customer journey, ensuring that the next generation of TM’s are more focussed on not just a bunch of numbers, nor the usual main objective, profit. The last time I checked, there are three P’s now – not one. Our people are also one of our biggest assets. AKA Human Assets. As somewhat of an oxymoron (I guess), investment = reduced profits, or at least initially. It is hard to see the benefits straight off the bat. However, through re-investment, it can create added value for customers and employees. According to a plethora of resources, not least one, - Deloitte state, ‘ an average return of £4.70 for [every] £1 invested in employee’s mental health and well-being’ . So - not bad huh? But yes, all good, we probably understand why – health care benefits, flexible working hours, more incentives, and better pay, but to pay for it; we need to be able to afford it. Whilst the economy continues its downward spiral, probably, and as is the case with many logistics’ firms, there is no money to invest! From a macro-economic perspective, we are of the firm belief that someone needs to step in to encourage the concept of investment, but not just from a national minimum wage perspective. It does not take much effort to see we are also lagging behind other countries - Germany as example. Where we talk around the eighth R, ‘experience,’ it drives retention, loyalty, repeat business and, recommendation. Combine this with added value, and increased efficiency and productivity, reduced absenteeism and reduced presenteeism (we will come on to that later), this is all good, yes? For firms that are almost controlled by their regular clients, who is driving the change? You, or the client? Another vicious cycle, where if you do not deliver on your promises, to them and their clients, you will firmly be out the door. PWC discuss a ‘ virtuous circle ,’ having high moral standards – but isn’t that a concept that we are all aiming to deliver (darn these puns)? My view is that with the next generation of Transport Managers’ they will be more focussed on areas of the business that need addressing, and let’s be honest, it’s been a long time coming. We are proud to be supporting the ‘ Next Generation’ concept in partnership with The Chartered Institute of Logistics and Transport (CILT). Not only focussing on bringing more women into the sector, but retaining the experience that we already have, and ensuring that future leaders, are obsessed with the ‘theatre,’ that goes on behind the scenes. But we are not play-acting here, we must focus on the ‘ practical application .’ Here at Customer 1st – we do precisely that. With DVSA’s sustainability message, they are also clear on where we need to get to, where we are heading, and where we need to be, but operators are stuck in a rut. The Next Gen Transport Managers’ certificate of professional competence tuition will cover off this order of business within their training at Customer 1st, and now uses terms such as sustainable marketing, ethical staff and working practices, diversity, and human return of investment. Isn’t it time? Time for our industry to step up to the plate and start delivering, not just in relation to the 98% of goods delivered by rail and road but focus on the future. How about, we now focus on the 98% of staff we need to retain, to be able to deliver the goods and services in the first place, start delivering a 98% success rate of delivery, a 98% customer satisfaction ratio and, a 98% buy in from the current leaders in the industry to invest in sustainability, ethics, people and training that, well, just makes sense doesn’t it? I recall many years ago, when someone asked me how I was going to be more sustainable, I started chanting about investment in our teams, but missed the point.. sustainability, as in, 'maybe turning a few lights off here and there,' and 'looking for better solutions to fuel!'.. oh yes, I forget about that type of sustainability! Alignment only ever occurs, when everyone is on the same page. Only with that mindset, will there ever be a future, especially a sustainable one. Not to mention, an industry that people want to be part of. Next Generation Transport Manager CPC CILT Accredited Learning Partner. OLAT – TM Refresher and TMCPC All views and opinions are that of the blogger! Biography CILT UK, (2024) 'Next Generation Forum' [Accessed 27th December 2024] Deloitte (May 2024), 'Mental Health and employers' [Accessed 27th December 2024] DVSA (March 2024), 'Sustainability Strategy' [Accessed 27th December 2024] McKinsey & Company, (February 2023), 'Consumers care about sustainability-and back. It up with their wallets' [Accessed 27th December 2024] PWC, 'Customer Experience in transport and logistics,' (November 2023) [Accessed 27th December 2024]