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on-site logistics customer experience

How does on-site logistics improve the final customer experience?

The logistics and freight sector in France is expanding rapidly, with projections estimating the size of the market at $158.57 billion in 2024, and annual growth forecast at 3.55% through to 2030 (according to MordorIntelligence). This dynamic underlines the crucial importance of logistics in the French economy, and opens up prospects for significant progress in terms of efficiency and innovation in logistics flow management.

What is on-site logistics?

On-site logistics includes the integrated management of physical and information flows directly within a company’s infrastructure. This model covers several essential aspects, such as direct supply to production points, handling and storage suitable for loads of various weights, from heavy to semi-heavy. It also includes internal distribution, inventory management, production and shipping logistics, optimization of logistics flows, as well as complete traceability of products and flows.

In the digital era, meeting high customer expectations requires efficient on-site logistics. This method manages physical and information flows directly to the customer, tightly integrating logistics processes with production or service to improve efficiency and enrich the customer experience by guaranteeing rapid product availability.

With the rise of e-commerce, the customer experience is evolving to require not only quality products and services, but also consistent, reliable delivery. Companies like Onet Logistic, by adapting their services to the specific needs of each customer, play a direct role in this continuous improvement of the customer experience. They offer customized solutions that respond to the specific production dynamics of each sector, such as automotive or aeronautics, where timing and precision are essential.

Sébastien Pillet, Director of Onet Logistique, highlighted the significant potential of on-site logistics in France, estimating the market at around 2.8 billion dollars.

This estimate reveals the growing importance of this sector in the French economy. On-site logistics, which integrates the management of logistics operations directly within customer infrastructures, enables advanced optimization of processes, from inventory management to distribution.

Moreover, the impact on the customer experience goes beyond simply satisfying immediate needs; it extends to building a relationship of trust and reduced dependence on external intermediaries. This proximity to the customer’s operations enables a more agile and personalized response to requests, resulting in better customer satisfaction and loyalty.

The direct impact of on-site logistics on the final customer experience

On-site logistics fundamentally transforms the customer experience by placing logistical processes at the core of a company’s operations, enabling greater responsiveness and customization of service. By being directly integrated into production sites or client infrastructures, this approach enables faster, more precise responses to specific customer requests, reducing delivery times and improving the quality of delivered products.

On-site logistics not only impacts the experience of the final customer but also has a significant business impact for companies.

  • Lower operating costs : Effective on-site management minimizes the need for external transport and storage, which translates into lower associated costs.

  • Improving production efficiency : Just-in-time replenishment and precise inventory management ensure that necessary materials are available without excessive delays, reducing production downtime.

  • Better risk management : The proximity of logistics management enables more rigorous control of operations, reducing the risk of errors and quality problems.

  • Increased flexibility and responsiveness : By integrating with the production site, the logistics system can adapt more easily and quickly to changes in demand or other market developments.

On-site logistics in the automotive sector

A concrete example of the positive impact of on-site logistics on the customer experience can be seen in the automotive sector. Automotive manufacturers who adopt this method are able to manage essential parts and components directly on the production site. This not only reduces waiting times for vehicle assembly, but also ensures that models specific to customer preferences are assembled and delivered more quickly. The result is increased customer satisfaction, as they perceive a real improvement in the speed and personalization of service.

On-site logistics in the healthcare sector

Another significant case study comes from the healthcare sector, where on-site logistics is used to manage essential medical supplies directly within hospitals. For example, on-site management of stocks of medications and essential medical equipment can literally save lives by ensuring that necessary treatments are always available and quickly accessible. This directly improves the patient experience by reducing waiting times for urgent care and increasing the hospital’s capacity to effectively respond to emergencies.

The automotive and healthcare sectors illustrate how on-site logistics can have a positive impact on the customer experience by responding rapidly to specific needs. This integration raises questions about the overall efficiency of logistics processes, especially in the face of changing customer demands. It’s time to consider more sophisticated management to maintain and even increase customer satisfaction, by examining the implications of optimizing logistics flows.

How does optimizing logistics flows improve the customer experience?

Optimizing logistical flows through advanced technologies such as Warehouse Management Systems (WMS) and ERP solutions transforms supply chains into more efficient and responsive systems. These tools play a crucial role in intelligent inventory management, not only preventing excess and stockouts but also ensuring precise tracking of products throughout their journey, thereby minimizing errors and delivery delays.

Logistical flow management provides the ability to quickly adapt to fluctuating demands and changing market conditions. Whether through “push” or “pull” flow strategies, the goal remains to reduce waste and control costs optimally. Furthermore, real-time tracking and video traceability increase transparency for customers, enhancing their experience through clear communication about the status of their orders.

While these technologies provide valuable real-time data on logistical operations, they raise an important question: how to concretely measure the impact of these optimizations on the customer experience?

Measuring on-site logistics performance and its impact on the customer experience

Measuring logistics performance on-site is crucial to understanding its direct impact on customer experience and loyalty. Key performance indicators (KPIs) play an essential role in this evaluation. Among the most relevant KPIs for assessing the efficiency of on-site logistics are customer service rate, delivery time, inventory turnover rate, and (Order Picking Accuracy).

Customer service rate

The service rate, a crucial element in logistics and inventory management, represents the percentage of customer orders fulfilled within the agreed lead times. This indicator is directly linked to the efficiency and reliability of a company’s supply chain, assessing its ability to meet customer expectations on various aspects:

  • Product availability : Ensures that requested products are available when the customer needs them.
  • On-time delivery : Guarantees that products or services will be delivered on time, as agreed.
  • Overall satisfaction : A good service rate contributes directly to customer satisfaction, which is crucial to loyalty and the company’s brand image.

Service rate = (Number of requests met on time / total number of requests) x 100

Average delivery time

This indicator measures the time it takes for an order to be fulfilled, from receipt to delivery. Short delivery times are often synonymous with better customer satisfaction, as they meet customer expectations for quick gratification.

Average delivery time = Total delivery time / Total number of orders

Stock turnover rate

The stock turnover rate measures the frequency of stock renewal. This key indicator helps understand the speed of sales and demand to adjust replenishment levels. It can also be used to reorganize the warehouse, categorize products, and identify market trends.

Stock turnover rate = Cost of Goods Sold / Average Inventory

Order Picking Accuracy (OPA)

This KPI measures the accuracy with which orders are fulfilled relative to the customer’s demand. High accuracy in orders reduces the number of returns and increases customer satisfaction.

Order picking accuracy rate = Orders picked accurately / Total number of orders

Performance in these areas directly impacts customer satisfaction and loyalty. Efficient logistics means accurate and fast orders, thus reinforcing customers’ trust in the brand. Effective inventory management ensures constant product availability, thus avoiding frustration due to stockouts. Precise and fast deliveries build a positive customer experience, promoting returns and recommendations.

In this environment, every aspect of on-site logistics must be carefully controlled to ensure not only operational efficiency but also to strengthen long-term customer engagement and loyalty.

Customer Intelligence in on-site logistics

Customer Intelligence, fundamental in on-site logistics, plays a crucial role in optimizing the customer experience and anticipating their needs. It relies on the combination of structured data—business data such as purchase histories, delivery preferences, and transactional interactions—and unstructured data, such as customer feedback, reviews, and comments. The latter are often analyzed using Natural Language Processing (NLP) technologies to extract valuable insights.

The integration of these two types of data makes it possible to detect weak signals, emerging trends or recurring problems that might otherwise go unnoticed. By exploiting this information, companies can not only improve existing logistics processes, but also innovate by developing new services or personalizing the experience to better meet customer expectations.

Last words

On-site logistics is an excellent vehicle for enhancing the customer experience, thanks to efficient management of flows and stocks. By integrating a deep understanding of customer needs, based on the analysis of structured and unstructured data, on-site logistics is an excellent vehicle for enhancing the customer experience, thanks to efficient management of flows and stocks.

In this context, platforms like Feedier have become valuable tools. They facilitate access to customer intelligence for operational teams through automated reports, thereby helping companies make informed, customer-centric decisions. This type of technology is fundamental for strengthening competitiveness and customer loyalty in an ever-evolving market.

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