When you talk business with Markku Sauvala, Sales Director of the Helsinki based freight forwarder ProStarLog, the key word that will come soon into the discussion is « trust »: the trust customers are putting into your ability to deliver, the trust you put into your business partners they will keep their their promises, trust that your own organization will be able to fulfill its commitments no matter what happens.
Lack of visibility is a challenging issue
Building trust takes time and can be destroyed quickly. This is especially true in the freight forwarding business, where your customers expect you to take care of their shipments and deliver them at the right time, at the right place. As an experienced freight forwarder, Markku relies on a network of transporters and subcontractors to deliver the best service to its customers at an optimal cost. The fact that he doesn’t have full control of what happens down the supply chain can be stressful for him as for his customers.
His customers expect a high level of information reliability but with current track and trace systems not being integrated between supply chain players and only delivering visibility at waypoints, it’s a real challenge. This lack of visibility is source of inefficiencies and costs. This is especially the case when something gets wrong and Markku’s collaborators have to take time phoning and emailing around to find out what is actually happening with the shipments.
ProStarLog is a Helsinki based freight forwarder, specialized in cargo consolidation and groupage transportation.
Their services include regular groupage transportation to Russia, international freight forwarding, import, export, transit customs clearance, terminal handling, warehousing and global real-time cargo tracking
Markku was looking for a way to get full visibility over the whole delivery chain across multiple countries, logistics partners and means of transport. The competition in the freight forwarding industry and the pressure on costs are high. It is therefore essential for ProStarLog to differentiate, without having to carry large, risky investments.
ProStarLog uses Kizy to keep track of valuable shipments like phamaceutical products or consumer electronics travelling from China to Europe across Russia. When the goods are handed over to them, they add a tracker inside each pallet. From this moment on, they can keep track of the shipment and get notified immediately if it is being opened, delayed or misrouted. Once the goods reach the final destination, the customer sends the tracker back to ProStarLog using a standard envelope. Markku can then re-use the tracker for the next shipment.
“With Kizy we always benefit from the same level of end-to-end supply chain visibility, no matter with which transporter we actually work.”Markku Sauvala
ProStarLog improves his service quality and reduces his costs
From day one, ProStarLog was able to benefit from a complete visibility over the whole supply chain, across countries, providers and means of transportation. The data provided by Kizy helps Markku to answer the questions asked by his customers in record time. Further more, it enables him to collaborate with his partners based on clear measures and indicators to evaluate the service quality. « This participates in building a strong relationship, because we now have objective, independent data to evaluate our partenrs and it serves as a basis for joint operational improvements. »
“With Kizy, we always benefit from the same level of information and end-to-end visibility, no matter with which transporter we work. We keep the hand on the data and can react quickly if something happens, thus minimizing costs and consequences for our customers.» adds Markku.
By implementing Kizy systematically, ProStarLog was able to reduce the handling time for customers requests by 50% and saw a 20% increase in the customers’ retention rate. « Answering simple questions like « where is my shipment ? » has never been so easy. It brings so much value.» concludes Markku.
Increased customer retention