This article is a great example of how short lead times increase customer service. Companies are continuously striving to improve delivery time. Amazon has an excellent logistics system and is able to get goods to the consumer in less than one day. The value of this service is high in this market. Amazon stated that they are improving these quick delivery services as a response to consumer needs. Now, customers can receive their goods the next morning if they order at night. Before this, customers had to wait to receive their goods the next afternoon. After analyzing their consumer’s behaviors, Amazon recognized that many people were placing their order at night, requesting same day delivery, and then having to wait till the next day to receive the “same day” service. This improvement will likely encourage other companies to decrease lead times in order to be more competitive.
By: Reagan Howard
Source: Post and Parcel