Level 3 Transport and Logistics BTEC

This subject is broken down into 46 topics in 9 modules:

  1. The Business Environment 5 topics
  2. Health, Safety and Security in Transport and Logistics 6 topics
  3. Transport and Distribution Planning 5 topics
  4. Supply Chain Management 5 topics
  5. Customer Service in Transport and Logistics 5 topics
  6. Warehousing and Storage Systems 5 topics
  7. Freight Transport Operations 5 topics
  8. International Logistics 5 topics
  9. Sustainable and Green Logistics 5 topics
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  • 9
    modules
  • 46
    topics
  • 17,966
    words of revision content
  • 2+
    hours of audio lessons

This page was last modified on 28 September 2024.

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Transport and Logistics

The Business Environment

Types of businesses, their objectives, and legal structures

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Types of businesses, their objectives, and legal structures

Types of Businesses

  • Sole Traders: These are businesses owned and managed by one person. They keep all business profits after tax but are also personally liable for all business losses and debts.
  • Partnerships: Include two or more owners who share the profits, losses, and responsibility of running the business. Each partner is liable for the business's debts.
  • Private Limited Companies (Ltd): These are separate legal entities from the owners. They're owned by shareholders who invest capital for a return, usually dividends. Shareholders have limited liability.
  • Public Limited Companies (Plc): Similar to Ltd companies, but shares can be traded on the stock exchange. This allows for larger amounts of capital to be raised, but shareholder pressure can impact decision making.
  • Cooperatives: Owned and run by their members who have equal voting rights. Profits are often shared amongst the members.
  • Franchises: A type of business where a successful business model is duplicated by a franchisee who pays fees or a percentage of profits to the original business owner (franchisor).

Business Objectives

  • Profit Maximisation: The goal of maximising the difference between total revenue and total costs.
  • Sales Maximisation: The aim to sell as many units of a product or service as possible, without making a loss.
  • Survival: A short-term objective for new businesses or those facing tough competition.
  • Increasing Market Share: Achieving greater sales than competitors in the same market.
  • Social and Ethical Objectives: Environmental sustainability, ethical sourcing, charitable giving, and social responsibility can all be business objectives.

Legal Structures

  • Sole Trader: The owner and the business are legally the same entity. The owner is personally responsible for all business debts.
  • Partnership: As with sole traders, partners are personally liable for business debts, but this liability is shared between them.
  • Limited Liability Partnership (LLP): A hybrid structure offering limited liability to partners and flexibility in internal structure.
  • Private Limited Company (Ltd): Owners have limited liability, and the business's finances are separated from personal finances. Shareholders can only sell shares privately.
  • Public Limited Company (Plc): Shares can be sold to the public, allowing for larger capital raising, but at a greater regulatory scrutiny.
  • Social Enterprises and NGOs: Legally structured in various ways. Income is used for a social or public purpose.

Course material for Transport and Logistics, module The Business Environment, topic Types of businesses, their objectives, and legal structures

Transport and Logistics

Customer Service in Transport and Logistics

External and internal customers/users

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External and internal customers/users

Understanding External and Internal Customers

External customers are the individuals or businesses that purchase or receive a service from a company.

  • These customers are typically not part of the organisation and are the ones the services are branded towards.
  • They have chosen to use the company's transport or logistics services for a specific need or requirement.
  • The satisfaction of these customers directly affects the profit and reputation of the company.

Internal customers are individuals or departments within the company who receive services from other individuals or departments.

  • They can include employees who rely on information or resources from another individual or department to perform their jobs.
  • The efficiency and effectiveness of services provided to internal customers can significantly impact the company's operation and ultimately the service provided to external customers.
  • It’s important to ensure clear communication and understanding between departments to satisfy internal customers.

Importance of Customer Service to Both Customer Types

Good customer service plays a key role in meeting the needs of both internal and external customers.

  • For external customers, good customer service can drive loyalty and repeat business. It can also enhance the company's reputation and attract new customers.
  • For internal customers, good customer service helps in maintaining efficient and smooth operations, thus reducing potential delays or misunderstandings.
  • Meeting the needs of internal customers can have a direct impact on the service experienced by external customers.

Managing Relationships with Internal and External Customers

Regular interaction, feedback, and good communication are essential in managing relationships with both internal and external customers.

  • For external customers, this might be through customer surveys, regular updates on service changes, quick response to enquiries or complaints.
  • For internal customers, this might be through regular team meetings, internal feedback channels, or cross-departmental collaboration initiatives.

The Role of Transport and Logistics in Satisfying Customers

Transport and logistics play a vital part in ensuring both types of customers are satisfied.

  • The prompt and safe delivery of goods, clear communication, and dealing effectively with issues are key to satisfying external customers.
  • For internal customers, providing accurate details and updates, ensuring required resources are available, and collaborating to solve issues can all lead to satisfaction.
  • The performance of the transport and logistics team can directly impact the satisfaction levels of both types of customers.

Course material for Transport and Logistics, module Customer Service in Transport and Logistics, topic External and internal customers/users

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