Logistics management is the backbone of any business since it ensures that shipping, delivery and supply chain management work as efficiently as possible. For businesses that want to overtake competition, improving the logistics management process is the first step toward increasing operational efficiency and productivity.
There’s always room for improvement in any aspect of a business, especially logistics, and using resources efficiently is more than half the game!
Here are five tips that will help you optimize your logistics management:
Focus on order-to-delivery lead time and plan accordingly
Customer satisfaction is the end goal of any logistics chain since it affects how your company is viewed. The time it takes from order placement to delivery is one of the most crucial aspects of the customer experience and the primary deciding factor in their opinion of your company. It doesn’t matter how well you handle every other aspect of your business operations if your customer’s opinion is affected by long lead times in order fulfillment. Since a number of departments and staff members are involved, improving lead times may require you to deal with the order fulfillment process as a whole.
Evaluate and redefine your standard operating procedures
To minimize production inefficiencies and help your entire team work as a cohesive unit, implement some changes to your SOPs. This is not as much of a challenge as it may seem since a few small steps can yield big results. Focus on improving the information flow across the logistics chain and go on from there. Implement a double-checking system to reduce human error and duplicate shipments, print and display key policy terminology across the facility, use analytics reports to share market behavior and sales flow trends with your team on a daily, weekly and monthly basis, and make sure people are clear about their roles and responsibilities.
Examine transportation and redesign for cost/time efficiencies
Transportation is often the largest expense in logistics, especially if it isn’t planned and implemented properly. It also has a major effect on delivery timeframes and return on investment, especially if goods are damaged in transit. No matter the industry, a rise in transportation costs generally translates to a rise in goods prices.
Analyze every aspect of your transportation process to determine where expenses are highest. Start with the delivery route and load planning, picking the shortest and safest route and using truck scales to ensure vehicles carry full loads. Product packaging should also be designed to minimize size and weight without compromising on security.
Optimize warehouse management for maximum productivity
Proper warehouse management is an essential aspect of any logistics process since it affects everything from lead time to inventory management and even product quality. Effective warehousing operations are largely defined by the type of product (perishable or non-perishable, what kind of environment it requires, etc.).
Regardless of the goods being stored, certain improvements can help you reduce wastage and speed up operations. For instance, you can maximize storage space by using vertical columns and implement industrial weighing scales as part of your material handling equipment to help warehouse staff weigh goods faster and more accurately.
Embrace automation and make the most of new technologies
The last few years have been truly exciting in terms of technological innovation, especially automation in business logistics. Modern tools and systems are designed to speed up organization efficiency and lead times by reducing manual interference and eliminating human error. So now is the time to adopt them. From smart weighing scales that integrate with warehouse management systems and track inventory to business process and communication software that provides real-time updates for any aspect of goods movement, there’s a customized solution for practically any logistics challenge you might face today.
Logistics management can be a complex and time-consuming process but the right tools make it easier and more profitable too!
