When you look at the big picture, logistics is what keeps the global economy moving and upholds a status quo we’ve all become used to. However, because a lot of modern businesses are so deeply entrenched in their supply chains, making improvements in your logistics can be a slow and gruelling process. Having said that, maintaining a state of constant improvement will benefit both you and your suppliers, and help you keep up a competitive edge. Here are a handful of tips on improving your logistics strategy.
The tip which I’d say the highest number of business owners need to take on board is to look at their communication technologies, perform a complete overhaul, and automate as much as possible. By automating all your communications, going wireless wherever possible, and getting rid of the need for manual reports, you’ll be able to reduce your costs dramatically. The aim here is to minimise the time it takes for the various areas of your supply chain to communicate with one another. When you achieve this, everything from start to finish becomes seamless, and your staffing requirements should be much laxer. Your customers will also have a better experience by receiving real-time updates.
Next, try to utilise your predicted volumes as a way to cut down prices. When you dig deep
enough into your transportation volumes, it becomes easy to see where you’re spending too much due to supply loads not being as efficient as they could be. Let’s say a company was making shipments of hydraulic hoses, and some bad habits in the packing process were causing unnecessary and expensive delays. Perhaps a delivery route that’s currently in use is taking too long and causing unnecessary costs in petrol. Take a good look at every last phase of your supply chain, make sure that the supply vehicles you’re using are always holding full loads, and that you’re always using the most cost-effective shipping methods at your disposal.
Finally, try to look at all your logistics processes from the customer’s point of view. Without your customer base, your business would cease to exist. Therefore, a strong focus on customer satisfaction should be a central point to you overhauling your logistics strategy. Sure, you might be able to make the order-to-delivery time shorter than it’s ever been. However, if you’re shipping the wrong thing, or the right thing in the wrong volume, none of it will matter. You will have failed in the one thing your business is there to do; fulfil the customer’s order. Make sure that all your existing workflows are changed with the end goal of improving the customer’s experience. It takes far more expenditure to source new clients than it does to retain your existing ones. Tailor your new logistics strategy around greater customer satisfaction. This will improve the reputation of your business and promote more word-of-mouth referrals.
If you were worried about your logistics, I hope this has helped. Follow these steps, and soon you’ll have a logistics strategy in place which is seamlessly efficient.