Logistics is one of the major and very important business services offered globally. Adam Robinson of Cerasis penned five pointers that will present the best insights meant to help any owner or manager running a logistics business. Here are proven strategies that can turn your organization into a success.
The first step to completing any task is always solid planning. Planning in logistics consists of several factors such as attaining the goods, storage facilities and delivery of products to the exact location. Other features to focus on too are time, transportation and costs. A logistics operation manager needs to be able to draw up a proper flowchart that showcases the whole operation. The main intention of planning is to achieve maximum work in the least possible time. Proper planning is an important step to implement and enables a manager to be able to prepare for unexpected circumstances and problems that may arise. These issues may range from complications with the products, the unavailability of transportation, to internal matters within the business.
Have a Contingency Plan, Too
Following the previous point of having a plan in place, one can still never be able to prepare for every possible eventuality or contingency. After devising a plan, a good logistics manager knows to then follow the supply chain at every point and to do damage control for any problems that may come up. To do this properly, there should be contingencies for every element of your logistics plan. As Murphy’s Law states – “If something can go wrong, it will”. For example, depending on only one supplier or vendor is not advisable and the smart way to do it is to have a broad network of vendors for the products and services that you will need. You should be able to deduce when to keep to the original plan and when to switch to your backup plan. This is something that comes with time and experience.
Cultivate Strong Relationships
Logistics supervisors are aware that their entire operation is only as reliable as the weakest link in the supply chain. It takes a lot for them to create and form healthy and honest relationships with vendors and suppliers so that the goodwill that they earn keeps their operations moving smoothly. One relationship that isn’t solid is enough to spoil the entire supply chain and lead to failure. The team is an integral part of the organization and is responsible for the growth. All members should know their role and what’s expected of them – from the delivery man to the warehouse manager. For this to take place, there needs to be ethical training of the employees along with regular training workshops that update workers on the latest trends in the logistics industry. This aids in the satisfaction of the clients and enhanced efficiency.
Speaking about efficiency, that is one important factor when it comes to transportation too. The transportation department can be analyzed to decrease the expenses of the logistics business and on the other hand, be renewed for faster delivery of products. For transportation to be run in a competent manner, a logistics organization manager needs to determine the optimal delivery route. The shortest yet safest ways should earn first preference, and this is beneficial for cost saving as well. Additionally, selecting to go with cost-effective packaging guarantees low investment and safety of goods as well. Packaging can be optimized by use of a variety of tools such as genuine adhesive and sew on tapes in order for the freight to occupy less volume and also does not add on to the weight of the package.
Analysis and Improvisation
Any logistics network optimization conducted without integrating measurement, interpretation, review and feedbacks is insufficient. When you use new strategies in the system, you need to measure their output. This is important as it reveals the success or failure of the plan. Measurement tools and software should be combined to efficiently determine and coordinate the information as per the requirement. Planning done in the future will be heavily dependant on the measured data. The ideas and suggestions of your employees should be recorded periodically as generous feedback also assists in improvising. This ensures that you generate a wealth of ideas while also making known any defects or imperfections in the system if there are any.
Are you in line so far with the logistics trends to adopt this year? If not, familiarize yourself with our Logistics Management Blueprint: Top Logistics Trends To Embrace In 2018!