Like many other phases in a business’s supply chain, you always need to be looking for ways to improve your logistics, and ensuring that it’s running with maximum efficiency. Unfortunately, there isn’t a one-size-fits-all strategy for optimising logistics; that would be too easy! However, there are a few proven strategies which you may want to adopt if you’re concerned about your logistics. In this post, we’ll go through some of those strategies. Better logistics efficiency will improve customer experience, and give you an edge over your closest competitors.
Whenever you’re trying to improve your logistics, the first thing you should look at is your transportation costs. If the cost of transportation increases, everything else does too. Efficiency requires investment, and minimising these costs is absolutely imperative to that. There are many ways you can reduce the cost of transportation, depending on your business model and company nuances. Using smaller packaging, and improving productivity in your packing process is one of the simpler methods. Optimising the weight and size of packages may not sound like much, but all those little savings certainly add up. You may also want to try using more energy efficient vehicles, and saving on the cost of fuel. Even looking for alternative delivery routes to regular customers can have a big impact on your efficiency. Making all of these changes is going to be fairly impractical, so look at the weaknesses in your current transportation system and prioritise them.
Maximising your warehouse space could be another great way to maximise your logistics efficiency. Warehouse space is a very common issue faced by countless businesses, yet very few managers actually take steps to fix it. when you divide and use your warehouse space properly, you’ll be able to save a substantial amount of capital, especially if you realise you’ve been sitting on a load of stock that’s doing nothing but sitting there. Part of maximising your warehouse space is making sure your stock is in the right place, and minimising the steps in all processes. It certainly doesn’t stop there though! You also need to keep monitoring the warehouse, observe which stock is selling, which isn’t, and why. Just because one of your products is extremely popular now doesn’t mean that it will be in a few months’ time. If you’ve ever worked in the clothing industry, then you’ll know this better than anyone! When you keep close tabs on what and when your company is selling, it makes it much easier to assign warehouse space according to stock.
One of the most important things you can do to maximise your logistics efficiency is knowing when to outsource. If you’re running an ecommerce business, then you’ll know how important it is that orders reach your clients on time. However, if you’re straining all your resources to keep up with your schedule, then other important aspects of your business can end up taking a back seat. If you spend all your time fulfilling orders and none of it keeping your marketing campaigns strong and current, then your business is certainly going to suffer. It’s no good having a streamlined supply chain if you haven’t got any customers buying from you! Meticulous timing will make your clients confident in your brand, but that’s only one part of the game. Neglect this enough, and your efficiency will go downhill. This is why it’s so important to know when to do the job yourself and when to pay for a pick and pack service.
Taking advantage of some logistics management software is another effective method for improving your efficiency. This kind of tech ensures that there’s good communication between your warehouse and your accounting department, ensuring that you keep the supply chain moving and don’t run into any major hiccups. If you’re not exactly the techy guy in your office, then the prospect of adopting all kinds of new, automated software can be a little daunting. Once you get used to it though, logistics management tech will streamline all of your logistical processes from beginning to end, keep your employees focussed on targets, and your customers well-informed. Aside from all that, logistics management software is a very lucrative trade in itself these days. It’s fairly likely your competitors are already reaping all of its benefits. I’m sure you don’t want to leave it all to them!
Follow these steps, and you’re sure to see your logistics swiftly becoming more efficient. Once you’ve made these changes, keep on measuring and improving processes wherever possible.