The more complex your supply chain, the more necessary it is to optimize logistics. As problems arise, it falls upon you to resolve them. Active monitoring and involvement in your logistics will make finding a solution easier.
Here are the steps you can take to manage business logistics.
Define Your Priority
You may want the fastest delivery times, a certain type of packaging for products, have certain expectations around order fulfillment, want to be the lowest-cost provider or have another goal for your overall logistics. Define what’s meaningful to you because this will clarify how you optimize.
Hire a Logistics Expert
There is a lot to consider in logistics. An expert can tell you how to manage and improve logistics transportation, inbound and outbound logistics, import and export, shipping and receiving, warehousing, inventory management, product purchasing, and production planning.
Hire a Logistics Provider
A third party logistics provider allows you to grow quickly without worrying about logistics management. They handle everything. They know the best practices and optimizations you need to keep you, your partners, and your customers happy.
Look at the Competition
Take cues from your competition. See how they manage their logistics systems. Gather and adapt ideas from them to help you manage your supply chain.
Have Contingency Plans in Place
Have a plan for handling significant issues as they arise. Contingency plans can be relied upon in a panic when an issue presents and you need a fast response.
Monitor Customer Demand
Demand is inconsistent year-round. Customer demand for products rises and falls seasonally. When you monitor product demand, you can better manage inventory costs and know when to scale up or down accordingly.
Leverage Analytics Software
Logistics generates a lot of data every day. Use that to your advantage. Evaluate it with logistics software. Many apps and programs can even help you manage your business logistics in real-time with inventory tracking and barcode scanning assets.
Embrace Automation
Automation in logistics saves costs and increases efficiencies at every level of the supply chain. Automation can also aid in data collection and analysis, bringing together multiple resources to produce reports and recommendations on various aspects of logistics.
Optimize Your Warehouse Space
Look at ways to manage your warehouse space, including temporary storage of bulk items, inventory tracking, security and insurance, and more. Compare and contrast service and storage fees to find a competitive rate.
Pay Attention to Order Fulfillment
While a warehouse is for storage, an order fulfillment or distribution center must move quickly to fulfill orders. They must pick up the product, pack it, and ship it. A partially automated order fulfillment system is necessary.
Fine-Tune Import/Export
Importing and exporting materials and products can cause major headaches. Logistics managers must develop an approach to import/export based on collaborating with freight forwarders, customs compliance, and transport partners.
Consider a Freight Forwarder
Freight forwarding services are your intermediary between import and export shipping. They arrange customs clearance and storage for shipping. This can significantly help optimize import/export if you haven’t done this type of work before.
Make Sure There’s Active Communication
Ensure key managers regularly communicate with staff. Have positive, open relationships with suppliers and vendors. Directly communicate with those involved in your logistics chain, making them aware of critical information and improving morale.
Keep Customers Informed
Excellent customer service is essential in business logistics. Ensure customers are informed of where their purchase is, through confirmation emails and tracking numbers. Send them updates on their delivery status and alleviate anxiety about not knowing where it is.
Lower Costs Wherever Possible
Inflation. Cost of fuel. Escalating wage pressures. These are just a few of the factors influencing rising costs. Every month, evaluate where you stand with costs and search for ways to lower them or avoid increases.
Negotiate the Best Shipping Fees
A business that ships quite a bit can often nab volume discounts on shipping, which helps to keep costs reasonable. Always negotiate the best shipping rates possible, comparing different shippers according to what each offers in terms of rates and terms.
Optimize Transport Routes
Where warehouses and shipping companies are located and the logistics partners you choose will determine your transport routes. Minimize distances and costs as best as you can.
Consider Your Trucking Fleet
Long-haul 18-wheel trucks are ideal for carrying products over 250 miles or more. Many companies, however, rely on smaller trucks for shorter distances. Consider the fuel efficiency of your fleet and what changes, if any, need to be made.