No matter what the business is, logistics is crucial. A company that gets thevlogistics wrong and runs an inefficient supply chain will undoubtedly be less profitablevthat their competitors. Poor resource management usually this means that the final product isinferior when compared with their rivals. As pointed out in this article published by the Harvard Business Review, businesses need to explain where their supplies come from, and they also need to stick to rigid standards. Having solid logistics is the best way to do just this – otherwise, they are at risk of losing customers’ trust and, of course, orders.
In addition to this, a company that does not have a robust and practical logistics process will find it difficult to compete on price. Inefficiencies in supply and delivery chains lead to lost productivity and higher than necessary overheads.For example, a business with a poor control of stock levels and movements will inevitably need to pay for more warehouse space than they really need.
Run a flexible business fleet
When it comes to transporting goods, completely filling the vehicle or cube is vital for business success. Not doing so costs businesses millions and is very bad for the planet. In addition, when your trucks and vans are only three quarters full, you end up paying for more vehicles than you actually need – if you can’t fill your vans, it’s likely a sign that you should downsize.
Hiring the right type of van driver will help you avoid this..You might also consider investing in a range of different sizes ofvehicles can also help, as you have more flexibility in how you transport your goods and stock. . With a diverse fleet, you have the option to use a smaller trailer if there aren’t enough orders to fill a larger van, and this is cheaper to run overall.
This approach is not suitable for all firms. However, it is certainly worth investigating the option and seeing if diversifying your fleet will benefit your company.
Take advantage of new technology
The only way to stay as efficient as your competitors is to keep pace with them, and when possible, get ahead of them. This means that you need to take advantage of new technology as it becomes available.
Automating the movement of goods through a warehouse requires a big upfront investment. However, over time, that kind of equipment will more than pay for itself. Automation eliminated human error and speeds up the pace at which goods can be moved from point A to point B.
Constantly review your processes
When it comes to logistics, it is very important to constantly review and measure your processes. Reviewing and measuring the efficiency of each step will help you to monitor costs and to find and deal with weaknesses in your systems and processes.
Most important of all is planning ahead. Being ready for seasonal changes in supply and demand or for promotions is second nature for most companies. However, it also makes sense to have outline plans in place for when there are unexpected fluctuations in workload. Knowing where to look for additional kit and vehicles should a new product line suddenly fly off the shelves will ensure that you can move fast enough to take advantage of that business opportunity.
Logistics is important. It is those firms who get their logistics right that are the ones that grow fast and make the biggest profits.
Posted by: BusinessVibes
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