Improving logistics in your company is a vital part of its health in operations.
Without a doubt, when you improve logistics processes, you will always get a positive effect in the long, medium, and short run.
To help you, Looper compiled the following tips on improving your company’s logistics.
1. Develop A Methodology
Usually, companies develop processes as they go. However, this is a risky and unsustainable practice.
To improve logistics in your company, you require long-term thinking.
In that sense, you need to document your processes to ensure the sustainability of operations. By doing it, you will develop a system that can be easily managed and improved.
On the other hand, there are free methodologies to improve logistics in your company.
You don’t have to reinvent the wheel.
2. Automation To Improve Logistics In Your Company
In general, most companies have manual tasks that could easily be automated.
In doing so, they reduce time and costs. Also, your staff can work on more relevant tasks.
To identify these tasks, document your systems and map your processes. Then, you will see exactly what can be automated to improve logistics in your company.
Remember, someone else already solved any problem you got, and someone is the solution.
3. Frequently Monitoring Your Processes
For better accuracy, check your logistics data every quarter. To improve logistics in your company, you need to identify negative and positive patterns.
For the latter, document the good practices and try them in the following periods.
On the other hand, you could prevent and correct any negative pattern on time.
4 Using Data To Improve Logistics In Your Company
If you are new, take a look at sales information about your competition or the industry in general.
However, if you have at least one year of operations, you could plan with your current data. Also, make sure to inform your providers of your strategy.
In doing so, they can also plan to satisfy your demand on time.
5. Build Strategic Alliances With Logistic Companies
Essentially, strategic alliances are a great way to improve logistics in your company, regardless of its size.
Having an ally beats is better than a contractor or supplier.
To illustrate, remember that Ford built a train station in its factory to facilitate loading the cards in the train.
Look for win-win alliances for the medium run.
6. Reduce Information Bottle Necks
Working with allies implies decentralizing certain information. Of course, this is recommended as long as it keeps your operations safe.
For example, it could be useful if your suppliers could monitor your stock levels. With that, they could guarantee their capacity to satisfy your demand on time.
Also, by giving them time to prepare, you could negotiate some discounts or other benefits.
7. Reevaluate Your Suppliers
In summary, it is recommended that your suppliers have the following characteristics:
- Good communication
However, you are the one who defines what each one of them means for your company. With that, you can identify which providers will help you improve logistics in your company while matching your needs and values.
Although time-consuming, the return of investment and peace of mind is worth it.
8. Improve Logistics In Your Company With The Best Options
To illustrate, sometimes a supplier could be using a more expensive logistics company than the one you use. In that case, you could negotiate with your supplier.
Also, if you already have a logistics alliance, you could incorporate it with your supplier.
By analyzing all of your logistics systems, you will identify the best options for each part of the system.
9. Reconsider Your Logistics And Sales Models
In every field, it is vital to question our logistics and sales models.
Sometimes, it is better to specialize and experiment with one model to improve logistics in your company.
For example, if you do B2B, it is advisable to focus on wholesale. By doing so, you specialize your processes and improve your return on investment.
Remember to document everything to measure results.
10. Always Have A Plan B
Without a doubt, your logistics supplier will face issues from time to time.
Because of that, it is valid and necessary to count on alternatives to keep your supply chain going.
With that in mind, finding backup suppliers will improve logistics in your company in case of an emergency.
11. Offer Many Different Logistics Options To Your Clients
As a rule, it is said that the more options you offer, the more difficult it is for a client to decide. It is a rule because it tends to be true.
However, that phrase does not necessarily apply to logistics. By offering different shipping options, you build trust and a better purchase experience.
From a strategy to an operations perspective, improving logistics in your company is always the right decision.
Remember, it is important to go for the reliability and sustainability of processes and logistics suppliers.
You can always improve, regardless of the size of your company.
Click here to discover how Looper can help you improve logistics in your company.