In supply chain management, a combination of an efficient workforce, automation of particular workflows, and perfect coordination between various functions is critical to a smooth functioning supply chain.
Above all, there is always room for improvement and boosting business. Each time your business witnesses growth, the key is to proactively look for ways to improve the output by leveraging the resources at hand.
This article looks at some crucial tips that can enable you to manage your logistics more effectively.
Here’s a list of essential tips for logistics management and resource optimisation:
The first step towards boosting efficiency is planning well. Planning is an umbrella term encompassing multiple factors such as procuring the goods, managing storage facilities, prompt delivery of the cargo to the right destination, etc.
The other crucial factor is the cost involved in carrying out all the processes. A good starting point to plan well is chalk out a detailed flow chart of your end-to-end supply chain operations. The goal of proper planning is to get more work done in the least possible time while simultaneously, driving cost savings and maximising profits.
When we speak of prompt planning, it can be regarding a product, an unprecedented situation, an internal disruption or a disruption caused by external factors such as last moment cancellation of an order, natural disasters and the like.
It’s best to have an emergency plan at hand, which can be executed efficiently in times of distress.
Automation technology has transformed how supply chain management operates and is an excellent enabler of supply chain efficiency. These solutions can play a vital role in driving process optimization. Today, several logistics management software that automate multiple workflows have been developed and are widely used.
For instance, these systems can provide automated updates on your cargo’s movement, negotiation rates for you and highlight errors in your operations through advanced analytics.
The software can notify you when goods are dispatched from your storage facility, they attain important journey milestones, face a delay due to some disruption and much more.
This eliminates the need for manual interference and saves a great deal of time and effort while assuring accuracy.
Similarly, logistics resource management software facilitates a well-integrated supply chain, which means that every party involved in your operation can access the same set of information at all times from anywhere. These are just some of the many reasons that companies are actively embracing automation technology-based platforms.
Your team is an integral part of your organisation’s growth. It’s the quality of service of every person involved in your supply chain that will ultimately determine your business’s efficiency.
It is imperative that you proactively invest in employee engagement and training. Training workshops at regular intervals can be a great way to keep your employees updated with everything within your organisation and the industry. Remember that you can attain exceptional customer service only via a well-trained and efficient workforce.
Logistics managers with dynamic personality can go a long way in ensuring efficiency for your business through the thick and thin. There are times and situations where all your business needs is a person who can stay calm and make informed decisions. So, invest in developing such employees.
Warehouse facility management:
Effective warehouse management is critical to efficient logistics management. The intricacies in your warehouse management naturally will depend on the nature of your goods.
For instance, perishable goods will have special requirements such as dairy products that may need refrigeration facilities, and food grains will require a moisture-free environment.
A right approach will be to plan your production cycle well so that you have just the right amount of inventory at the right time with minimum wastage of warehouse space.
An important goal is to maximise the storage capacity of your warehouse facility. You can even employ software to optimise space utilisation by sequencing the products well. It will also make it easier to locate goods and minimise the time and effort involved in the process.
To cut down on logistics costs and increase profitability, you can analyse your transportation expenses. You can consider revamping your systems and processes to make transportation faster and more cost-effective. Here are some factors that can be considered for enabling efficient transportation:
- Route optimization that is determining the best and shortest route possible for each shipment. This will help save time and money.
- Proper packaging that allows you to keep the costs low while maintaining the quality of service. Packaging can be optimised in a way that it occupies minimum space and keeps the weight low.
Measure your performance:
It’s crucial to put a number on certain things. You cannot measure or improve your logistics operations’ efficiency without analysing relevant numbers and considering feedback. Every time you adopt a new solution or approach, it’s vital that you effectively measure the results. This is the only way you would know whether a strategy has worked or not worked for you and to what extent.
Your future business goals heavily depend on your ability to measure your performance in the present. So, it is worth investing in a solution that automatically tracks the performance of various aspects of your supply chain and dies the number crunching for you.
Metrics such as which vendors offer you the best rates, which carrier provides the most reliable service, etc. can be tracked. It is only with these measurements and feedback that you can make improvements. Continuously generating new ideas and seeking inputs on the systems in place can help reveal loopholes and uncover hidden opportunities as well!
To trump over your competitors, you must keep evolving with the industry and leverage the latest technological advancements. While the list of suggestions we have seen in this piece may not be exhaustive, they’re a good starting point for building an efficient supply chain.
The ultimate aim of effective supply chain management is to drive savings and profitability while ensuring exceptional customer satisfaction.
If you wish to learn more about how GoComet’s innovative automation technology can help you implement a cost-effective and agile supply chain, reach us here.