Every successful company requires a few things. These include talented human capital, good ideas, and high quality logistics. If your company is running through the motions when it comes to the latter, you may want to rethink your operations. You should have particular logistics goals and understand why things operate the way they do.
The Four Key Goals
Effective and productive supply chains are able to narrow their supply chain focus down to a few simple goals. For most companies, these goals should be increased efficiency, increased sales, better relationships, and improved customer service.
Increased Efficiency. Increased efficiency reduces inventory and total overhead, while developing cost-effective transportation rates. All facets of the company should work well together, with the warehouse, transporters, and executive team sharing issues, opportunities, and ideas. While many companies focus their energy on internal logistics (warehouse), it’s important to remember transportation as a crucial piece of the puzzle. Efficient transportation enables you to gain control of inbound and outbound logistics.
- Increased Sales. Increased sales are, of course, a major goal of inbound and outbound logistics. By keeping products in stock, delivering shipments on time, and efficiently moving products through the warehouse, you can avoid losing sales and capitalize on existing orders.
- Better Relationships. Because the transportation of goods is one of the last interactions a retailer has with a supplier, it’s important to focus on relationships. By hiring drivers with good interaction skills, you can better ensure a positive business relationship will result between your company and your clients.
- Improved Customer Service. Going hand in hand with the idea of better relationships through healthy interactions is a focus on customer service. Whether dealing with inbound or outbound logistics, satisfying customers should be at the heart of everything you do.
According to one source, logistics should aim to fulfill four basic requirements: order fulfillment, delivery fulfillment, quality fulfillment, and cost fulfillment. Each of these is satisfied by dedicating time and training to purchase order processing, stock management, and transportation.
Tips for Improving Logistics Management
If you are truly serious about increasing efficiency, increasing sales, bettering relationships, and improving customer service, it’s important to establish specific rules and implement tangible advice. Here are a few tips for improving logistics management:
- Maintain accurate and current rate profiles for all carriers you may use. This data enables you to develop close estimates when quoting a potential order. It also saves the time of having to search for rates and compare prices every time an order is placed.
- If you have the resources to do so, reduce your inventory and use historical company figures to accurately forecast product demand.
- Find a supply chain management or transportation management software to aid your processes.
At GTG Technology, we offer transportation management software solutions geared towards helping you improve efficiency and building healthy business relationships. Through our intermodal management system, brokerage management system, and drayage management system, we do everything in our power to make business easier for you. Contact us today for more information!