Over 56% of companies say they have spent a “significant amount of time and resources” dedicated to improving their company’s supply chain. The supply chain includes transportation companies, shipping companies, receiving/storage, and management of each of these areas. If these areas are correctly managed it increases efficiency, sales, customer satisfaction, and more, all while decreasing costs.
With this in mind, here are some key ways someone can make sure they are on the right track.
An effective logistics management strategy requires an extensive analysis of every part of the supply chain. Do you want a lean and efficient supply chain? Are your distribution centers in the best location? In a recent study done by Freight Waves, a majority of shipping companies said that their main supply chain goal is to locate a distribution warehouse closer to the consumer.
The less decisions that are made in the moment the better. Develop a flow chart of every aspect of the process. Find if there are any delays or areas that can be improved. Include aspects like the allocation of goods, storage, and final delivery.
There will come a time when your primary plan needs to be shifted a bit. When this happens, it’s good to be prepared. Operations may get delayed because of factors like inventory management. Visibility is highly valued in the industry, but there are times like today where bottlenecks occur because of product shortages. Logistics managers need to have an extensive network with which to obtain products or services in these cases.
The right logistics manager has great interpersonal skills. They establish strong connections to develop a network of industry contacts. They need strong leadership skills and a good financial IQ. They also need to use the right technology to increase supply chain efficiency. Software today can measure a lot to improve the success of any logistics endeavor. It can track fleets, inventory, warehouse processes, and more! Centralized information and real-time feedback is really the main necessity for a logistics manager.