5 Ways to Improve Logistics in 2022

Logistics, according to Investopedia, refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics is the backbone of business operations since it ensures that procurement, shipping, and supply chain processes work efficiently.

People, Facilities, and Supplies

Logistics involves detailed coordination of a complex operation involving people, facilities, and supplies. Logistics management activities include inbound and outbound processes that coordinate transportation, fleet scheduling, warehousing, materials handling, order fulfillment, inventory control, and supply/demand planning.

Business managers seeking to analyze and streamline their operations to work more efficiently often overlook costs directly associated with logistics management. For example, they assume shipment, clearance, and warehouse fees are fixed expenses, but this is far from the truth. Logistics management helps companies understand where their products, supplies, and other resources are. This vital component of business operations builds better customer relationships, reduces the need for excess inventory, and improves reliability to drive down costs across the supply chain. Improving logistics management by deploying resources more efficiently is more than half the game.

HERE ARE FIVE WAYS YOUR ORGANIZATION CAN IMPROVE LOGISTICS MANAGEMENT:

Optimize Warehouse Management

Some businesses make the mistake of storing large quantities of their products or supplies in a small warehouse. Failure to use a suitably sized facility makes a business unable to efficiently manage its inventory, eventually leading to supply shortages and delayed orders. Engage with an experienced third-party logistics company with on-demand access to warehousing to ensure the best rates all year round. A good warehousing partner can help you reduce wastage by making small but significant changes that speed up operations.

Embrace Technology

You can improve logistics by leveraging technology to your advantage. Modern tools are designed to reduce the number of manual steps and improve efficiency. This automation could substantially speed up lead times while reducing human error. Business process automation, scheduling, and KPI dashboards, connected inventory tracking, and communication software help provide real-time updates that make work a lot easier.

Update Customers Regularly

Continuing in the line of technology-driven improvements are transportation management systems that bring all the pieces of logistics management together. They enable you to manage every stakeholder's needs in your supply chain ecosystem: suppliers, carriers, warehouse managers, and most importantly, the customer. Standardize your logistics practices and build regular updates to streamline operations across the supply chain.

Improve Planning and Forecasting Using Data

A lack of real-time insights into inventory levels can cripple your business with overstock and out-of-stock scenarios. Northfield's proactive inventory planning facilitates inventory optimization and empowers demand planners to replenish supplies at regular intervals accurately.

Partner with a third-party logistics company

Sometimes the simplest solution is also the best one. Many of the solutions offered above seem pretty obvious, but companies often ignore them and pay more for supply chain and logistics management services than they should. Innovative companies can mitigate costs by adopting a proactive and well-planned strategy in partnership with an end-to-end logistics specialist to manage logistics at their organization.

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Northfield fosters continuous innovation to transform the global supply chain by providing unrivaled end-to-end global procurement, logistics, production, and supply chain management solutions.