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Improving logistics efficiency

Improving logistics efficiency

Like many areas of the supply chain, logistics is something that requires continual improvement to ensure it’s working at maximum efficiency. Whilst there isn’t a one size fits all strategy to increase growth within a business, there are a few areas you can look to if improving logistics is one of your concerns.

Effective logistics processes ensure healthy profit growth, help to improve customer experience and give businesses an edge over their competitors. Below, we look at a few ways you could improve your logistics efficiency and take your company further.

 

Optimise and minimise transportation costs

As the cost of transportation goes up, so does the cost of everything else. Keeping these costs down to a minimum is imperative if you want to save money and reinvest it elsewhere in your company.

 

There are a few ways you can slim down those costs including:

-       Experimenting with smaller packaging

-       Investing in more energy efficient vehicles

-       Improving the way goods are packed

-       Ensuring well planned loading and delivery routes

-       Optimising the size and weight of packages

 

Not all of these solutions will work for all businesses, so it’s a good idea to consider where the weaknesses lie within your transportation. If you need help with this, you can always enlist the help of a logistics specialist.

 

Maximise warehouse space

It’s a common problem faced by many warehouses and yet still so few managers do anything about it.

Correctly dividing and using warehouse space can save businesses a lot of money, especially as it will force you to take a good look at dead stock that’s just lying about. Implementing best practices for warehouse space isn’t just about putting stock in the right place and minimising steps, it’s also about continually monitoring what stock is selling and what stock isn’t.

A product that’s popular for your business now might not be the same thing that’s popular in 5 months’ time. By keeping a good record of exactly what your company is selling, you can more accurately assign the correct amount of warehouse space for each product.

 

Go automatic

Logistics management software is a great way to improve efficiency and helps to ensure that there’s ample communication between the warehouse and accounting departments. Good cross-company communication is essential for a well-oiled supply chain.

It can significantly streamline the entire process from start to finish, keeping employees on track and customers informed. If you haven’t already started to use online, automated software in your business, now is the perfect time to start.

 

Ask for Employee input 

Ask for employee input

Finally, don’t be afraid to ask for feedback from your employees. When working in warehousing or transportation every day, they’ll get to see a lot of the problems a manager simply won’t. As a manager, you probably aren’t going to be able to get to know every area of your department in the same way your other employees might, as you’ll be trying to tackle and manage a number of different things at once.

Whilst it’s not a bad thing to be all things to all people, by actually listening to the concerns of your employees on the front line and respecting their input and ideas, you’ll have a much better chance of making a real improvement to the efficiency of your logistics.

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