A big part of running any business includes managing the movement of goods from different hubs within the company, whether those goods take the form of finished products or merely stacks of paperwork. Other times it’s a lot more routine, such as ensuring that the administration team has all the stationary supplies they need to keep operating. As time is money, ensuring that these items get to where they need to in good time is a vital part of running a business, and many management teams have at least one person dedicated to overseeing supply chain logistics within their company. Larger companies may even have entire departments dedicated to overseeing the movement of supplies within their company.
Each company is different, and as such it’s hard, if not impossible, to describe a supply chain logistics strategy that can encompass every situation a given business might face.
Simply put, not every company will experience the same problems or challenges. Further, supply chains will eventually change as the economy develops, the company grows and new clients are reached. Thus having a flexible working strategy for your supply chain logistics can help alleviate much of the stresses involved, and make managing them far easier and more cost effective.
A Logistics Strategy Should Be
- Flexible – You never know when circumstances within the economic world may change. Transportation companies may go bankrupt, certain goods may become more expensive, and certain transportation lines may no longer be useable. Keeping your supply chains flexible can help you keep on top of unexpected changes, and thus afford you greater leeway.
- Functional – A strategy should also work hand in hand with all aspects of the business. Not only should you be aware of how other departments may affect logistics, you should be aware of how logistics affects other departments. Structure you supply chain logistics strategies accordingly.
- Strategic – Your strategy should also work in with larger company objectives and goals. Always keep in mind the big picture, and do not let the supply chain become tied up in minute details.
- Efficient – Above all else, your strategy must be efficient and simplistic. While you should not strip it down to merely a skeleton, you should avoid as much as possible unnecessary flab when designing your strategy. Always ask yourself whether certain components are truly necessary, or whether the overall system could be improved by the removal of a certain section. After all, if a strategy takes more time and money to implement than it saves, then it’s worthless.
If you’re not sure how to come up with a logistics strategy yourself, you can always look for assistance from a third party. Supply chain logistics consultants can help you set up a supply chain strategy for you by examining your company, its assets, and its needs. Doing so is a good way to quickly and effectively set a system up, which allows you to get the ball rolling if you don’t have time to do it yourself otherwise.