When people think of logistics, the first thing that comes to mind is warehousing and distribution. However, logistics are so much more than that; they encompass core business processes that can largely dictate success or failure. Logistics encompass everything from manufacturing and quality assurance to inventory management and shipping & delivery — all of which play a key role in implementing a winning strategy.
To find out how you can improve your logistics for bigger and better results, read on below!
1) Outsource Distribution
Do you really want to oversee the entire distribution process for your products? Can you handle every aspect of distribution yourself? If not, then it might be time to outsource. Outsourcing distribution allows your team to dedicate time to other important aspects of your business. By outsourcing logistics, you will eliminate the headaches and repetitive tasks which come with distributing inventory and be able to focus on other areas of your business instead.
Tip: Use a local distribution partner, such as STR Logistics. Local companies are often renowned for their local knowledge and access to equipment and facilities strategically placed to their advantage.
2) Use real-time data & analytics to drive decisions
Data and analytics can be used as powerful tools. By using data and analytics, you will be able to identify bottlenecks in the supply chain and be able to implement concrete solutions to improve efficiency.
For example, one study showed that by using real-time data and analytics an increase of just 1% of repeat visitors to a website can improve overall revenue by approximately 10%.
3) Get ahead of the curve
If you want to achieve the greatest results, it’s important to be ahead of the curve. By getting ahead of the curve, you’ll have a head start on your competition. Thankfully, there are plenty of ways for you to get ahead of the pack by implementing some or all of these strategies:
Get smarter about inventory. You can acquire more accurate data and make better purchasing decisions by implementing a robust ERP package. One study showed that on average an ERP can reduce overall costs by 23% and administrative costs by 22%.
You can acquire more accurate data and make better purchasing decisions by implementing a robust ERP package. Implement tailored distribution models and procedures for your products or services. You should implement different scenarios for different products as well as different shipping and delivery options depending on various factors such as product type, pricing and seasonality.
4) Build a warehouse – or not.
How big do you really need? A 340,000 square feet warehouse might have been sufficient yesterday, but with the latest technology and customer expectations, will that be enough today? The same goes for when some of your competitors start building new mega warehouses? How will your business stay in the game?
Warehousing has become increasingly complicated due to an ever-increasing demand for faster delivery, lower costs and greater flexibility – which all require more automation. Smaller and nimbler players can offer customers more flexibility at a lower price than their bigger peers. That’s why innovation and rapid changes are needed every day if you want to stay competitive in the long run.
Improving your logistics doesn’t have to be a time-consuming process. By focusing on the main areas outlined above, you will be able to establish and maintain an effective logistics strategy which will lead to greater success.