Logistics cost American firms $1.6 trillion in 2018. That’s a whopping 8% of that year’s GDP! Big companies can afford to outsource their logistics tasks if they so desire. However, smaller firms don’t have this luxury and have to, therefore, be proactive in managing their business logistics management.
Read on as we explain three of the things that we feel are highly important when managing business logistics.
This may sound like an obvious inclusion. The organization is the most basic part of business logistics management, right?
Well, yes and no. Organizational skills are certainly a fundamental part of the process, and no one should be in charge of logistics management unless they have them in abundance.
However, that doesn’t mean that efficiency isn’t compromised each and every day by simple slips in an organization.
The perfect logistics management system is one that’s the same for everyone. That means clear communication and accessible systems of reference.
Many logistics managers think their systems are perfect because they themselves can use them without difficulty.
However, if other workers can’t easily navigate them, they’re flawed. Simple as that. If operatives continually require help locating or classifying certain things, organization is letting you down.
Prioritize labeling and marking, and make sure the systems for these things are clearly communicated.
2. Data Usage & Assessment
The first step to success under this heading is data collection. You can’t make sense of data if you don’t have data in the first place.
Keep track of all salient figures to do with your business logistics management. Make sure these are accessible and understandable.
Once a reliable system for doing this is in place, leverage this information to produce better outcomes for your business.
For instance, how long does it take to reach Pont A from Point B on your busiest route? Is there a way you could reduce this time, such as by using different roads or by traveling at a different time?
A productive answer to a question like this means more dollars on your balance sheet at the end of the year.
3. Employment of Cost-Effective Automation
This can be a thorny topic for some small business owners. With automation replacing human workers, nobody wants to put a valued colleague out of a job.
However, in years to come, businesses will simply have to look to automated solutions to remain competitive.
One example of this currently in practice is inventory tracking software. These mechanisms will track all items brought in and distributed, streamlining these processes and eliminating human error.
However, always ensure that such an investment would be cost-effective in the long run.
So, Are You Ready to Take Your Business Logistics Management to the Next Level?
You can now see that business logistics management is not always the easiest thing to keep on top of.
However, the above advice can help smaller businesses to maximize their logistics efficiency.
If you want professional help with your approach to logistics management, we’re your first port of call. Contact us today to make an inquiry or arrange a consultation.