Important Tips for Effective Logistics Management

June 19, 2020 Blog

By Ajay Kumar Dwivedi

  1. Proper Planning

The first step for effective logistics management is to make proper planning. Now, planning includes various factors. It involves procuring the goods, storage facilities, and transportation of goods within TAT and at correct locations.

A supply chain operative should be able to devise the flow chart for the whole operation. The purpose of planning is to attain maximum productivity in the least possible time. At the same time, the planning should aim at maximizing the profits.

Proper planning is a wise plan, but an experienced manager will be able to prepare for the unforeseen circumstances as well. These situations can be related to a contingency plan should be there to avoid any logistics failure. The logistics planning process is incomplete without an emergency plan.

  1. Adopt Automation

In the age of automation, technology plays a major role in increasing the efficiency of an organization. Automation and productivity go hand in hand.  Automation has a vital role in business process optimization. Today there are many SCM companies deploying various tools/software available for logistics process, they are customizing as per their customer needs.

This saves a considerable amount of time because manual interference is eliminated. Moreover, accurate tracking help in improving overall process management.

  1. Value Relations

The team is an essential aspect of an organization that is responsible for growth. Whether it’s the delivery guy or the warehouse manager, everyone should be perfect in their respective field of work.

For this, you need to invest in the proper training of the employees. Regular training workshops keep the employees updated with the latest trends in the logistics industry. This helps in increased efficiency and satisfaction of the clients.

  1. Warehouse Management

Effective logistics management is incomplete without proper warehouse management. Warehouse operations are considerably dependent on the type of goods.

For example, perishable goods, such as dairy products, need refrigeration facilities. Grains should be stored in a moisture-free environment. Electronic, Pharma will have their own set of challenges, storage criteria.  Proper stacking norms, well-defined layout to ensure there is no wastage of time in inbound, put-away and outbound process. The logistics firm should aim at developing the warehouse inventory & storage so that there is minimum wastage of goods, high productivity.

  1. Efficient Transportation

Transportation department can be analyzed to decrease the expenses of the logistics firm and at the same time, it can be revamped for faster delivery of the products. Following factors should be considered for efficient transportation:

  • Determining the best delivery route. A logistics firm should opt for the shortest yet safest route. This is beneficial for saving money as well as time.
  • Cost-effective packaging that ensures low investment and safety of goods as well. Optimize the packaging so that it occupies less volume and it does not increase the weight of the package.
  • Maximum space utilization of vehicles, to ensure cost benefits.
  • Onboarding multiple service providers to bring in competition to get a better rate.
  1. Measure and Improvise

Logistics network optimization is incomplete without integrating measurement, analysis, and feedback. When you deploy new strategies in the system, you need to measure the output. This is important as it intimates the success or failure of the strategy.

Measurement tools and software should be integrated that easily determines and classifies the information as per the requirement. Your future planning is heavily dependent on the measured information.

  1. Conclusion

If you wish to triumph over your competitors, you should adapt the latest technology and innovative and analytical approach. The aim of effective logistics management is to improve the efficiency of the operations, ensuring customer satisfaction, and increase productivity.

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