Logistics management represents a daily challenge for many companies.If successful, this process can effectively lower potential overspending and optimize your operations globally.
Have you ever wanted to stop operating in a particular market because transportation costs are always on the rise? If this is the case, be assured that there are solutions to tilt the balance in your favour, even if you do not have the in-house staff or resources.
The logistics industry is full of subtleties, and each market imposes its own particularities onto the process. It is important to have a full picture of the flow of your orders at all times, especially in terms of your transportation costs. This is the key toward achieving better profit margins.
WHAT ARE THE BEST WAYS TO EFFECTIVELY MANAGE LOGISTICS?
Establishing better logistics management mechanisms is not a complex process in and of itself, but it can help to ensure that your company remains market competitive. Here are four effective strategies for success.
1. Manage each link in the chain:
A supply chain consists of several links, including supply, storage, and transportation. And of course, each step comes with its own set of costs. Every partner or external collaborator involved in these activities must be carefully selected, in order truly optimize the entire process.
In order to benefit from competitive prices at all times, we recommend that transportation stakeholders compete on a regular basis. As a result, your long-term collaborators will have to re-evaluate their existing prices and conditions or the risk losing your customer base. This is a healthy and necessary process that can produce immediate positive results.
2. Implement Key Performance Indicators (KPIs):
Measuring the efficiency and effectiveness of your operations is essential to staying competitive. KPIs (Key Performance Indicators) are the tools that you need to help you to measure the performance of transportation activities and to explain the corrective measures that are required. The most relevant indicators include:
- The number of new customers
- The loyalty of your customers
- The number of stockouts
- Respect of delivery deadlines
With good KPIs in place, it becomes easier to anticipate your sales and to assess your overall efficiency.
3. Select your Incoterms:
Incoterms are essential international regulations. They are used to define the respective obligations of sellers and buyers in a transaction between two countries. With these 11 Incoterms, all modes of transportation are covered and both buyers and sellers are given clear rules.
Monitoring your logistics involves choosing the Incoterm that allows you to dictate the terms of delivery. In this way, you further optimize your costs, monitor your transport activities, and directly manage the risks of delays.
4. Consolidate your orders and packaging:
Managing logistics allows you to reduce your shipping costs, including consolidating orders destined for the same region, as well as giving you a greater understanding of your transport flow. This management allows you to achieve significant savings on shipping costs.
HOW CAN FYNLAM CONSULTING SERVICES HELP YOUR COMPANY TO STRATEGICALLY CONTROL ITS LOGISTICS?
Fynlam Consulting Services brings added value to companies that do not have the resources to monitor all aspects of their logistics and want to organize or optimize their logistics process. This allows for significant savings!
For more than 25 years, the Fynlam team has provided strategic sourcing services and transportation and logistics strategies.
Contact Fynlam Consulting Services to help you take control of your logistics.
