Best Practices to improve efficiency in logistics

“The line between disorder and order lies in logistics…”

– Sun Tzu

Whether it be healthcare or automotive, whether it be manufacturing or e-commerce, the success of any business involving the movement of tangible products and goods heavily depends on logistics. From customer satisfaction to reducing damage losses, well-managed logistics can boost the profits of the company and help create a niche in the competitive arena. Owing to different terrains, climatic conditions, rules, regulations, etc… it is quite a challenging task to maintain effective logistics management. And, once done, it can prove to be a boon for the company.

Improved logistics efficiency results into

• Reduced Costs

During the entire process of transportation and logistics, a large number of smaller and larger processes add up to increase the cost. However, well-managed and efficient logistics can help curtail many of them, thus saving money and time. Where on one hand, seamless transportation and strategic route planning can save fuel costs, on the other, optimized warehousing can reduce the storage cost exponentially.

• Improved Customer Satisfaction

How would you feel if Amazon was to deliver the promised 1-day-delivery parcel after one week? How would feel if the Zomato order was delivered the next morning? How would you feel if Apollo was to deliver medicines several days later than when it was needed? Definitely, all these experiences would lead to a negative connotation for the brand and hence, would force you to reconsider your decision of buying through/from them.

Customers are the king, and if they are treated well, one would be rewarded handsomely. And, in doing so, logistic management is something that plays a major role. Be it delivery prioritization or undamaged packaging, everything adds significant value to the entire process, thus leading to a contented customer.

• Better Networking

You would have often heard the saying “United we stand, divided we fall!” And, this is absolutely true in the case of logistics.

Think of a situation wherein an influencer receives a damaged Diwali hamper from a brand that is to be promoted. How would that feel? Be it brands or suppliers, be it transporters or industry big-shots, a company needs the support of everyone to grow, expand and earn. In such cases, great logistics and meticulous last-mile-delivery services help create brand value, attracting more collaborations and ambassadors for the same.

• Industry Repute

Who doesn’t want to be famous? But, like they say, “With great power comes great responsibilities.” Industry values those who are valued by all. And when it comes to creating a brand repute, stellar logistics play a pivotal role. Smooth deboarding of goods, proper warehouse management, and effective exception handling are some of the things that speak for themselves.

Managing logistics isn’t everybody’s ball game. It is a skill that demands experience and expertise. However, below given are some of the ways which can be helpful while aiming to improve the logistics in one’s company.

• Tech-Aided

Now is the time for tech. From AML to Artificial intelligence, from blockchain to IoT, from robotics to advance data handling systems, technology if utilized well and within limits can revolutionize the way logistics are handled. It can not only ensure highly efficient systems but also make data-driven forecasts to optimize the processes and mitigate the losses to be incurred.

• Cross Functional Growth

What if the four legs of a chair were not equal? It would, definitely, lead to an imbalance. In a similar way, cross-functional growth is imperative for the success of the company. On one hand, proper transportation needs to be ensured, on the other, efficient supply chain management must be in place to ensure a seamless last-mile delivery.

• Thorough training

Practice makes a man perfect, and so, the key to reducing errors in the process is thorough and guided training. Whether it be operating the devices or manual work, everyone must be trained well to ensure all the processes are working smoothly and synchronously.

• KPI-Centric Work

Qualitative and quantitative analysis of the work being done is one of the most essential keys to success. Work that is not measured, either way, is work wasted. It is imperative to experiment, analyze, and know what works and what doesn’t, what is more profitable, what adds more value, etc… Until a KPI-centric structure is established – be it qualitative or quantitative, a channelized system is very difficult to be established.

• Feedback

To err is human, but what if we aren’t aware of our mistakes? To avoid such a scenario, proper and periodic feedback must be taken from all, across different hierarchical levels. This not only helps us to root out the weeds but also helps us to analyze the roadblocks at different levels, optimize the plan of action as well as look at the processes with a better perspective for future operations and management.