At Tconsult, we have abundant knowledge of logistics and multi-use packaging. We try to share this knowledge as widely as possible with our customers, contacts and partners. The purpose of this is always to help companies optimize and reduce costs. One way to do this is by implementing automation and digital solutions in the logistics chain. Our new blog tackles this topic, as we discuss 5 steps to drive efficient logistics and digitize supply chains.
Step 1: Good planning and preparation
The expression ‘well begun is half done’ is also applicable within supply chains. After all, companies always work from a base, but if this base is unstable, the whole structure collapses. This is why it’s important to come up with a good planning in advance. Good plans take several factors into account:
- Purchasing good
- Storage
- Time
- Transport
- Delivery
- Costs
- Storage facilities
The most important thing however, is to be prepared for the unforeseen circumstances. Not anticipating that which you already know, but preparing for what you don’t know. Unexpected changes are common, so a logistics planning process is incomplete without a concrete contingency plan. The fewer decisions that have to be made on a whim during the transport process, the better. Planners must also keep the final goal in mind. After all, the main purpose of a correct plan is always: maximizing profit and minimizing working hours.
Stap 2: Learn from your mistakes
Step two is about measuring and improving within logistics chains. Mistakes will always be made when implementing new strategies. However, if you are focused on learning from these mistakes, the mistake only needs to be made once. Logistics network optimization is incomplete without integrating measurement, analysis, and feedbacks. This way you can measure the effectiveness of the change, as making mistakes indicates the success or failure of a new strategy.
Review the company numbers and make changes where and when needed. These figures contain important information that help to run a business more efficiently. In fact, making mistakes while implementing systems is a good way to identify bottlenecks. Get feedback from employees to improve systems and correct flaws before they become a problem.
Step 3: Maintain company costs
Keeping operating costs under control is one of the best ways to improve logistics and transportation management efficiency. One way to do this is by analyzing all expenses related to transportation and logistics. This way, companies know which factors contribute to high spending. Does the delivery route cause a lot of unnecessary fuel consumption? Does an incorrect purchasing strategy cause high inventory costs? Or is it the packaging of your products? These are some of the things businesses need to figure out.
One of the most effective ways to analyze and save operating costs is to use automated solutions such as an ERP system. This software automates the entire process and ensures that each process is fast and accurate, so that any errors that lead to losses can be minimized. In addition, the system also enables companies to estimate income and expenditure for a specific period, so that budgets can be spent more wisely.
Step 4: Storage optimization
Naturally, the storage of goods and the layout of warehouses have an influence on the shipping process. That’s why it’s important to make sure that all items are properly stored and arranged. Store high-demand products in accessible places and make it easy for forklifts to move through every aisle to speed up the picking process. In addition, the use of an implemented stock management system with a barcode scanning option makes it easier to register incoming and outgoing goods.
Effective logistics management is not complete without good warehouse management. The smoother the warehouse operations, the better the customer service that companies can provide. Also, fewer products are lost or thrown away due to spoilage or damage.
Step 5: Implement useful automated and digital solutions
The final step revolves around automation and digitization, which plays a crucial role in the optimization of business processes. There is convenient software that can be used in the logistics process. The more businesses can rely on automated systems to help complete work, the fewer the problems that will arise. Examples of automated systems are solutions to read tachographs or manage your multi-use packaging. Companies will also notice that productivity increases and costs decrease. For example, business process software can be integrated that ensures timely updates on the goods movement. This saves a lot of time as manual interference is eliminated. In addition, accurate tracking helps improve overall process management.
Would you like to know more about Tconsult’s solutions or receive tailor-made advice for your supply chain? Get in touch with us!
