What do you think about when you hear the word “logistics”? If you think it’s the transport of goods from point A to point B, you’re half way there.
What does Logistics mean?
Logistics is the detailed organisation and implementation of a complex operation. A supply chain comprises all the activities associated with the flow and transformation of goods, from the raw materials stage through to the final consumer. It’s a sequence of events intended to satisfy a customer or end user, and it’s made up of various core elements or processes, including manufacturing, distribution, transport, warehousing, inventory control, materials handling and procurement. With so many elements and processes involved, logistics is a little bit like juggling… When the system’s working properly and you’re in a good rhythm, everything slots into place. But when one balls drops, the entire thing can come crashing down. The key to any effective supply chain is setting up systems that ensure a smooth process from manufacture to distribution.
Logistics is a complex business function.
The more steps there are in your logistics plan, the more efficient your entire process needs to be. If several different materials need to be supplied to a certain location at different times, your supply chain not only needs to be efficient, but also able to quickly respond to problems as they arise. The larger your operation, the more difficult this becomes, and the more prepared your business needs to be. To help your supply chain run as smoothly as possible, here’s our top five tips for effectively managing your logistics.
The manta for logistics and supply chain that many logistics managers around the world live by is the ‘7-rights’:
- Move the right materials/products
- In the right quantity
- In the right condition
- At the right time
- To the right place
- At the right cost
- To the right customers, associates, suppliers or stockholders
Cerasis.com share six important tips for effective logistics management and network optimisation. We have summarised them for you:
Proper Planning – The first step to accomplishing a task is planning. Now, planning encapsulates various factors. It involves procuring the goods, storage facilities, and delivery of products to the exact location.
Adopt Automation – In the age of automation, technology plays a major role in increasing the efficiency of an organisation. Automation has a vital role in the business process optimisation. Business process software can be integrated that provides timely updates regarding the movement of goods.
Value Relations – The team is an essential aspect of an organisation, especially in the supply chain function. 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 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.
Warehouse Management – Effective logistics management is incomplete without proper warehouse management. Warehouse operations are considerably dependent on the type of goods. The logistics firm should aim at developing the warehouse inventory so that there is minimum wastage of goods. Moreover, maximise the storage capacity of the warehouse. Usage of vertical storage columns is recommended.
Efficient Transportation – Transportation department can be analysed 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.
- Cost-effective packaging that ensures low investment and safety of goods as well.
Measure and Improvise – Logistics network optimization is incomplete without integrating measurement, analysis, and feedbacks. 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.