Logistics is one of the most crucial components of supply chain management. Logistics is often seen as a blueprint of the supply chain as it involves the complex pattern of shipping, transportation, inventory management, production, warehousing, and every other element involved in the supply chain. Optimal logistics management can help companies save time and money and build a strong reputation by delivering strong customer service.However, managing your logistics efficiently can be a tricky task. It requires a lot of time and expertise to ensure that your logistics is optimized for quality control and timely delivery. At BlinkGlobal, we help companies manage their logistics efficiently through centralized procurement and risk mitigation. In this article our experts have some tips and tricks to help you manage your logistics effectively and increase your bottom line.
Small and large enterprises understand the importance of proper logistics planning alike. However, the problem with small businesses is that when it comes to creating a comprehensive logistics plan, they often fail to guard their logistics against fluctuations which can result in increased costs and delayed deliveries.At the heart of every logistics plan, there are three main factors – time, transportation, and cost. Create a proper plan that includes a detailed schedule of purchasing, production, cargo volume, delivery, and warehousing at both ends. The planning should aim at minimizing the cost while getting maximum work done in the minimum possible time.
Use Technologies To Your Advantage:
There is no debate in saying that the new cutting-edge technologies have made it easy to monitor metrics and maintain transparency. Modern logistics software and tools can help you automate the processes and properly organize the flow of goods. Choosing the right logistics software can be tricky. Here is what to look for in digital logistics.
Enterprise Resource Planning
Integrated SCM Suites
Warehouse Management System
Manage Transportation Costs
Costing and Invoicing Control
Client Web Portals
Vehicle and driver tracking on-the-go
Apps with multi-lingual support
Use the Power of Data:
Data has revolutionized almost all fields of business, and logistics analytics is one of them. Businesses can use the power of data to optimize routing, streamline factory operations, and ensure transparency across the entire supply chain. This is beneficial for both logistics and shipping companies.Data is the most valuable asset, especially in any organization. In order to leverage the maximum power of data, make sure you have it organized in a single, centralized, and well-organized repository.
Develop Risk Contingency Plans:
Logistics is always vulnerable to risks and disruptions. These risks can be external such as geo-political or natural risks, and there are also internal risks like disruptions in manufacturing and financial risks.For effective logistics management, it is important to prepare for the financial and reputational impact of possible disruptions and develop mitigation contingency plans that will help you reduce the impact of any disruptive event. It is also important for retailers to have a logistics contingency plan.
Choose your Transportation Mode Wisely
Choosing the right mode of transportation and equipment can help you reduce shipping and logistics costs. Depending on the delivery time, the destination, and your budget, the goods can be transported by road, rail, air, sea, inland, waterways or a combination of any of these. When deciding which mode of transport to use, the following factors should be taken into consideration.
Cost of Service
Speed of Transport
Regularity of Service
Nature of Commodity
Partner Up With a Logistics Company:
The upfront cost to establish an efficient inventory management department may require hundreds and thousands of dollars. For startups and companies with low revenue, putting up an inventory management infrastructure may mean comprising on other areas such as marketing, or packaging etc.3PL partners have already invested in infrastructure development that provides the most cost-effective solutions. Moreover, they have expertise, knowledge and the skill to optimize transportation, reduce operational costs, and provide better inventory management.
About Blink Global
Your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision