Good Logistics Strategies

Many people will tell you that it is the toughest to manage logistics. Poor logistics strategies can easily ruin a business. This is why managing logistics is a continual optimization process. Best logistics practices must be responsive and ready to adapt to what’s most rewarding in a given moment for your business goals. 

Use these good logistics strategies to make your company more competitive and efficient.

Demand-Driven Market

Demand guides logistics systems. A demand-driven market means a rise and fall in orders over the year. Learn how to anticipate demand going up and down and adjust your supply chain and logistics system when it saves you in cost.

Know and Mitigate Risks

Logistics and supply chains have risks everywhere. Know them. Mitigate them. Logistics and supply chain resilience, data security, and supplier risk are all areas to look at. As a business, you can never fully eliminate risk. However, you can be flexible and prepared to respond.

Warehouse Management

A logistics warehouse should be managed where waste is minimized and storage capacity maximized. Ensure your warehouse is sequenced properly, storage is optimized, and locating products should occur in as little time as possible. A key sub-strategy is maximizing vertical space over expanding square footage.

Utilize High-Quality Logistics Software

To adequately monitor your logistics system, employ a dynamic logistics software solution. There are several logistics software and apps to choose from. Find one that suits you, with the capability to help you manage expenses, manage data, automate reports, and track products accurately.

Analyze Transportation Data

Find the safest, shortest, and best route for the fastest delivery possible. This may sometimes involve moving a warehouse or altering logistics operations. This data arrives through monitoring software and independent research to fine-tune transportation expectations.

Have Strong Suppliers

Your inbound suppliers must provide the service you need, have reasonable costs, and provide the right warehouse. If your suppliers are under-delivering, collaborate with them to see if improvements can be made. Consider a third party logistics supplier with a stellar reputation.

Have Open Communication

Have open communication with your buyers, suppliers, and third-party stakeholders. Provide them with information and guidance on inventory forecasting and replenishment and how this applies to staffing and transportation schedules, with the ultimate goal being to maximize cost-effectiveness.

Commit to Fast Deliveries

Your outbound logistics should be optimized to transport and deliver orders quickly and smoothly. Examine transportation routes and ensure there isn’t a cheaper or easier way to make it work. 

If you’re transporting a certain volume, ask for a volume discount from your shipping and transportation partners.

International Transit Times Are Hard

When you send a product internationally, you may face difficulties with fast delivery relating to geographical distance. Cultural, language, and business barriers may prevent healthy logistics service delivery. This may require extra attention, strategizing, and collaboration to fully optimize.

Proper Training of Employees

You don’t oversee all logistics supply chain team members. However, ensure you’re providing adequate resources to ensure they are fully trained to meet their role expectations. They should understand the processes and procedures to represent your brand and standards.

Refine Your Products Return

Returns will happen. Standard operating procedures are in place, depending on whether the item is a defective product, recall, end-of-life product, or a ‘simple return’. Create a return policy designed to reduce logistics costs and returns without sacrificing customer satisfaction.

Audit Your Logistics Annually

Conditions change over time. Inflation and costs increase. Put your logistics under intense scrutiny and audit everything once a year. Consider new sources, rate shopping, and alternate transportation modes as possibilities. Reset your logistics if/when needed.

Consider Third Party Logistics

A third-party logistics provider offers the services we’re discussing here and is an expert in logistics strategies. They can help you manage your logistics planning and optimization and will do all the work for you under your guidance and direction. 

Typical services include transportation, storage, packing and packaging, inventory forecasting, order fulfillment, returns processing, and more.

Environmental Sustainability

Up to 39% of consumers make purchasing decisions based on a company’s or a product’s environmental impact. Focus on how you build a product and sustainable packaging, environmentally-friendly delivery, and logistics. As is often the case, more eco-sustainable delivery options can lower costs.

Enhanced Customer Experience

Another healthy logistics strategy is to focus on customer experience. Provide them with accurate delivery times. Offer real-time shipment tracking and proof-of-delivery information directly to the customer. Involve them and communicate with them if/when unexpected delays cause interference.