5 Ways to Streamline Business Logistics

Streamline-Business-Logistics

Daily business operations have the power to significantly increase or reduce potential revenue flow throughout the organization. Streamlining business logistics could result in higher net profits. Here are five ways to modernize logistics operations.

1. Review Existing Processes

Before a business can begin to make improvements, the existing processes must be analyzed. Some operations may be running smoothly and even driving the rest of the supply chain. Select the areas that create chaos, havoc, and even employee dissatisfaction. These are the pain points of the organization and should be inspected for ways to increase efficiencies.

Record existing practices and reference this data frequently throughout the improvement process. This information ensures that expenses associated with restructuring stay on course and also provides evidence of logistics success throughout the process. Setting clear and proper expectations for all logistics staff at this stage is vital to the overall success of the streamlining process.

2. Domestic Versus International Logistics

Logistics for domestic operations should look different than the approach for international operations. The dispatch software may be similar, but the shipping and receiving requirements differ greatly. Not having a solid plan to address customs paperwork or to anticipate potential delays will reduce profits and frustrate workers on both ends of the shipment.

Keep domestic and international divisions separate and allow room for fluidity in the management of both people and processes. Political climates change on a daily basis, and relying on the same technology and management styles for international customers could be a mistake. Ensure that operations and purchasing agents are constantly on the lookout for trade delays and new procedures due to unforeseen circumstances. Have a contingency plan ready to address potential delays and communicate to staff and customers.

3. Utilize Effective Technology

Technological advances have changed virtually every area of delivery and logistics mechanisms. Implementing a GPS tracker on fleet vehicles provides both security and accountability. Tracking software allows dispatch operators to quickly map routes, navigate potential delays, and work around rush orders or other unexpected obstacles. Drivers are able to transmit their location in the event of misdirection or traffic accidents. Owners and operations managers can rest easy knowing their staff and contents are accounted for and fully secure. A final benefit of automated tracking systems is that commercial insurance rates may be reduced.

4. Expansion and Reduction of Services

A deliberate focus on profitable revenue will help any business streamline its logistics operations. Everything from local delivery runs to international shipments is subject to common flaws and misnomers. For example, most small businesses want to accept every request for transit. The fear is that turning away a customer is so bad for a business that it could potentially result in the loss of other business opportunities. While that may be true, one is guaranteed. Taking on jobs simply because “no” is not an option will result in a loss of revenue.

The opportunity cost of taking a less profitable job just to keep a customer happy is too great to ignore. One customer with low to mediocre potential should not always be given top priority. If a single project has the potential for greater profit within the same time frame, it should be given higher placement. The same is true for customers who have a higher lifetime potential. Repeat business is preferred over one-off jobs that may never generate additional opportunities.

5. Implement a Customer Response Model

Streamlined logistics processes will be most successful when there are equal parts of technology and human effort. A customer relationship management (CRM) system is vital to track client information and generate new leads. With a focus on technology and profitability, business growth across several areas will vastly improve. Sustainable growth in logistics today requires an ongoing CRM learning profile. Putting customers first is essential for any business, but even more so for logistics services because there is simply an overwhelming number of service providers available.

To effectively streamline business logistics and stay ahead of the competition, a business must maintain an excellent customer service standing and a focus on the future. The evolution of modern-day logistics continues to surprise even the most tenured entrepreneurs. Stay alert and engaged with the trends.

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