Logistics is essential for the operation of the entire consumption cycle, from the transport of raw materials to the delivery of the final product to customers. Taking this into account, knowing how to optimize the management of logistics operations in a company is a decisive step to improve your performance in the market.
To help you better understand the subject, we have prepared this article where we explain the importance of this practice, and we also give you 5 tips on how to improve the management of your company’s logistics operations.
What is the importance of managing logistics operations in a company?
When we talk about logistics operations management, we refer to a series of vital activities for the operation of any company. Some examples are: transportation, storage, handling, packaging, delivery, among many others.
In fact, it is clear that these activities are directly related to the level of satisfaction of your customers ; After all, when they are executed poorly, they can cause problems such as: damaged merchandise, expired products, delivery delays, etc., which directly affect the image of your company.
In this way, optimizing the management of these operations, in addition to increasing productivity, also actively contributes to raising the satisfaction levels of your customers, who enjoy a better quality service. This translates into an essential competitive advantage for your business.
How about some recommendations so that you know how to optimize the management of logistics operations in your company?
5 Tips on how to optimize the management of logistics operations in companies
Optimizing the logistics operations management of a company allows this division to occupy a strategic position within the business. Through the implementation of improvements, it is possible to generate consistent results, capable of increasing business competitiveness, reducing costs and increasing your profit margin.
What can you optimize in the logistics operations management of your company today? Check out these 5 tips that can help you achieve promising results for your company:
1 – Invest In Technology
The use of systems, software, and management tools facilitates organization and allows for the automation of tasks, increasing productivity and eliminating bottlenecks that hinder the operation of the company.
In addition, these technologies allow integration between different sectors that naturally work interdependently, providing access to updated data, greater agility and more reliability in the exchange of information.
Through integrated logistics, the sector is no longer merely operational, but has assumed a strategic role within the organization.
2 – Planning, Execution, Monitoring and Improvement
This is a cycle that should be adopted as a mantra in the management of your company’s logistics operations.
Logistics planning is about defining how your company plans to deliver products to customers. Some of the main activities involved in this process are: distribution, handling, packaging, transportation and delivery. Structuring each of them is essential to guarantee the success of your operations.
With solid planning, you’ll have much more confidence in your actions, but your job doesn’t end there. The most common mistake is thinking that after you put your ideas into action, everything will work on its own. Carrying out constant monitoring is as important as planning, looking for failures or points that need improvement, to perfect your management more and more.
Speaking of monitoring, the question is: “what exactly needs to be monitored?” Which brings us to our next topic, managing KPIs.
3 – Track Key Performance Indicators (KPIs)
The monitoring of logistics performance indicators allows you to measure and evaluate the performance of vital processes for the operation of your business. In other words, we can say that this is one of the easiest ways to optimize the management of your company’s logistics operations.
Choosing the KPIs to monitor is a strategic issue, which must be done based on the goals and objectives of your business. With that in mind, you should ask yourself, “What are the most important factors for my business to grow and outperform the competition?”
This infographic shows the main types of performance indicators, and can serve as a basis for defining your company’s KPIs:
4 – Know Your Market and Demand
Knowing the market in which your company operates and analyzing the sales history, allows a more accurate forecast of your demand. In this way, it is possible to plan a lighter production, reducing storage costs without running the risk of losing sales due to shortages, when your production falls below market demand.
5 – Adopt An Efficient Routing System
Taking into account that transportation costs are equivalent to almost two thirds of logistics costs , adopting a good route planning system should be one of the priorities of your business; after all, this technology can contribute to saving fuel, maintenance and even tolls.
In addition, another benefit of route planning for logistics operations management is related to increased productivity; After all, with well-planned routes, it is possible to reduce delivery time and increase volume, making your operation much more profitable.
