You Can Improve Company Logistics Using These 6 Simple Tricks
Optimizing company logistics will not only save you thousands of dollars in fuel but will also help streamline your entire business operation while delivering better service to your clients. Many businesses don’t spend enough resources on logistics and end up paying the price through both unnecessary expenses and limited operational capabilities. Here are a few things you can do to take your logistics to the next level.
1. Hire Professionals
When you hire a driver for a truck or even hire warehouse staff to manage inventory and stocks, you are giving them thousands of dollars worth of assets. This is the first line of defense and the only line of control you have over your capital assets. Investing in hiring properly trained and certified professionals will help reduce damage and increase efficiency. Moreover, it can even make you liable for more comprehensive cover from your insurance provider.
2. Train
Once you have a team of qualified professionals ready to take on the job, start off with some basic training. Even with their qualifications and previous training, you need to make sure that they are completely comfortable with operating your equipment. Moreover, you also need to take the time to inculcate your own processes and requirements in your staff to further minimize the chance of any problem. Take this opportunity to train everyone in the supply chain that is related to, or will come in contact with, your assets in logistics.
3. Monitor
Even with all your training, it’s a good idea to use technology to monitor activities. Whether that is a CCTV camera for the warehouse or dash cams for fleets, this equipment will provide you with essential data. Moreover, it helps to keep compliance with regulations high as staff knows they are being monitored. This is especially true for vehicle operators as they are often far from the office and are more likely to behave in a way that is not in line with their operating procedures. Additionally, in the case that something does go wrong, you will have solid evidence you can use.
4. Capital Assets
Some companies have their own logistics solutions while others rely on specialized logistics providers. In either case, the capital assets used in the logistics process need to be in top shape. Financing these assets can be challenging but you are far better off starting with brand new machinery than buying used equipment. If you do choose to buy used then make sure you are getting reliable financing. Also, have a qualified professional inspect the quality of all the machinery before finalizing the deal.
5. Insurance
Business insurance is great to have but as a logistics company, you will also need specialized insurance for your trucks and other automotive machinery. Ideally, you should be opting for specialized vehicle insurance for fleets and one that caters to the particular machinery you have. However, fleet insurance is not a replacement for business insurance; they both have their own place.
This is going to be a critical consideration if you are also looking to secure financing for expanding your fleet or investing in other business infrastructure. Purchasing inventory insurance for the products that are moved through the logistics chain will also be a great choice and one that will win customer trust. If you are offering quality services, customers will be happy to pay the price.
6. Optimization
With everything ready and set to go, now is the time to start learning. It will take some time for you to understand the rhythm of the entire cycle. Initially, the aim is just to observe to see what the strengths and weaknesses of the system are. Once you have a better understanding of what is working and what isn’t, it is time to optimize operations.
This will help you develop the best strategy for scaling up and will make expanding your operations much more cost-effective. At a certain stage, you will need to hire logistics consultants to look at your infrastructure and suggest possible improvements to optimize things even further.
The logistics business is the backbone of any economy. In the near future, this business is well on its path to growth as the demand for goods in nearly every country in the world continues to grow. Investing in the right solutions today will ensure that you are up for the challenge in the future. Moreover, it will save you a lot of downtime and a lot of money to start off with the right systems rather than having to upgrade and change things in chunks when they finally give way.
