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Productivity

How to Improve Productivity in Logistics Business?

You’ll hear experts share their two cents on how to optimize your marketing investments, how to make sure your HR teams are doing a stellar job, and the finest ways to improve customer service. One of the most neglected sectors, on the other hand, has shown tremendous potential to make all other businesses significantly simpler and smoother, if we were to focus on that sector’s productivity. This time, we’re referring to the logistics businesses that exist for the sole purpose to streamline the most complex processes of other industries out there.

Whether you’re working with a transportation company to ship your products, or you work with a storage facility to make sure your inventory is handled properly, the realm of logistics is vast and intricate. When one of the cogs in this complex machinery fails to perform properly, all others will suffer the consequences. That is precisely why so many business owners in this sector are doing their best to implement creative solutions in an attempt to boost productivity. If you find yourself in a similar conundrum, here are a few suggestions you can use for your own logistics company!

Logistics

Use Analytics Tools and Track Performance

This simple tip applies both to your online portion of the business and your offline performance tracking. Every single segment of your company has the potential to improve, only if you’re able to pinpoint the exact issues that are slowing down the delivery process, the inventory selection, or customer service. Thankfully, there are numerous tools you can install and monitor, and create regular monthly reports to track specific metrics that reflect the efficiency of your logistics.

That way, you can create a strategy for each specific issue you encounter, in order to better target one problem at a time. A systematic approach such as this one is the best way not only to improve productivity but also to prevent future organizational issues that might lead to unhappy clients or poor communication with your vendors and partners.

Take Care of Your Fleet with Proper Maintenance

Cutting the time you spend fixing problems and the costs that wreak havoc on your budget are two of the greatest goals any logistics professional may have. Such complex issues can often be traced back to very simple solutions, and in certain cases, it comes down to how well you treat your transportation vehicles. If your drivers are working with faulty trucks that guzzle on gas more than necessary, and they take routes that are less than optimal, the wear and tear that ensues will build up quite an expense list for your budget.

Proper preventative maintenance is vital for your operations. This is especially relevant for fast-growing businesses, as taking regular care of your transportation fleet means you’ll be able to scale your business without too many setbacks. Use your digital calendars and tracking tools to make sure your regular maintenance sessions are completed.

Best Practices in Automation

Thanks to so many innovative tech solutions, even logistics can be made simpler and more streamlined with the right automation tools in your hands. Large, growing fleets that deliver a large number of products every day need to report so much different types of data that often gets unused – from delivery issues, client complaints, faulty equipment, all the way to fuel usage. All of this and so much more can be simplified by implementing a transport management system that automates the majority of these processes and eliminates human error.

No more idle vehicles while one truck is overburdened with deliveries, no more manual punch cards, and no more sending dozens of vehicles down the same road that’s actually under construction, only to have the delivery delayed and fuel wasted. The ultimate perk of such a system is that you can use the data to tweak your entire operation from start to finish and eliminate guesswork from the equation. Plus, you’ll no longer have to track piles of paperwork as you’ll have everything electronically stored.

Master the Art of Warehouse Management

Businesses often find themselves with a surplus of goods in their inventory simply because they’ve overestimated the expected interest in that particular product category. For items such as cookware, this may not pose such a huge problem, but for those who sell perishable and seasonal items such as food or produce, this can lead to massive losses and wasted goods. Other warehouse issues include managing proper storage, having enough people working with the inventory, or ensuring security for all those working in the warehouse.

You need a strong, structured system that will help you manage your warehouse properly. That means that any forecasts should be made based on actual, actionable data and that you should build long-lasting vendor relationships that will ensure your logistics business will run smoothly. You cannot afford delays caused by improperly structured partnerships, hence the need to handle everything through a thorough strategy.

The logistics sector is certainly one that offers many opportunities to improve. However, by using these tips, you can definitely use your resources more wisely, prevent wastage or money as well as goods, and turn your operations into a well-oiled machine that has the potential to grow.

By Raul Harman

Hi, I'm Raul, editor in chief at Technivorz blog. I have a lot to say about innovations in all aspects of digital technology and online marketing. You can reach me out on Twitter.