How To Develop a Comprehensive Logistics Strategy
Most companies face the challenges of balancing the transport demands with the supply and its management. Modern logistics comprises operative logistics, analytical logistics and management of logistic networks. Central task of operative logistics is the efficient supply of required goods at the right place within the right time. Tasks of analytical logistics are designing optimal networks and systems, developing strategies for planning, scheduling and operation, and organizing efficient order and performance processes. Logistic management plans, implements and operates logistic networks and schedules orders, stocks and resources.
Logistics Strategy basically focuses on evaluation of all the possible means of product distribution to find the quick, most cost effective means and thereby achieve firms objectives. While developing a logistics strategy, it is important to look into the following aspects:
• Transportation: Does the current transportation strategies help service levels? Are you able to achieve the organizational goals set?
• Outsourcing: What outsourcing is used in the logistics function? Would a partnership with a 3PL company improve service levels?
• Logistics Systems: Do the current logistics systems provide information that is required to successfully implement a logistics strategy or are new systems required?
• Competitors: Competitors products and offerings. Can changes to the company’s customer service improve service levels?
• Information: Is the information that drives the logistics organization real-time and accurate? If the data is inaccurate then the decisions that are made will be in error.
• Strategy Review: Are the objectives of the logistics organization in line with company objectives and strategies.
Over and above, firstly the company needs to have a Holistic approach in handling the supply chain. There should be network of information from one end of chain to the other. Any important decisions taken should be communicated to all the levels. Also, Keep up-to-date with what is going on in your and associated industries. Attend industry conferences. There is always scope for improvement. Try to look into the gaps, find out reasons for loopholes and try to fill them as soon as possible by taking suitable measures. Use your networks and contacts to help benchmark business processes. Understand technology and try to implement them to test its efficiency. This will enable the organization to have a good understanding of available tools, systems, and capabilities as technology is the key to SCM.
A successfully implemented logistics strategy is important for companies who are dedicated to keeping service levels at the highest levels possible despite changes that occur in the supply chain. Understanding customer needs, keeping the company updated in all necessary logistics fields, implementing new ideas and setting a benchmark for the company to reach a challenging level is the key to develop a comprehensive and successful logistics strategy.