6 Tips on How to Develop a Winning Logistics Strategy

By Edward Lin

The distribution industry is becoming more important than ever. Almost every company requires help with logistics these days. The ability to deliver products in their best shape, irrespective of size or nature, is turning out to be a major business driver. Any company that is into products or services require an organized delivery module to keep its customers intact. Logistics companies can make the most out of the opportunity if they reengineer their network and implement innovative strategies pertaining to the global economy.
Continued improvement is necessary to build a cutting-edge logistics service. That said, let’s take a look at the six best tips you can use to develop winning logistics strategy.

Warehouse Fans

Warehouse Fans

1. Make your services accessible – Outline your services with the help of a website and create online windows whereby your prospective customers can easily find you. Carve out every possible way whereby your customers can easily connect with you.

2. Keep your customers informed – The best way to become a favorite of your clients is by keeping them informed about realtime movement of their shipment. Adopt automated communication technologies to make reporting cost-effective and fast. The DMS or delivery management software is one best way to maintain tracking details on the go. You could find several startups that provide this type of enterprise-level SaaS (Software as a Service), especially for logistics companies.

3. Stick to your corporate principle – According to Kenneth B. Ackerman, editor and publisher of Warehousing Forum , your logistics strategy should be subordinate to your corporate strategy. Is your corporate strategy based on ‘quality’, then the logistics goal should be to achieve 100% accuracy in delivery. Is your corporate strategy based on ‘low price’, then the logistics strategy should be to move goods at the lowest possible cost.

4. At-par technology – Are you using the latest technology that has been created in the field of distribution and logistics. Accuracy and responsiveness increase with every technological development. Make sure you don’t lag behind your competitors in using tools and equipment that will facilitate the network. For instance, some companies use automated robots instead of humans to move inventories around their warehousing. Another example could be the RFID (Radio Frequency identification) tracking technology that uses radio frequency to transfer information from tags attached to the shipment.

5. Efficient warehouse operation – From maximizing storage space to creating the best environment for different kinds of products, an efficient warehouse operation is the key. For instance, companies like RichResources who are into cold chain logistics have to create extremely low temperatures, sometimes as low as -30degrees, to store perishable food items in their best shape.

6. Seeing is selling – Showcase your operations to your customers by displaying your current logistic functions. Take real photographs of every aspect of the distribution system and include appropriate content to give your customers a fair idea of how good you are in this stuff.
Keep updating your plan by conducting regular assessments. A winning logistic strategy is a work-in-progress and requires constant amendments.

Image Credit: janfan

Edward Lin  is a logistics professional with 6 years of experience and blogs over at http://richresources.sg/. He geeks about logistics-related matters and bores his friends and wife with it all day.

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