10 Steps to Develop a Winning Logistics Strategy

Don’t be intimated by the global marketplace. The principles of cost reduction, efficiency, and quality never get old or out of style. Use these tips to build a successful logistics campaign and improve customer satisfaction.

1. Use volume to leverage price. Nothing unusual here, negotiate based on forecasted volume. If there is a better margin of cost savings using future orders, always use that figure to your advantage.

2. Define what you are trying to accomplish. Start a campaign with a definite objective, whether its speed, accuracy, or both. Different goals yield diverse strategies. A supply chain focused on speed will look different than a supply chain centered on cost reduction. Understand and articulate these objectives to your team for a customer-centered process.

3. Focus on your competencies. If you’re not comfortable providing value-added services, such as pick and pack or same day shipping, then don’t offer it to your customers. Improve your strong points, and nurture these skills to set you apart from the competition.

4. Utilize the technology available. The customer service revolution was brought in by advances in barcoding, order tracking, and social media. Use public platforms to increase accuracy and responsiveness. Many third-party companies use platforms such as instant messenger and Twitter to provide real-time updates to their clients.

5. Fine tune your warehouse and processes. An organized and efficient warehouse will reduce cost and save time. Quickly identifying products and staging them for outbound is one of the most effective ways to improve customer satisfaction. The ability to efficiently process requests reflects on your overall capability.

6. Stay away from decision making. Making important decisions seem natural to many executives, but proficient companies hire talented managers to take care of inefficiencies. Take time to vet properly in-house and other coordinating managers to ensure that they are on board with your company’s objectives and strategy.

7. Focus on your customers. Develop successful relationships by aligning customers and service providers to gain a competitive advantage. Connecting the dots between a client’s needs and the appropriate suppliers pays dividends in a long term relationship.

8. Conduct risk and resilience assessments. Modeling different global supply chains through risk assessments will help you identify weak points and potentials areas of disruption. Remember it’s not about protecting assets as it is fulfilling contractual obligations and staying in business.

9. Segment your customers and products. Dividing your customers, processes, and services, into individual supply chains creates maximum value. This distinction generates separate environments for analysis and assists in streamlining overall efficiency.

10. Learn from your mistakes. No one is perfect; no supply chain is either. Always reflect on decisions and actions to improve efficiency and your bottom line.

Comments are closed.