Logistics Strategy and Monitoring: Where to start?

Logistics strategy and monitoring are fundamental elements for the survival of an industry or company that depends on the movement of goods. Clear guidelines are vital to increasing efficiency, reducing costs and improving customer relationships.
Therefore, throughout this article, we will address the reasons for creating and maintaining a logistics strategy and monitoring and provide an overview of how to make them. Join us and get ready for valuable content that will surely boost your business.

Why should I care about logistics strategy and monitoring?
Being concerned with logistics strategy and monitoring is essential for a company to remain operational and profitable. In short, they give the company an overview of its logistics process and enable the identification of opportunities for improvement.
Through them, it is possible to reduce delivery times and transportation costs and deliver a more complete and inclusive experience to the customer. Their implementation and execution are essential to maintain competitiveness in the market.
Many companies make the mistake of spending too much time on executing tasks and not enough time on defining coherent logistics strategies and monitoring, and the results are:
irresponsible use of resources;
customer dissatisfaction, and
avoidable losses.
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Where to start with Logistics Strategy?
The initial step in building a logistics strategy is to define your objective.
Among the possibilities, the following stand out: cost reduction, increased customer satisfaction and operational efficiency.
Although the objectives are not limited to these, they are good examples to explain this topic.
The next step is to map out how your company’s supply chain currently works.
You need to know how your suppliers operate and whether their bottlenecks or product quality impact your business.
Don’t forget to map the current logistics chain, which will also impact the logistics strategy.
Knowing how long the logistics chain cycle takes to complete is necessary.
Finally, it is important to understand your customers’ needs, as any change must present advantages for them.
By following these steps, your logistics strategy will have a greater chance of achieving lasting and effective results.

Identify your main bottlenecks
Identifying bottlenecks in the logistics chain is impossible without first collecting solid data showing the problem’s real scale.
To do this, it is worth looking for financial data and mapping the times for receiving and delivering materials.
Keep in mind that bottlenecks are not necessarily within the company.
They may be found in the customs clearance, storage (after clearance) or inefficient shipment or cargo services dubai management stages.
For this reason, interviews should be conducted with employees and Logistics warehouse services dubai providers, as they can contribute valuable insights into the operation.
Create action plans for bottlenecks.
After identifying bottlenecks, action plans must be created to eliminate or minimize them.
To do this, creating a multi-disciplinary team that can see and “attack” the problem in different ways is a good idea.
Additionally, clear, measurable goals for each step of implementing the action plan should be created and reviewed continuously.
This will prevent the problem from being forgotten and allow changes to be made if the plan is inadequate. It will also be possible to map the effectiveness of the action plans.
Finally, be flexible with plans and people, as changes are challenging, and the first action plan will not always be ideal.
Create processes
Creating a logistics process requires continuous mapping and monitoring of operations.
This task is easier when those responsible for each stage, their assignments, and deadlines are defined.
Furthermore, it is necessary to train the team and condition them to prioritize the solution instead of focusing on the problem.
How to do logistics monitoring?
Logistics monitoring is the stage in which all the information we have listed is interpreted.
The first thing to know about logistics monitoring is that it needs to be done regularly. Otherwise, it will be impossible to identify problems or opportunities for improvement.
The second point is to combine it with technology, as the market has several options to meet the most diverse needs.
See below some more points that can improve your company’s logistics monitoring.
Use Service Level Agreements with your suppliers.
Better known as SLA, this metric indicates the performance of certain deliverables.
Both external suppliers and internal employees can adopt this resource.
SLA enables the company to design action plans to improve operational efficiency and allow it to work only with the best suppliers.
To set up an SLA, it is necessary to define the company’s objectives in terms of cost and performance, among others.
It is necessary to create indicators within the reality of the company and the market; therefore, data about the market must be collected to maintain its metrics.
There is no point in wanting a 2-day SLA for manufacturing a material if, after issuing the order, any company needs at least 15 days.
Receive reports with alerts.
An SLA without monitoring is irrelevant, so the suggestion is that the reports inform which indicators are deviating from the stipulated target.
An incomprehensible report without performance alerts will never identify problems before they become a crisis.
We also emphasize that investing in systems that perform these measurements automatically is a good option if financial resources are available.
To conclude this point, we emphasize that it is possible to create alerts and reports for a wide range of purposes, for example:
Customer Satisfaction, with reports on complaints and compliments received within a period;
Logistics cost, which will show how close or far your company is to its financial target and where the greatest resources are being spent;
Logistics cycle time will display the lead time of a given logistics process.
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Logistics Strategy and Monitoring is a complex topic, and it is fundamental for a company’s survival and prominence in the market.
Delegating this function to our team will allow your company to focus on its core business while we set up and execute a rigorous and efficient logistics process. Article Source: Internet!