Logistics and transport management are interrelated with each other in the supply chain context. Proper transport management leads to successful order fulfillment. However, this can’t be achieved without the right logistics strategies. In this article, we’ve summarized a few tips that you can implement for more efficient logistics and transport management.
1. Proper Planning & Preparation
The first thing to do for efficient logistics and transport management is to make proper plans. There are many elements involved in planning, from procurement of goods, storage of goods, to the delivery of goods.
Other parameters that must be taken into account are time, transportation, and the costs. Supply chain operators must be able to establish a comprehensive workflow to ensure well-run operations. The purpose of planning itself is to achieve maximum results and profits in the least possible time.
Although great planning is ideally supposed to bring perfect outcomes, a good manager must be able to prepare for unexpected circumstances; such as shortages, shipping delays or transport damages.
When all the components involved are run manually and separately, it will be difficult for the manager to detect issues, monitor progress, and take corrective actions. Therefore, it is critical to adopt a centralized system that integrates all the processes.
2. Use an Automated Transport Management Solution
There is no easier way to streamline your transport management than to automate it. An automated transportation management solution makes the process of transporting goods simpler. Operators will be able to know which transports are operating, where they are located, and what is keeping them in transit.
In addition to facilitating transportation tracking, great transport management software also provides other facilities for logistics managers such as:
- Record and arrange trips
- Track fuel usage per vehicle
- Assign and track drivers
- Track cargo based on delivery schedule
- Generate complete, real-time analytical data
3. Strengthen Your Staff Performance
No matter the department, your staff are the people who play an important role in the growth of your business. Whether it’s the procurement manager, delivery guy, or warehouse operator, everyone in each department must be able to work productively and simultaneously in order to achieve optimal results.
Therefore, it is important for you as a leader to provide regular training for your staff to improve their abilities and agility. Make sure they understand the company’s SOP, their responsibilities, and the technology used by the company.
Make sure you have strong HR management, which prioritizes the needs and development of your employees. Consider using a centralized HRM system to help the HR manager monitor employee achievements, conduct employee satisfaction surveys, and assess employee performance.
4. Optimize Your Warehouse Management
Logistics operations can’t run smoothly without proper warehouse management. Storage of goods and arrangement of warehouses affect the shipping process. Therefore, it is important to ensure that all items are arranged very well.
Store perishable items in a cool place (or in a fridge for food products). Place high-demand products in easily accessible areas. Make it easy for forklifts to go through each aisle to speed up the picking process and use an inventory management system integrated with a barcode scanner to make it easier to record incoming and outgoing items.
For effective warehouse management, please read the following articles:
- How to Optimize Warehouse Management & Improve Fulfillment
- How to Improve Order Picking Productivity in Your Warehouse
- 7 Warehouse Management Practices to Improve Inventory Control
5. Keep Operating Costs Under Control
Controlling operating costs is a great way to improve efficiency in your logistics and transport management. First of all, you need to analyze all expenses related to your transportation and logistics. Know what factors are contributing to high expenses.
Does your delivery route cause your fuel usage to be wasteful? Is your improper procurement that causes high inventory costs? Or is it the packaging of your products? These are a few things you need to figure out.
One of the most effective ways to analyze and save on operating costs is to adopt automated solutions like an ERP system. This software automates the entire process, ensuring each process runs quickly and precisely so that any errors that lead to losses can be minimized. In addition, the system also enables you to estimate income and expenses for a certain period so that you will be able to allocate your budget more wisely.