The Elements of a Sound Logistics Strategy

The Elements of a Sound Logistics Strategy

A logistics strategy is essential for ensuring your company can meet every business’s ultimate goal: delivering its customers what they want, when they want it, and in the most cost-effective manner possible. When you put a formal strategy in place for logistics, it will be easier to assess the effects of any changes and keep disruptions to a minimum.

There are three areas that should be considered when developing your logistics strategy. First, you need to keep the business’s high-level objectives in mind at all times and ensure they’re being met. You also need to take into account structural issues, such as the distribution centers and warehouses involved and which products to produce at which plants. Finally, it’s important to have a solid plan for implementing the logistics strategy that includes introducing new policies, change management plans, and the development of information systems.

Areas to Consider

It’s essential that the strategy you develop looks at a wide range of components. One big factor is transportation. For example, you need to ascertain whether current transportation strategies are helping service levels. Take a closer look at competitors’ offerings and see if you can make any adjustments if their service is outperforming yours. Consider your use of outsourcing and whether a third-party logistics provider could help improve service.

Another big area that warrants close attention is your management of information. Is the information used for your logistics organization accurate and in real-time? If not, it’s time to make an investment in improving this crucial aspect of business. After all, inaccurate data will only lead to poor decisions.

Keep these guidelines in mind, and be aware that your logistics strategy should be constantly evolving. If your business changes—for example, if you need to use suppliers located in a different part of the world than your current ones, be sure to review your logistics strategy and adjust it accordingly.

Need help with your logistics strategy? Contact us… we’re always happy to help!

This blog post was based off of an article by The Balance Small Business. Read the full article here.