Any business that has a supply chain needs logistics to succeed. Logistics is knowing how to get a product from one point to another as efficiently as possible. It sounds simple, but it’s a complex process, and it’s one of the most important keys to success. When you think about it, logistics affects everything.
Restaurants wouldn’t have food to cook if their ingredients aren’t brought to them on time. Groceries wouldn’t have products on their shelves. Hospitals wouldn’t have enough PPEs, and we definitely wouldn’t have masks to wear if it weren’t for logistics. Everything has gone through the supply chain. Thus, everything that we have wouldn’t be there if it weren’t for logistics.
Now that you understand how big a role logistics plays. You need to know how to enhance your logistics performance. Here’s how:
Optimize your layout.
It would help if you optimized the layout of your warehouse to better the general flow of things. Every warehouse should have a receiving station, packing station, staging station, and return station. Position your equipment and stations in a way that allows you all to work efficiently. The layout inside your warehouse is not the only thing you should worry about. The location of your warehouse is also a factor. It will also affect how fast you get products to the customers.
Have the right equipment.
The kind of equipment you have will also affect your performance. Take, for example, something as simple as doors. Would you still go for a manual roll-up door if you could have an automated high-speed roll-up door? You might not think of it much, but something as simple as that can greatly affect your performance. An automated roll-up door would get forklifts in and out of your warehouse much faster. Anything that saves you time is always the best option. When it comes to logistics, you should take the saying “time is money” seriously.
Choose the right order picking system.
There is plenty of order picking systems to choose from. There’s single order picking, batch picking, multi-batch order picking, zone picking, and pick and pass. Each system has its advantages and disadvantages. What may work for one warehouse may not work well for another. To know the difference between each system and which one works best for you, read more about it here.
Make use of logistics software.
We are living in the 21st century. So much technology is available to us. Why not take advantage of it? A great way to use technology (other than the logistics equipment itself) is to use software to help manage your logistics better. It can help you keep track of shipments, inventory, and sales, to name a few. There is plenty of software that can help enhance your logistics.
Set your key performance indicators.
Your key performance indicators or KPIs are what you use to measure your performance. They are a set of objectives that you aim to achieve to see how well your business is doing. You can base it on your finances, customer relationships, processes, or employees. Take profit, for example. It is one of the best KPIs. Customer satisfaction, number of product returns, and employee turnover rate are other examples.
Every company has a different set of KPIs. It all depends on the kind of business they run and their objectives.
People in the 21st century are so used to getting what they want immediately. You have logistics to thank for that. If you want your business to succeed, you need to enhance your logistics. To improve your logistics, make sure to do these five things.