Managing logistics within a supply chain, large-scale event, or for all internal operations is the largest area of opportunity in many large scale companies. While logistics management is needed for a variety of different functions, the end goal is the same: to increase productivity, cut costs, and streamline operations. The below trends in logistics can help create specific and measurable success.
Industry Specific Technology
As electronic methods of communication and conducting business continue to advance, a greater need for industry-specific software develops. Industry-specific software can be ideal for businesses that have outgrown traditional accounting methods such as QuickBooks, yet are not quite large enough to have a full on- or off-site IT department. Since logistics management in a parts plant will be significantly different than inventory management in a perishable foods warehouse, industry specific software and tools bring a significant advantage. Even if the logistics you are managing are outside of the supply chain and warehousing fields, having a software program designed for the specific needs of your field is invaluable.
Automated Data Transfer
While you want to keep the number of software programs you work with to a minimum, it can be near impossible to find one software program to meet all of your needs. If there is not one individual program that can meet all of your needs, invest in programs that automate and integrate data transfer to assist you in completing reports, managing your P&L, managing progress, and managing your inventory in real time.
For many years a popular trend has been offshoring employees and manufacturers to cut costs and increase profitability. However, with the current state of the American economy, and many Americans still working their way out of financial turmoil, many companies are opting “reshore” their work. Reshoring is a process of bringing outsourced work back to the United States. Even if you are unable to reshore all of your work, any job brought back to American citizens will have an impact on the local and national economy. This can be anything from IT professionals to customer service agents to product manufacturers.
For businesses managing products sold directly to retailers, wholesalers, or as parts for other manufacturers, managing supply and demand will always be important. Businesses will always be forecasting to ensure that they don’t have too much product on hand putting them at risk for loss, and that they do not have too little product that they are not able to keep up with supply needs. However, the idea of demand management centers around the likelihood of products inevitably being offered to discount retailers. Though you don’t want to discount your products right away, businesses want to minimize loss by planning for discounting. Demand management can also forecast methods of transporting products to areas where those products are in higher demand. This could be locally, nationally, or worldwide. The costs of transporting to high demand markets once the product has passed its peak is also being factored into shipping and sales prices.
Advances in logistics are continually developing as businesses and industries find more effective and more efficient ways to operate. It is vital that your business stays current with the most up-to-date advances in overall logistics and industry standards. You can stay current by attending logistics and industry seminars and by hiring a logistics management expert.
This article was written together with Richard Craft, an MBA student who hopes to keep you better-informed about the world of business. He writes this on behalf of Diamond Transport Inc., your number one choice when looking for refrigerated trucking. Check out their website at diamondtransportinc.com/refrigerated-carrier today and see how they can help you and your business!