3 Tips for Creating Effective Logistics Strategies

Understanding the importance of a good logistics strategy is one step, however, you must put your plans into action. In order to make the best logistic strategy, there are three things or points that manufacture company should improve such as:


The first way to create an effective logistics strategy is to always connect with all parts of the supply chain such as suppliers, partners, and companies. Digital transformation enables manufacturers to design logistics strategies that connect them with suppliers, partners, and companies wherever they are, whether in the city or around the world. And that makes a big difference in several ways:

  • Procurement

Creating closer connections with suppliers and partners, then help them with the planning process, improve to manages the supplier risk, improve collaboration to support long-term plans for growth, and sustainability.

  • Transparency

Producers are no longer only react to logistical disruptions but they can anticipate them with create network models, create scenarios of what will happen next and adjust when conditions change.

  • Analytics

With direct access to data, manufacturers get a clear understanding of how well they are handling operations with metrics related to speed, inventory, and finance.

Smart Manufacturing

The second way to create an effective logistics strategy is to implement a smart factory or smart manufacturing. Smart manufacturing is about data usage and real-time technology anytime and anywhere that is needed by people or machines they need. The technology that makes waves in logistics is smart sensors.

Smart manufacturing is equipped with GPS, The smart sensor that will track the location of assets, vehicles, inventory, and even workers. Producer now uses intelligent sensor data to see the shipping locations, fleet trucks condition, and many more. Data helps to confirm and speculate the logistic flows in the warehouses, distribution centers, and retail stores.

Smart manufacturing also provides notification if the asset is not in the right location to warn the manufacturer of potential problems or even theft in the supply chain. This can facilitate the company.

Lean Manufacturing

The last but not least, to create an effective logistics strategy is to implement lean manufacturing. Lean manufacturing not only benefits what happens in the office but also can benefit in warehousing and fleet operations. With the high traffic and the importance of warehouses, the potential for leaning in these areas are very large.

For example, a common problem in many operations involves a lot of waste of time and large shipping costs. Getting lean it means involves creating smarter layouts for the inventory itself, building more intuitive ways to track orders, and building better communication between warehouse employees.

Outside the warehouse, lean manufacturing may involve finding more efficient routes for the factory fleet, tracking unscheduled stops or driver’s schedule, or simplifying the flow of traffic in and out of company facilities.

The good logistics strategy is important for companies who are dedicated to keeping service levels at the highest levels possible despite changes that occur in the supply chain. Remember, the goal of any logistics strategy is to provide the right product to the customer with the right quality, right price, right time, and in the right place by spending money as little as possible.

By reviewing logistics organizations, and making or reconfiguring logistics strategies, companies will be able to better meet the ever-changing demands of customers and end-user products.

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