Managing shipping logistics for your business can be complex, requiring synchronized systems and workflows that move your products from inventory to the package to the customer’s door. From point A to point B, errors and inefficiencies can occur at any process step. These errors and inefficiencies include out-of-stock items, order-picking mistakes, and packages damaged or lost in transit.
Following logistics best practices can minimize error risk, increase cost efficiencies, and ensure a positive customer experience.
Following a Logistics Management Plan
Logistics management can overwhelm you. Many moving parts must work together for success.
You could begin your logistics journey by buying boxes. You could start by sending a bunch of inventory to your garage. Instead, starting by creating a logistics management plan might be better.
For this first step, you’ll want to understand the challenges you’re facing (or likely to face) so you can craft a plan to solve them. You’ll want to consider your goals. Are they cost savings? A reduction in errors? A better customer experience?
Research the resources, technology, partners, and equipment needed for effective operations.
Some things to consider:
- Warehouse size
- Shipping supplies
- Carriers
- Order and delivery tracking technology
- Shipping metrics to monitor
Track Your Data
Once you get up and running, you’ll want to track all your data on order fulfillment accuracy, delivery speed, damaged and lost parcels, errors, and costs. This will help you continuously improve your operations, reduce inefficiencies, and save money.
You may realize that you must switch packaging suppliers because you see too many damaged packages. You should update your picking and packing processes if they’re too slow or cause too many errors. If costs are too high, consider mixing carriers.
Your logistics management plan should be based on achieving goals and solving problems identified in your process. Your decisions should always be based on real data.
Partnering with a Third-Party Logistics Provider
Suppose our first best practice already has your head spinning. In that case, you’ll love this alternative: partnering with a third party logistics provider that can manage your business’s shipping logistics for you. From warehousing and inventory management to order fulfillment, shipping, and data tracking, they can manage the entire process from start to finish for you.
This not only ensures that experts with deep knowledge manage the process. It also means you can focus on the parts of the business that you may be more passionate about than logistics.
Implementing a Warehouse Management System (WMS)
If it’s an excellent practice to make data-based decisions to improve logistics operations, you must track and monitor data somewhere. That’s why warehouse management systems are critical. This software program provides full visibility into the shipping process, from order to delivery and every step in between. It’s especially critical to your operations if you plan to operate out of multiple warehouses.
If you partner with a logistics provider, they’ll give you access to this software.
Automating Logistics
Logistics can be time-consuming, arduous, and prone to error. That is when humans are involved. When you leverage supply chain automation, all process steps can become more accurate and efficient.
Automated fulfillment functionality, for example, automatically sends customer orders to the closest fulfillment center to be picked, packed, and shipped.
Voice-picking systems leverage speech recognition software to direct warehouse staff through picking tasks.
How much time could you save with goods-to-person warehouse automation, which uses autonomous mobile robots to bring warehouse products to warehouse staff?
Pick-to-light systems, too, can improve efficiencies and reduce errors by using lights to guide workers through the picking process.
The huge business benefits of supply chain automation make it obvious why this is a must-follow logistics best practice today.
Continuously Optimize Logistics Management
It is a significant achievement to create a supply chain. Coordinating suppliers, warehouses, and partners, implementing the right technology, and building all the processes that maximize efficiency is a lot of work upfront.
However, logistics cannot be a one-and-done process. Once you’ve started following your logistics management plan, you need to track the data that will optimize the process.
You won’t get everything 100% right the first time. Even if your operations are pretty successful, a few steps can likely be improved. This is whether to save money, improve delivery times, or reduce customer complaints. Plus, there’s always new technology coming out that you should test and consider implementing.
That’s why continuous optimization is vital to effective operations over the long term.