Optimising business operations is crucial, especially in logistics. Every company in this field is constantly searching for ways to streamline processes, reduce costs, and improve efficiency. By focusing on enhancing logistics performance, businesses can achieve significant advancements in their overall operations.
Are you looking to elevate your business to new heights? If so, discovering and implementing effective logistics strategies is key.
In the video below, I explore the top 10 strategies that have been proven to boost logistics performance, helping you stay ahead of the competition.
Watch on to learn more!
You might wonder how I chose these 10 tips. Over the past 30 years of consulting for companies worldwide, these strategies have consistently proven to enhance logistics performance. I’ll save the best for last and provide extra resources at the end to help you achieve even better results. While you might already use some of these tips, I’m confident you’ll find a few new ones that will be very helpful.
Why Logistics Performance Actually Matters
Before we get into the specifics, I want to address something I see regularly. Many businesses treat logistics as a cost centre—something to be minimised and forgotten about. Honestly, this is backwards thinking.
The companies that consistently outperform their competitors understand that logistics is a value driver. I mean, think about it: your logistics operation is often the final touchpoint with your customer. Get it wrong, and all the work your sales and marketing teams have done goes out the window.
I’ve worked with organisations where improving logistics performance by just 15% translated into millions in bottom-line savings. And the thing is, most of these improvements didn’t require massive capital investment. They required focus, measurement, and a willingness to challenge how things had always been done.
Logistics Performance Tips
1. Master Your Inventory Management
Effective inventory management is the backbone of logistics performance. Many companies still grapple with stockouts and excess inventory. Start with an ABC analysis by line item, not just by product group. Focus on reorder points, minimum order quantities, and pack sizes. Accurate master data is crucial—it’s the key to managing your inventory and logistics performance efficiently.
2. Optimise Your Transport Fleet
If you’re running a fleet with more than six vehicles, routing and scheduling software is a must. This tool helps you optimise delivery times, vehicle capacity, and time utilisation, leading to significant savings, especially for larger fleets. Investing in this software can streamline your operations and boost logistics performance.
3. Develop a Robust Supply Chain Strategy
Surprisingly, around 40% of companies lack a documented supply chain strategy. Even a simple one-page document outlining clear objectives, enablers, KPIs, and targets can align your team and improve logistics performance. A clear strategy ensures everyone is working towards the same goals.
4. Design Your Warehouse from the Inside Out
Warehouse design is often overlooked but critical. Many companies select their facility without fully understanding their storage needs. Instead, design your warehouse starting with the inside—consider storage requirements, handling needs, and ideal footprint. This approach ensures you choose a facility that fits your needs, enhancing logistics performance.
5. Take Your Time with Logistics Outsourcing
Searching for a new 3PL partner? Give yourself ample time—ideally 4-6 months. Rushing the process can lead to poor partnerships. Collaborative tendering can yield better results. A well-chosen partner is a cornerstone for improving logistics performance.
Watch the full video above to learn all the tips and get detailed information!
The Implementation Challenge
Here’s what I’ve noticed over three decades of doing this work: knowing what to do is rarely the problem. Most supply chain professionals I meet are smart, capable people who understand the theory. The real challenge is implementation.
A guy running logistics for a furniture company once told me he’d attended dozens of conferences, read all the books, knew exactly what needed to change. But getting those changes to stick in his organisation? That was another matter entirely.
This is where having external support can make a genuine difference. Not because consultants know more than your internal team—often they don’t—but because they can dedicate focused time to initiatives that otherwise get pushed aside by day-to-day firefighting.
If you need any assistance, don’t hesitate to book a call with me: https://www.logisticsbureau.com/scs-book-a-call/
