Logistics Planning Blogs - LPC International

The fact that Amazon was considering drones as a delivery channel highlights how important that giant considers retail supply chain management to be. That particular innovation focused on only one aspect of the process – speed of delivery to customers (at as low a cost as possible). Optimising the supply chain is not just about reducing costs. It also enhances competitiveness by making your proposition more attractive and winning market share. In the fiercely competitive retail and eCommerce space, winning often equates to faster and cheaper delivery. How well those costs are absorbed into product pricing depends on smart and proactive supply chain management.

As a logistics or warehouse manager, you appreciate that you have an expensive but critical facility at your command. Is there scope for improvement? Have you considered every avenue of exploration to realise even greater efficiencies, productivity and cost savings?

What tactics and processes do logistics consultants utilise to improve the efficiency of a client’s supply chain? And how can recommendations be implemented by a manager? While the end results are improved logistics planning processes, let’s examine how a typical consultant would approach the challenge of correctly identifying areas worthy of attention and improvement.

The normal approach to a skill shortage in a company is to hire someone or to train someone internally. This can be a challenge for many industries and business sectors to find people with the right skills, while training someone can take a significant amount of time. However, there may be an alternative, hiring someone or training someone is essentially having more of the same. This might be the most appropriate or possibly the only solution to some situations, but in others changing the processes, systems and methods employed within the warehouse or facility first might reduce or remove the skills shortage in the first place.

Black Friday however busy is just one day in your peak period. It might be the busiest day, it might be your peakiest peak but it is still one day and the responses you deploy to deal with one day or even a couple is not necessarily the responses you need to successfully negotiate and manage your whole peak period. However planning for peak will mean that Black Friday becomes a more “normal peak”.

As a warehouse professional you probably do not have much input into how marketing and sales work and generate the demand on your warehouse. This plan looks at the actions and areas within your control and areas where input from the rest of the business can help.

Industry 4.0, the so-called fourth industrial revolution, has already begun and is being rapidly adopted by leading companies. The reasons are simple – greater revenues and reduced costs through digital interconnectivity between machines, systems, processes and suppliers. The technologies involved can be daunting when viewed as a whole but, in any case, technology is only part of the story. Adapting appropriate mind-sets and processes must be progressed first before technology can be overlaid successfully.

As experts who have been assisting companies for over 30 years with their Transport Solutions, Warehouse Design & Operations, Supply Chain Strategy and Management and more, we have a good understanding of why clients hire us and the value we add to their operation.

The warehouse is a big ticket asset with expensive running costs. Logistics managers typically strive to improve efficiencies while also reducing costs. That can seem impossible at times but it’s just like the old adage about the best way to eat an elephant – one bite at a time. Small increments do add up to worthwhile improvements over time and one initiative can often lead to an unexpected positive spinoff that was not foreseen. Here is a simple four step plan to get you started:

Automating your warehouse can deliver very significant improvements in productivity and efficiency. It is possible to reduce costs while improving safety and improving productivity.

One would think that the more data we have available, the better would be our decision making capability. However, we are at risk of being swamped with data because of the immense capability of disparate devices now capable of being linked through the Internet Of Things (IOT). All manner of security, location, sensor and tracking devices feed a constant stream of real time data to be stored, categorised, assessed and eventually analysed – possibly. Identifying the wheat from the chaff is a vital first step to optimal utilisation of this Big Data.