Logistics Planning Blogs - LPC International

There are two reasons why you should consider a Logistics Professional. The first is experience, even though your in-house logistics managers may be best of breed and perform to your highest expectations, they can rarely enjoy the breadth of exposure to numerous learning situations from other industries and operations across the globe that a logistics consultant will have.

Transport and logistics is a large cost for any business that relies on distribution to fulfil orders. That cost is factored into overall marketplace pricing for products and services – more cost means higher prices and vice versa. Tie that in with the modern demand for speed and instant fulfilment and it almost amounts to a formula for a business strategy: cheaper and faster.

Logistics consultancies do not generally post a rate card for a very good reason. Every assignment is different, requires different expertise and experience, and often varying levels of seniority amongst the consultancy staff. In other words, there is no “one size fits all”. On the other hand, a client does need to know what the probable cost is going to be and is quite likely going to shop around for what seems to be the best deal.

Every business at some point will consider designing or redesigning a warehouse facility to fix some bugbears and inefficiencies, to cater for expansion or simply as a result of relocation. This can be seen as a godsend by warehouse managers and an opportunity to start from scratch with the benefit of experience and hindsight.

The value of logistics consultants is in the knowledge and breadth of experience they bring to your operation. Typically, in-house logistics managers know their own industry, supply chain and logistics operation down to the finest level of detail, which is a vital necessity.

A good Warehouse Management System should be capable of doing far more than just keeping tabs on stock levels, although doing that accurately and in real time is a critical function. No doubt, your organisation is taking advantage of the most important functionality to maximise its ROI.

Any consultant is expected to supply specific expertise and deliverables as per his or her terms of reference, and that is their responsibility during a consultation assignment.

The transport element of an end to end supply chain impacts on so many other aspects of the overall operation that it can rightly be classed as a critical function. Nevertheless, controlling its costs and efficiencies requires a careful balancing act to maintain customer satisfaction levels, contractual obligations and the needs of the operation. It needs constant monitoring because the parameters like demand, market conditions, loading and route optimisation are always changing.

To the uninitiated, it may seem that warehouse design is not exactly rocket science. However, the devil is in the detail and a recurring excessive cost can easily be caused by a flaw that is experienced perhaps hundreds of times a day when operational, each one costing a minute or two. Poor design may be difficult to detect because the operation runs smoothly, possibly better than previously, and the weak points about the design are simply not immediately obvious. Detailed planning is the key to success.

lementing a Warehouse Management System that does what you need can greatly enhance productivity and throughout as well as reducing wastefulness that costs money. It enhances customer satisfaction and employee morale and provides a management window into the state of health of one of the more impenetrable and expensive cost centres of a manufacturing or distribution operation.