Logistics Planning Blogs - LPC International

Reducing costs while improving reliability and customer satisfaction is how one can sum up the ideals of a Supply Chain Consultant. It’s what they do. How that is achieved is a mixture of strategy and tactical steps that come together in recommendations and a blueprint for moving forward. The potential to enhance the bottom line in a sustainable manner, while driving out greater efficiencies, is one of the main justifications why organisations engage experienced consultants. These are usually the more forward looking enterprises who understand that getting ahead of the competition and staying there often requires innovative thinking combined with a truly deep understanding of the supply chain and procurement processes.

Logistics consultants are usually engaged to deliver a specific outcome and should utilise innovation as well as relevant experience and a track record in solving issues like yours. Consultants will tackle the assignment according to their own personal style, knowing what works best.

An additional significant advantage of engaging a consulting firm is that they will have a team of specialists to draw upon as the need arises, which effectively means more resources. A good consultant will not be afraid to challenge a client's preconceived notions or planned actions that need to be reassessed - all in a thoroughly professional and non-confrontational manner.

A warehouse is a very large cost item, in terms of balance sheet, facility running costs, and equipment and staffing. Day to day utilisation costs can be minimised through efficiency of design that makes all operations as fast and effortless as possible with minimal materials handling. That implies that investing time and care at the design stage reaps rewards for the next 10 or 15 years. The converse also applies and unavoidable excessive overheads may be incurred on a daily basis through badly laid out and inadequate design, or through adopting a facility just because it exists and appears to provide a fast and convenient solution.

Transport is both a critical element of the end to end supply chain as well as a major overhead. Any flaws or inefficiencies result in a range of negative outcomes from loss of competitiveness to a drain on finances that can pose a significant risk to the business if not remedied. Constant measuring and optimisation is the surest defence. On the positive side, optimisation is also an attack tool, increasing efficiency, competitiveness and service levels while contributing directly to the bottom line through reduced operational overhead. What’s not to like about that?

In a nutshell, a Logistics Consultant will identify, where they exist, ways for you to improve the efficiency of your existing distribution network and operation, boost productivity and help save on staffing and resource costs.

Every business is different and has unique requirements, constraints and operating conditions. However, any SME E-commerce enterprise undertaking their own fulfilment will have a storage and picking and packing facility and a distribution network – a warehouse and a fleet of trucks (or a 3PL).

Transportation is a key element in logistics – getting the product into your warehouse and out again to satisfy customer demand in a timely manner and to the correct destination. It can be compared to an ongoing battle against mishaps, a battle that recurs on a daily basis with a vast range of potential disaster just waiting to upset the best laid plans.

Consider this fact: a single strategy change, process tweak, or resource realignment might save a large company 1% of its logistics and supply chain overhead. That could well map to a 10% saving in a smaller company. This principle underlines the simple fact that the objective of a reputable supply chain consultant is to save you money, thereby increasing your profits. Whether it is expressed as increasing efficiency, enhancing productivity, or successfully enabling a new initiative, it really can be boiled down to reducing costs at the end of the day. Any company of any size will benefit from the expertise and wide experience of a consultant.

The King of Egypt 4,000 years ago would have asked “How much grain do we have in storage?” Heads would have rolled if he could not get a reasonably accurate answer (grain lasts about 4 years in good storage).

The Egyptians had a simple WMS based on stock inwards and outwards, transfers and wastage, recorded on clay tablets or on the walls of their granaries. Any type of storage facility simply has to have a warehouse management system, WMS or otherwise it is nothing more than a disorganised asset dump.

The transport system is the pivotal element in a logistics chain and can consume perhaps one third of the total cost of logistics. The transport system has an overarching impact on the overall performance of production procedures right through from manufacturing to distribution. Given its critical role, transport planning is essential and good planning reaps rewards in efficiencies that add to the bottom line.