Logistics is so important within a company that it can even affect other areas or even the overall growth of a company. For example, it is of no use to increase your number of customers if you are not able to supply with the orders that you are making. It is a mistake that unfortunately happens more than usual and can end up causing you to lose all those clients that have cost you both earn and bad reputation in the sector, which will make it difficult to find more customers in the future.
There are still online businesses that do not give the emphasis to the logistics process. Anyone who understands how to make profitable processes such as storage, transportation and distribution, will be one step ahead of their competitors.
In order to optimize your logistics processes today we bring you some basic tips on how to develop and optimize these processes:
Organization
Tips to be more efficient in the logistics of your business
Reducing logistical costs often depends more on an improvement in the organization than on a large investment. Everything is to have a good control of all your inventories, to know how to organize your warehouse well or to improve distribution times and services.
Quantity
The key is the “how much”. Everything has to be measured to the millimeter; How many products you have in the warehouse, how many and which are your raw materials, how many products you deliver, how long it takes to deliver your products and how long it takes to make a sale. Once you know all this, you will have a more global vision on the costs and thus apply plans of development and improvement.
Using Proper Packaging
It may seem secondary but the material you use to package and distribute your products is essential. Depending on what you are distributing, certain materials or raw materials will do better or worse, but generally look for materials that are easy to store, have reduced costs or can be reused.
Constant communication
Communication within a vital online business. Not only with your customers, but with your employees and suppliers. Being well connected will allow you to detect errors or problems in a short time. You can create an intranet, so that the different sectors of your company are connected to each other and you are also connected.
Use of models to negotiate
As your business grows, more people will need it. It is likely that sooner or later some operational decisions will not be made by you and this will fall on another person. In this sense it is important that you create a series of lines or guides to negotiate, develop and promote short-, medium- and long-term relationships between customers and suppliers.
Supply Chain Design
Tips to be more efficient in the logistics of your business
Another key is to design and develop the entire supply chain in your business, to know what parts make up and the staff in each part. This will help you set goals and set budgets.
Demand management
If you want to guarantee the availability of your products to consumers, it is very important that you look for the balance between supply and demand. This is necessary at the time you plan your sales, production and distribution processes.
Distribution network
Tips to be more efficient in the logistics of your business
Think that it is of no use to you to produce more if you are not going to supply and distribute the product. Sometimes it is more important that you spend on transportation, perhaps buying a van and a carrier, than on more machinery to produce more. Everything must grow at the same time, you do not have to have a large distribution network and not have stock to distribute.
Operating processes
Buying supplies on a massive scale will always be more cost effective than buying them separately. You will save and you will be able to distribute your products in the times that they touch. Not only the supplies, also the raw material that you need and the containers or material that you are going to use to package your products.
Management indicators
The supply and demand will be essential indicators in which you will have to also look constantly to improve the different distribution processes and increasingly be able to respond to the needs of consumers in the shortest possible time.
Visibility
Getting ahead of consumers is also key, trying to keep them from complaining and taking action before they do. That is why it is fundamental that you have a total view of the situation of the products at each step of the supply chain, have the information instantly of each product and each logistics process