Managing a warehouse has never been an easy task and the growth of e-trade, which gives clients the chance to buy products from anywhere in the world at any time and every day, has made it even harder.
Logistics management safety has a direct impact on a company’s competitiveness and has, thus, become a central issue for corporate strategies.
Guaranteeing the physical safety of assets is not enough anymore, today, companies must pay special attention to their information systems due to cyberterrorism and criminal threats.
Transport is considered the core of supply chain because of the vast amount of decisive processes that derive from it – transfer, supply, and distribution; and for the competitive factors it affects – the cost of logistics and customer service.
One of the most common mistakes companies make is to dismiss the logistics operations as part of the business’ strategic decisions; therefore, they do not match these operations to the commercial goals, and they neglect to develop metrics to measure the costs they generate.
Companies are always looking for competitive advantages they can offer their clients to meet their needs more efficiently. They wish to save space, time, and money as well as keep their inventory low while adapting to the ever-changing purchasing behavior of their clients.
One of the factors affecting the profitability of your company is an excellent management of its resources.
To guarantee profitability for your company’s logistics and supply chain you must pay attention to several KPIs that help you make the right decisions and optimize processes.
Generally speaking, when we buy or sell internationally, different interpretations may arise according to the rules of each country. This lack of a common conceptual framework may lead to bad negotiations and misunderstandings in the commercial and logistics operations. Using incoterms lessen these risks.
When it comes to choosing which transportation to use in their logistics processes, companies should consider many variables, especially when the need to mix different means of transportation such as sea, land, and air, arises. Understanding the different existing modalities, their differences, advantages, and disadvantages, may help decide which is best for a specific company.
In a manufacturing company that manages its own warehouse, having excess inventory is a common issue that logistics directors must deal with because it affects both costs and customer service.