Logistics management is one of the most important aspects of running a business. Logistical mistakes can create production bottlenecks and significantly detract from the efficiency of your company. This will inevitably cut into your bottom line over time if you don't put effort into remedying logistics management errors.
The following are seven logistics management mistakes to avoid to make running your business more convenient and practical:
Neglecting your inventory
Running out of inventory regularly creates huge logistics problems and could lead customers to look elsewhere for a company with product in stock when they want it. You need to keep your inventory efficiently well stocked to manage your logistics processes effectively.
Not putting enough effort into making it easy for employees/departments to communicate with one another
Communication is essential to efficient logistics. You need to make sure you're facilitating communication between employees and between different departments at your company to know that logistics obstacles are identified and overcome.
Handling logistics without making a clear plan
If you haven't set aside time to make a logistics plan, you're not going to be operating as efficiently as possible. Identify a logistics manager for your facility and have this manager conduct research, create an efficient plan, and tweak it to improve it over time.
Having no backup plans when obstacles come up
Obstacles are inevitably going to come up that set your plans off track. You need to have some contingency plans in place to foresee potential obstacles and give you alternative plans on how to handle them.
Analyze your supply chain to look out for the obstacles that will come up. The more prepared you are for unpleasant obstacles, the more productive you'll be regardless of the logistical surprises your company has to handle.
Not taking advantage of automation where it's available
You need to take advantage of automation in order to stay on the cutting edge of logistics. These days, there are numerous logistics management services you can automate.
You can automate the reordering of supplies and the processing of deliveries as they come in. You can also automate inventory replenishment and fleet maintenance.
Not making communication with customers part of your logistics processes
Communication among your staff isn't the only communication consideration that's important when it comes to logistics. To optimize and complete your logistics management, you should also include customers in the communication loop.
You should keep customers as informed as possible regarding things like inventory availability and delivery time frames. This will not only optimize your logistics, but also keep customer satisfaction up.
Ignoring your competition
Whenever possible, you should make yourself aware of what your competitors are doing to handle their logistic management needs. If you can learn what software and systems your competitors are using, you can come up with ways to give yourself a competitive advantage.