Key tips for effective logistics planning

August 27, 2021

Key tips for effective logistics planning

When you manage a warehouse, there are certain steps you need to take when it comes to logistics planning.  This is why the team at Tu Pack have put together a guide to ensure effective logistics planning in not only fulfilment shipping, but also any management process.

  1. Proper planning

The foundation of any management process is a good planning structure.  Planning includes many factors, such as getting your products, storing them and storage facilities, and the delivery of the products to the required locations.  Any warehouse management system should have a flow chart for the entire operation, from beginning to end.  The mantra of efficiency is at play here – minimum input for maximum output.  Proper planning has the aim of attaining the most work in the least possible time, while it also aims at maximising profits.

In the case of an emergency, a contingency plan also needs to be in place to avoid any possible logistics failure.  A logistics planning process is incomplete without a contingency plan in place.

  1. Automation

In the modern world, where everything is technology dependent, automations play a significant role in the increase of efficiency in any organisation.  It is also important when it comes to optimising any business process.

In the logistics industry, technology is becoming ever more important.  There already exists valuable software out there that can be used in any logistics process to expand its competence.  Using business process software that gives regular updates about the movement of goods, can also be integrated to track this movement, empower safety networks, create transparency and give your customers a good experience – improving proficiency in the management process.

Though the above business process software that tracks the movement of goods, the operator and the customer can also be given details about when the goods are sent from the supplier, when goods are procured from the warehouse and when it has reached its desired destination.

Automation saves a lot of time, because manual interference and human error is eliminated from the process.

Automation also assists in the managing and organisation of both account and employee details accurately.

  1. Value Relations

For any business, the team is the most important part.  The team is responsible for the growth, expansion and success of the company.  The warehouse manager, delivery workers and floor workers all should have a defined role with importance.  To make sure that work is done efficiently, regular and proper training for all employees is vital.

  1. Warehouse Management

Good warehouse management is a core part when it comes to effective logistics management.  Warehouse operations structure and planning differ with the type of goods that you are working with.  Dairy products, for example, requires refrigeration, whilst grains require an environment that is moisture free.  It’s important to develop an accurate and practical warehouse to ensure that the minimum of goods are wasted. You also need to maximise you storage capacity, and here vertical storage columns are a great idea.

  1. Efficient Transportation

Efficiently managing your Transportation department is also something that reduces your expenses, making it cost-effective.  This department should also specialise in fast delivery of the goods to make it time-efficient as well.

In this regard, you need to look at the best delivery route, that takes traffic, weather conditions and the state of roads into account.  The safest and shortest route should be opted for, this way ensuring something that is both cost-effective and time-effective.

Another way to ensure a cost-effective strategy, is to create packaging that requires low investment but takes the safety of goods into consideration.  You can consider a type of packaging that takes up less space and doesn’t make the package heavier, such as bubble-wrap or shredded paper.

  1. Measure and Improvise

For a logistics strategy that optimise the entire process, the integration of measurement, analysis and feedback is vital.  When you implement a new strategy in your system, you need to measure the output to ensure that your strategy has been successful, and if not, the rethink.  

Measurement software applications that determine and classify the various pieces of information, as per the requirements of the strategy, is an asset that you should take into account, as it is important in determining just how efficient your strategy is.  Any future planning is crucial for the efficacy of logistics management, as it helps you lay out course of action to take in the future, as well as any upgrades or corrections that you need to make.

Metrics that are measured with this software include cycle time metrics, service metrics and cost metrics.  Any suggestion brought forward by employees should also be recorded, as these are the people that work in the warehouse every day, and their ideas might be what saves you money in the end.

Logistics planning is important for any company, not just in this industry, and having an effective strategy in place is vital in ensuring success, and saving you both time and money.

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