Concept of logistics strategy development and planning process
The logistics strategy development and planning process can be described as a comprehensive, integrated, and unified planning procedure for achieving a competitive edge through improved service quality and customer experience. This can help businesses to increase their customer satisfaction. With surveys indicating that businesses prioritizing the customer experience see 4-8% better revenue growth, the importance of logistics strategy development and planning process becomes even more prominent.
Strategic planning is implemented within the fabric of the company goals. Hence, managers need a thorough understanding of the relationships between the various components and logistical activities regarding overall cost and trade-offs to the organization.
Major aspects of logistics strategy development and planning process
The key aspects of strategic logistics planning include the following:
The essential long-term objectives a company should consider while designing its strategic logistics plan are supply chain management, customer satisfaction, and the business's competitive advantage.
Ways to achieve long-term objectives
The ways to attain long-term objectives are providing value and providing excellent customer service. It also includes having the resources necessary for carrying out the logistical planning.
Processes for achieving long-term objectives
This includes establishing how the logistics strategies will be implemented, forecasting and managing changes, and linking each strategy component to the overall business goals.
Strategic logistics plan examples
Some examples of logistics strategy development and planning process businesses can consider include the following:
Some businesses don't have significant transportation requirements, yet for others; transportation is essential to achieving their objectives and delivering their products. Transportation plans can also often involve a variety of modes of transportation.
For instance, perishable goods like milk must be transported chilled, raising prices and delaying deliveries. Mojro offers an efficient solution called sourcing tanker automation that reduces expenses by automating the selection of a chiller to a plant-based on various factors, including plant capacity, chiller proximity, and the mix of available fleets. This solution also effectively identifies the best route between a network of chillers and plants. Whereas for eCommerce businesses, transportation can be multimodal and include transport systems like cargo ships and delivery trucks.
Businesses that sell perishable products, such as milk, require warehouses with refrigeration that hold just enough stock to meet immediate demands while minimizing waste. This plan necessitates understanding not only the infrastructure of the warehouse but also a precise knowledge of the current status of the fulfillment needs. Warehouse managers can also place frequently accessed commodities near loading bays to reduce loading times.
Tips on logistics strategy development and planning process
Some tips businesses can use while considering logistics strategy development and planning process. These include the following:
Develop a flexible, unified purchasing process.
Businesses may have logistics operations spanning different geographies. It is essential to make a flexible logistics strategy that can quickly adapt to the changing customer demand in all the places the company operates.
Businesses can leverage technology to constantly communicate with stakeholders and customers to keep them updated on the different processes and avoid miscommunication. This will strengthen the relationship with stakeholders and improve client satisfaction.
Develop sustainable models
Sustainability has become an essential aspect of logistics planning. Businesses must optimize their supply chain and logistics processes to be sustainable and reduce adverse environmental effects as much as possible.
Logistics strategy development and planning process is an essential element that affects the success of any business. Companies can leverage Mojro's Planwyse to optimize their logistics planning operations. This optimization engine takes in numerous relevant data like demand and vehicle location information, business constraints, daily shipment status, and supply configurations to create a real-time efficient plan.
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