Improving Supply Chain Efficiency: How to Optimize Logistics Planning?

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If you want to ensure the efficiency of the goods movement processes, it is important to develop a strategic plan that keeps your supply chain system on the right track. An effective strategy and logistics planning can play a huge role in determining the success of a company. A comprehensive strategy for logistics planning should essentially cover the 4 pain points in a supply chain. These four pain points are related to inventory management, transportation decision-making, facility locations and also customer service levels. A good strategy encompasses planning at all levels – operational, strategic, and tactical - to overcome the challenges in logistics.

The Main Elements of Strategic Logistics Planning

There are three main elements that go into the development of a strategic logistics planning framework. These consist of long-term goals and the processes and means for achieving these goals.

  • Long-term goals: You need to determine what are the long-term goals for your company before you begin logistics planning. Your long-term goals can consist of supply chain management, customer satisfaction, and development on the competitive advantage of your company.
  • Means: The next thing you have to consider is the means for achieving the long-term goals you have decided upon. The means can consist of efficient customer service and delivering value to the people.
  • Process: The most important aspect of a logistics planning framework is the process that is employed in achieving long-term goals. The process refers to the manner in which you will execute the logistics strategy. A clear idea about the process would also help you anticipate any changes and manage them.

Tips for Optimizing Logistics Planning

The management of logistics forms the backbone of every business. When you are able to ensure efficiency in shipping, delivery, and supply chain logistics, you will be able to overtake the competition in no time. In order to improve the operational efficiency of your business, it is important to improve logistics planning. Following are some tips that can help in optimizing the supply chain logistics planning to improve the speed and efficiency of the process.

1. Improve speed and efficiency of logistics planning through automated dynamic route planning

In logistics, dynamic route optimization refers to routes being created from scratch following a given set of orders. It also allows adjustments based on weather or traffic-related issues. Automated dynamic route planning offers both scalability and adaptability. It also offers speed and efficiency of logistics planning through real-time tracking and enhanced visibility. A dynamic route planning software reduces delivery errors, increases on-road efficiency, and prevent last-mile complications.

2. Better utilization of resources (vehicles) during stock transfer by intelligent filler recommender

Optimizing your routes means looking at stops and formatting them in a way that maximizes the utilization of drivers, assets, and vehicles. A fleet management solution can maximize fleet utilization through reliable ETAs, minimize driving time, and increase the number of stops drivers make to improve customer satisfaction. Through its intelligent filler recommendation capabilities, it can also help you best utilize your resources during stock transfer.

3. Bring down the lead time to fulfill any order

Customers nowadays expect to receive their orders quickly, regardless of when they place the order and the amount of customization involved. Efficient logistics planning can help you bring down the lead time to fulfil any order, creating a more positive customer experience, and a stronger competitive advantage. By automating your order processing workflows, you can get your products out of the door more quickly reducing lead times.

4. Reduction in stocking days, thereby indirect cost savings

Inventory costs involve the following:

  • Labor costs
  • Purchasing costs
  • Taxes
  • Insurance
  • Security
  • Obsolescence
  • Transportation and handling

An organized warehouse helps to efficiently sort out inventory and quickly pick it up later. If your warehouse is unorganized, it not only increases travel expenses but also increased the likelihood of damaged or misplaced inventory. Obsolete stock can also be one of the most costly inventory you can have. Effective logistics planning can reduce the number of stocking days, leading to indirect cost savings.

Conclusion

 By using the aforementioned tips, you will be able to optimize your supply chain logistics and, ultimately, ensure the success of your business operations. Technology can help you significantly in the process by providing a customized solution to all your logistics challenges. If you are looking for logistics management software solutions, then Mojro is the place for you. To know more about the features of the Mojro platform, visit our website today!

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