Jen Grant

Logistics, Long-Form Blog Post Due: 09/24/2019 | 2,000 Words Logmore, ContentFly Project ID: xrpWOnaplRbLAYaj PROJECT SEO METADATA & CLIENT NOTES FOCUS KEYWORDS: Data Logging Circumstance Monitoring Data Collection and Analysis INTERNAL LINKS: Part 1: • • • • • • • • https://www.logmore.com/post/logistics-the-invisible-industry https://www.logmore.com/success-stories/air-freight-provider https://www.logmore.com/post/6-important-trends-in-logistics- https://www.logmore.com/post/the-importance-of-data-logging-for-online-pharmacy-processes https://www.logmore.com/post/should-i-take-cargo-insurance https://www.logmore.com/post/what-is-data-logging https://www.logmore.com/products https://www.logmore.com/etc/book-a-demo Part 2: • • • • • • • • https://www.logmore.com/post/6-important-trends-in-logistics- https://www.logmore.com/post/extreme-automation https://www.logmore.com/post/logistics-the-invisible-industry https://www.logmore.com/post/big-data-in-supply-chains https://www.logmore.com/post/should-i-take-cargo-insurance https://www.logmore.com/post/what-is-data-logging https://www.logmore.com/products https://www.logmore.com/etc/book-a-demo IMAGE LINKS: • • Part 1: Delivery Person Carrying Boxes: https://unsplash.com/photos/KSQgzzn3dW0 Part 2: Small Handle with Care Box: https://unsplash.com/photos/YiSD-1eJ_1g NOTES TO CLIENT: *REDACTED* J. Grant Page 1 of 9 Part 1: What Is Transportation and Logistics Management? This article is Part 1 of a two-part series covering transportation and logistics management. Transportation and logistics management are two closely related business units that share a common objective. The primary goal is to transport inventory throughout a company’s supply chain efficiently and effectively. While people use the terms interchangeably, transportation management is a subdivision of logistics. It’s a symbiotic relationship that requires care and attention. Actively managing supply chain offers your company tremendous cost- and time-saving advantages. In other words, you can’t afford to miss out on opportunities due to non-prioritization of this essential service function. Before executing a long-term strategy, it’s vital that you have a solid understanding of what transportation and logistics management is. Let’s begin by analysing how the two processes function independently and as a cohesive system: Logistics Focuses on the Entire Order Fulfilment Process Logistics refers to the receipt, production, and distribution of goods and materials in the customer-requested amounts to its final destination. It is also the strategy that determines how your company stores products in its warehouse, tracks orders, and delivers products to its customers. Simply put, logistics is the overarching business unit that oversees the entire process of order fulfilment and matching customers expectations. It’s both an art and a science. Transportation Concentrates on Managing Physical Delivery Transportation within the context of commerce is the movement of goods from one location to another. It’s considered to be a sub-unit of logistics. Companies deliver products by land, air, or sea. Sometimes referred to as transport logistics, it’s a function divided into three significant areas in which a business must engage: • • • Operations Management Vehicle and Fleet Organization Infrastructure Administration Now that you can see how the two activities operate on their own, it’s time to shift our focus toward how they can work together: Leveraging Transportation Under the Logistics Umbrella Practising logistics management, in an effective and efficient manner, requires you to pave the foundation for a transportation network that responds with your business’ needs while remaining economical. Doing so allows you to address unanticipated issues and improve customer service with zero downtime or disruption to your service process. Transportation is one element of the process. Logistics further provides for inventory planning, goods storage, and demand forecasting in addition to delivery. Optimising your supply chain’s performance means that you satisfy your customers’ needs at the lowest cost possible. A Balancing Act with a Moving Target Consider this example to better understand the relationship between transportation and logistics: a pharmaceutical company wants to keep the least amount of inventory on hand to mitigate its investment exposure. The company’s management team attempts to warehouse all stock in a central location since data collection and analysis tells them that it is the best way to achieve this goal. How does this strategy affect transportation? Deliveries taking place outside the geographical location of the warehouse may experience delays which can lead to disappointed customers. There is even greater potential for revenue loss, primarily when serving industries that deal with temperature and shelf-life issues. Using the same example above, if the company decides to focus on delivery times and transportation by asking customers to augment their orders, it takes the same problem and propels it in the opposite direction. Asking customers for unreasonably large orders can slow down the process even further. This situation is fertile ground for dissatisfaction. Automation and Data Logging Bridge the Gap in New Ways As you can see, transportation and logistics must work in tandem to fulfil customer orders as expected at the lowest price possible. It’s one of the reasons why automation technology is on the rise among transportation and logistics companies. Managers and executives can systematise predictable, redundant tasks across the supply chain network with zero error and at a fraction of the cost. In addition to automation, data logging is on the rise as well. Both logistics and transportation can participate in data collection and analysis separately and together. Over the long-run horizon, it allows companies to access valuable insights about their supply chain with circumstance monitoring information. Why It’s Crucial to Actively Manage Your Transportation and Logistics Business Units Order fulfilment is only one aspect of transportation and logistics management. There are several other reasons as to why it’s crucial to be proactive about this area of your business. Let’s take a closer look at a few of them below: Optimisation of Inventory Flows Effectively managing your transport logistics allows your entire supply chain to run seamlessly. You can keep your inventory lean using successful transportation techniques. Plus, you can improve your warehouse’s operational efficiencies, reduce lead times, and save on storage expenses. Environmental Sustainability As you become more streamlined in your logistics approach, another benefit is reducing your carbon footprint. The transportation industry is known for being a bit ‘emissions-heavy.’ Moreover, customers want to work with companies who take social responsibility to heart. Optimising your transportation process reduces environmental impact while simultaneously delighting your customers. Becoming a Preferred Shipper Did you know that there is a shortage of truck drivers worldwide? Experts predict that this trend is going to continue well into the 2020s. Fewer trucks mean less trailer space. Less trailer space equates to longer lead times. Companies that can avoid this pitfall have the strong potential of becoming a ‘preferred shipper.’ Preferred shipper status is the gold standard among customer service indicators that tell industry players that you are managing your logistics process well. Expanding your future capacity is critical to your success. Final Thoughts and Considerations Transportation and logistics management is a vast and complicated area of your business that demands time and attention to grow your bottom line and satisfy customers. Both areas of order fulfilment must work simultaneously for optimal results. This article is Part 1 of our two-part series on transportation and logistics management. In our next post, we offer you our best tips for executing a rock-solid strategy. If you enjoyed this article, check out our post Cargo Insurance: Why You Should Take It. For more information about some of the technological concepts regarding data collection and analysis introduced in this article, please refer to What Is Data Logging? At this point you may also be interested in taking a closer look at the Logmore service, we might be able to help you with your problems. Also, you can book a meeting with us if you'd rather talk! Part 2: 7 Tips for Effective Transportation and Logistics Management This article is Part 2 of a two-part series covering transportation and logistics management. In the previous article, we discussed: • • • • What transportation and logistics management is How they function independently and together Why it’s essential to manage both elements proactively How automation, data logging, and circumstance monitoring help Now, we are going to get into the technical and managerial aspects of transport logistics. The more steps that exist within your process mean that you need to streamline it even more so. Not only does this approach meet the goals of supply chain management, but it also allows you to address problems as they arise. Here are a few expert tips for practical transportation and transportation logistics management: 1. Determine Your Transport Logistics Goals Before Implementing a New Strategy As you recall, the success of your transport logistics sector hinges upon your company’s ability to deliver goods from one location to another according to your customer’s expectations. In addition to forging strong client relationships, your other objectives likely centre on revenue generation and increased efficiencies. Defining goals for your transportation and logistics business unit is a great place to start. As you are goal setting, it’s crucial you select targets that facilitate the overall goals of the business. Examining every aspect of your supply chain and planning from that vantage point is one way to accomplish this task. 2. Use Contingency Planning to Your Advantage No plan is ever fool-proof, especially in transportation and logistics management. You can’t predict and prevent every little thing that can go wrong. Therefore, unforeseen circumstances are always on the table to make an appearance during the time your business is in operation. Instead of handling significant issues as they arise, try defending yourself from external factors by playing offensively. Developing a contingency plan is one way that you can address problems in real-time if things do not go as planned. 3. Leveraging Business Automation Applications and Software Programs Like every industry on the planet, transportation and delivery services companies are making the shift from manual labour to extreme automation. Business automation takes the guesswork out of supply chain management through data collection and analysis from multiple resources and perspectives. Applications on the market can assist in fleet and inventory management. It can also provide you with insight as to where breakdowns may have occurred when customers assign blame to your company for a failed delivery. 4. Get Your Employees to Communicate Regularly Your employees’ behaviour directly affects your service process. By strengthening their ability to communicate and perform their jobs, you improve your efficiencies and efficacies in ways that customers notice. An open-minded communication chain starts with having a conversation in the first place. Make sure your key managers are talking to their staff members regularly. While you don’t need to spend an inordinate amount of time on communication, try to take advantage of little moments with your personnel. Compliance and floor meetings are great examples of times in which you can directly communicate with and impact your people. When you talk to your employees, they begin to share critical information with each other. In turn, this can lead to a drastic improvement in morale and customer service. Communication has the potential to make or break your relationships. Strengthen it to propel your company forward. 5. Ensure You Keep Your Customers “in the Loop” Excellent customer service is the primary tenet of effective transport logistics management. After all, customers are your most valuable asset. Not only are they the source of revenue generation, but they can influence peers and colleagues using social media and word-of-mouth reviews. That’s why the industry heavily advocates for the adoption of total transparency throughout the entire purchasing process. When your customers know the status of their delivery every step of the way, it eases their post-purchase, pre-receipt anxiety. Plus, it’s your company’s opportunity to shine by following through Ensure sure you implement a communication system that comprises of confirmation emails, tracking numbers, and your company’s contact info in case they have questions or concerns. 6. Take Service Delivery Cues from Your Competitors Some of the best places to gather ideas occur when we examine the activities of those with whom we compete. Taking note of how your competitors manage their transport logistics can provide clues as to how you can improve upon your own processes as well as learn about what gives you the edge over their service offerings. 7. Use Data Collection and Analytics to Improve Your Results Logistics network optimisation is not complete without integrating data logging tools that can manage circumstance monitoring for your specific industry. Doing so allows you to implement a sounding board for measurement, analysis, and insight. Circumstance monitoring is an essential aspect of managing your supply chains since it can elevate your efforts or quell them. Final Thoughts and Considerations Transportation and logistics management is a vast area of business that demands time and attention to grow your bottom line and satisfy customers. Both areas of order fulfilment must work simultaneously for optimal results. This article is Part 2 of a two-part series. If you enjoyed this article, check out our post Cargo Insurance: Why You Should Take It. For more information about some of the technological concepts regarding data collection and analysis introduced in this article, please refer to What Is Data Logging? At this point you may also be interested in taking a closer look at the Logmore service, we might be able to help you with your problems. Also, you can book a meeting with us if you'd rather talk!