Supply and logistics: 5 ways to optimize your ROI
Proper management of supply logistics is essential for increasing your profitability and ensuring healthy growth for your business, but which factors do you need to consider when optimizing your supply logistics ROI? Focusing on the right areas can lead to dramatic improvements in your company’s operations, helping you deliver desired results to your customers.
1. Accurate Data
Accurate data is an essential starting point for any effort to optimize your supply logistics. Comprehensive data points must be delivered in a timely manner so you can use up to date information to make the most informed supply chain decisions.
For many companies, implementing a supply chain management software that automates many of the tasks associated with business data, such as tracking order status or warehouse inventory levels, can eliminate the risk of human error associated with manual data input. Using a system that automates basic tasks, while simultaneously notifying you with important information, will make it easier to make decisions that will help your company grow.
2. Account for Variables
While the data supplied through supply logistics software can be extremely beneficial as you go through the process of optimizing your operations, managers cannot overlook the many variables that might affect the supply chain process. Every aspect of supply logistics is subject to some degree of variability, whether it be differences in travel time for a particular trip or even variances in the number of orders received on a given day.
Supply logistics models run through a supply chain management software would account for these and other variables. By understanding the many potential variables that could affect your supply logistics, you can make more accurate decisions and further optimize your ROI.
3. Employee Training
At first glance, employee training may not seem like a crucial part of supply logistics optimization. But in reality, it can have a significant impact on your ability to leverage data-based insights and turn them into opportunities to boost your ROI. Everyone involved in supply logistics can impact your company’s potential for growth, from your warehouse manager to your delivery personnel.
As such, employee training must be a key focus of your optimization efforts. By training employees on new techniques and skills that will allow them to perform at peak efficiency, you can accomplish far more than you would with data alone. Most importantly, well-trained employees will know how to react appropriately to divert disaster when unexpected challenges arise.
4. Maximizing Storage Capacity
Supply logistics optimization should always account for ways to make the most of your facility’s storage capabilities. Naturally, this will be somewhat dependent on the type of products and materials you store; many perishable items, for example, will need to be kept in moisture-free or refrigerated environments, which may require a specific pre-set storage arrangement.
No matter what type of products you store at your facility, you should implement a layout that maximizes your storage capacity while also making it easier for warehouse workers to gain access to desired items. Consider using vertical storage columns and active receiving areas that can handle an influx of seasonal in-demand items. Barcode scanning technology can also make it much easier for workers to locate items after a customer has placed an order.
5. Route Optimization
An additional way to improve your supply logistics is by finding ways to optimize routes for both your own orders and client deliveries. Using technology tools that find the safest and fastest routes can help you achieve rapid deliveries for your clients, which greatly increasing customer satisfaction. Alternatively, optimizing delivery schedules and routes from your own suppliers will help ensure that you always have the necessary items in your warehouse. Route optimization can make the entire supply chain process more cost efficient for your team.