Apr
We’re in a Challenging Time for Logistics Strategy
As if COVID-19 didn’t already turn our sense of normality on its head, companies around the world were already struggling when it came to their logistics strategy. The Amazon effect (ongoing retail disruption), continually shifting government regulations, and relentless competition for and focus on capturing the best opportunities have left many companies that aren’t at the enterprise level struggling — let alone able to create and sustain a logistics strategy that results in positive bottom-line movement.
As a partner to your clients, you’ve undoubtedly witnessed these various factors make an impact on their businesses. While you may provide a service that doesn’t specifically touch logistics, they are nevertheless connected — either before logistics comes into play or as a result of the logistics function. It’s valuable for you to know what a best-in-class logistics strategy looks like so you can advise and support your clients with this important function. In this post, we’ll explore a few recommendations for creating and sustaining this strategy.
Three Elements of a Best-in-Class Logistics Strategy
1. It Prioritizes Service Above Trends
While the numerous trends affecting logistics do make an impact on service delivery, service itself is and always will be an interpersonal, human function. Freight doesn’t arrive on time and in good condition unless there’s a committed professional at the helm, whether they’re on the road, on the water, or in the air. People are what drives logistics success, and so ensuring that service agreements are fulfilled, maintained, and ideally enhanced is critical to a successful logistics strategy.
There are ample opportunities for your clients and their freight partners to streamline the process. Examples include driverless trucks, drones, and so on — but no organization should divert its attention to these trends so much that it impacts service delivery. A self-driving truck doesn’t go above and beyond for its clients, nor can it answer for an SLA failure. It takes a committed, informed, and experienced team to build and execute a best-in-class logistics strategy and get products from A to B on time.
How are you using logistics trends for your clients’ success? Let us know.
2. It Leverages Technology
Just as supply chain teams are leveraging blockchain technology and other analytics tools for greater transparency with their suppliers and for overall optimization, so too should logistics. With more and more of the world’s products moving across multiple borders and via various modes of transportation, the chance for documentation errors, fraudulent activity, and other challenges increases.
Blockchain technology is still in relative infancy for inclusion in a logistics strategy, but it shows tremendous promise for helping companies increase transparency, prevent transit issues, and optimize the entire process. Similarly, putting analytics tools to use for logistics optimization will be critical for your clients to get the most out of their freight partners and be able to continually drive down costs.
3. It Strives for the Perfect Order
For clarity, a perfect order — defined by the Supply Chain Council — is achieving complete accuracy and “rightness” across the entire spectrum of an order (quantity, cost, time, price, etc.). To achieve the perfect order requires ongoing optimization throughout the entire supply chain and logistics cycle and is a north star toward which companies should aim their efforts. Obviously, it can be extremely difficult to achieve the perfect order, but the effort and focus for achieving it is valuable and produces ongoing benefits.
To help your clients make progress toward the perfect order, it will be critical for your organization to (within your remit) support efforts that remove barriers to change. For example, the company may have a freight partner they’ve been working with for years. However, if your work for the client reveals that other opportunities may be available, or that some aspect of the relationship isn’t supporting perfect order performance, advocating for change or improvement can help get things redirected.
Are your clients experiencing issues in these key areas? We’re here to help.
Become a Logistics Strategy Champion for Your Clients
Logistics makes an impact on virtually every part of a business — from its long-term financial performance and customer service to how the company is perceived from a branding and marketing perspective. It’s critical that you include logistics in your efforts to support your clients. How is the client’s logistics strategy (or absence of one) impacting their finances? How is it impacting production? How is it impacting service delivery?
A well-crafted logistics strategy will not only help to improve your clients’ ability to meet expectations in these key areas but also help your organization demonstrate considerable value and strengthen its position as a reliable value-added partner. Brady Partners is here to help you become this champion.
If you’re ready to help your clients create positive change throughout their organization through their logistics strategy, get in touch with our team today.