Good practices in logistics

Monday, August 5, 2019

It is not always possible to meet the expectations of the buyer; however, although the “effective logistics practice” is not necessarily easy, it contributes to the commercial results seeking to satisfy the needs of the consumer. These are some of the best logistics practices you should consider for your business:

Logistics best practice # 1: Treat logistics as an essential business process

Logistics management should not be seen as something external to your business practices, in fact for many SMEs, finding the right logistics solution is essential for business success.

For example, if the company sends orders, the way in which these orders arrive is essential for customer satisfaction. In turn, customer satisfaction is critical for business growth. Starting with this “best logistics practice” is a great way to ensure efficiency and satisfaction.

Logistics Best Practice # 2: Consider a 3PL quality provider with a focus on Lean Logistics

* Lean is a philosophy of improvement of manufacturing processes and services based on the elimination of waste and activities that do not add value to the final product or service offered to the customer.

Reducing waste can increase the end result, and a third party will probably be the most efficient way to achieve lean principles. Customer experience may depend on it, as skilled e-commerce buyers seek compliance efficiency. As StartUpNation notes, “A 2017 3PL study shows that 73 percent of chargers and 90 percent of 3PL providers believe that 3PLs offer new and innovative ideas that improve logistics.”

Logistics best practice # 3: Plan ahead for busy seasons and high demand

In most companies, orders are triggered on holidays and busy seasons, such as Christmas or early summer. Even with a 3PL as a partner, small businesses must ensure that they are prepared to meet these orders well in advance.

For internal logistics, this means having all your materials ready and waiting: packing boxes, peanuts, labels and a ready workforce. If you are using a 3PL, this means clearly communicating what your expectations are for these seasons, when they will come and how they have seen each other in the past. This type of preparation will help your company, the 3PL provider and your customers.

Logistics Best Practice # 4: Understand the business objectives before creating a logistics strategy

Business objectives will determine the logistics approach instead. For example, if your goal is to have the fastest delivery time, your logistics strategy will look different if your goal is to be a low cost supplier.

The solution here is simple enough. Instead of jumping into a logistics solution with both feet, you must first take the time to determine which business objective you want to prioritize to find and implement an effective logistics system. This can be particularly useful when you start communicating with a 3PL to meet your unique business needs, with the shared objective of logistics best practices.

Logistics Best Practice # 5: Have a World Class Customs Agent

Having a trustworthy, honest, efficient and self-structured customs agent ensures the company to carry out the systematic processes necessary for its entire operation to be managed optimally and successfully. In DICEX we have a specialized department in consulting that not only supports the development of SMEs but also provides the knowledge and tools necessary to ensure success. Logistics is in daily life, at home, in schools, businesses, transportation, etc. and having good practices and processes is a key to its efficiency.