Does your Logistics Strategy align with your Corporate Strategy?17 Jun 2016, by Blog, Logistics Outsourcing, Transportation Spend in
Most companies strive to build a brand based on providing quality products and great service. So why do some companies risk compromising their brand with poor performance related to logistics?
This is not to suggest that companies should over-spend, or not pay attention to their logistics costs. Responsible logistics management is always about finding the best carrier to get the job done for the best rate.
But trying to optimize logistics costs can go too far. Paying less for carriers with known performance issues or working with unreliable brokers are two commons ways this can happen. Another is choosing a low cost mode that will save money but also cut due dates too close or even knowingly miss them.
Under-performing carriers will often be unreliable when it comes to taking care of other important details. Examples can include failing to provide timely delivery status updates and delivery notifications, and not setting up appointments at customer facilities that require them.
In addition to using quality carriers, it’s important from your perspective as a shipper to keep communication open with both your carriers and customers. It seems obvious to say but the goal needs to be to simply provide the service your customer expects. Thing includes being accurate with your shipment information and paperwork – and delivering on time.
What are some ways to accomplish this?
First, find partners experienced in your industry. Many of the delivery requirements your customers have are product and industry specific – like the many special packaging and unloading rules at big box retailers or food service companies.
New partners you may be considering should have documented and quantifiable examples of their successes. With all the options in the marketplace, there is never an excuse for any shipper to work with carriers not having a proven record of service.
Lastly, don’t become complacent. It is vital to continually manage and measure carrier’s performance and your service to customers. Logistics operations must be fluid and adapt to make sure service and cost are in the proper balance.
If you would like a 2nd opinion of your current Logistics Strategy, I created the ROL Assessment™ ( watch this https://youtu.be/c3pufpDbE0Y ) that will confirm if you are doing everything right, or offer strategies where you can optimize. Email me to learn more at firstname.lastname@example.org