customer centric and bring them value
You need to go further for your customers, they should not
be inconvenienced by your company’s transportation strategy. Products should be
delivered to a customer based on their needs, not when it fits in with you
schedule. Your schedule needs to be built around the customer.
Take time to fully understand your customer, how they
operate, what they expect and build your transport strategy around these key
points. Meet your customers expectations whilst streamlining your own logistics
operations in the process.
performance; build relationships
As a transportation partner you should be positioning your
company and service as a transactional partner, rather than a strategic
partner. Building trust-based relationships with clients using your transportation
service, based on willingness to collaborate, working as one team and cross
function thinking, is an essential ingredient for a strong working
The use of KPIs and metrics to measure the effectiveness of these collaborations encourages ongoing improvements form both sides. Building long-tern relationships with stable, dependable and committed carriers is a very effective way to ensure a high-quality service is given to your partner organisations. It may be beneficial to access the services of a legal team, such as that of Langer & Langer, who can assist in drafting contracts for this type of working relationship.
out transportation waste
Transportation is often used as a strategic differentiator,
with great importance placed upon the notion that most transportation is
necessary and by no means wasteful. However, transportation becomes wasteful
when there is unnecessary journey points and distances covered due to an
inefficient logistics system.
You need to focus on how you could differentiate your
service in the industry by using route optimisation
software coupled with a lean approach to carriage. Waste comes in the form
of any distance travelled that didn’t need to be, and importantly this includes
distance of certain items within a consignment that travel more distance than
they should due to bad route planning for multiple item consignments.
4. Get to
grips with the cost structures of transportation
Productivity costs and unit costs are the two major
considerations for logistics companies, each with their quirks when it comes to
how you can be more cost efficient. Most logistics providers have learned that instabilities
in the transportation network are often a by-product of paying too much
attention to unit costs and carrier rates.
The real savings lie in the optimisation of productivity
costs using trucking
route software to monitor how trailers are used, the total of miles driven,
standing and in transit times of vehicles and the optimisation of routes
overall. This way shippers will feel they have value for money, being less
likely to quibble over other costs and time taken – the results will be
event management is essential for agile logistics
Money is saved from a disciplined approach to your daily
event management. As mentioned, waste is a key factor and should be monitored
on an hourly basis and efforts to reduce this waste should be second nature.
Daily transportation plans, route designs, real-time track
& trace, real-time metrics and agile real-time problem solving is the only
approach any logistics operation should take, with specific attention given to
discipline in all your processes – again, supported by software.
About the author
David Bailey-Lauring is a single father of three boys and a content writer and
regularly writes about sport, fitness, education and tech in the UK, USA, and Europe.