4 Tips for Effective Logistics Management

When it comes to supply chain management, effective management is crucial. With freight traffic increasing, logistics managers in industries of all types are hard-pressed to find ways to make their shipping processes more efficient. In order to help your business grow, you must manage logistics effectively. Let’s take a look at how you can manage your logistics more effectively.

Invest in Your Team

The age-old adage is true: You’re only as strong as the weakest member of your team. Your logistics team is responsible for the growth of your company, and you should take the time and invest the money needed to set your employees up for success. Provide in-depth training when onboarding new team members and hold regular training workshops to ensure the entire team is up to date with the latest trends and techniques within the logistics sphere. Send hardworking employees to logistics conferences to keep tabs on the most recent advancements. By investing in your current team, you can avoid turnover, saving money and preventing productivity loss. 

Upgrade Your TMS

If you don’t already have a transportation management system (TMS) in place, you can leverage this tool to maximize your return on investment. For any company in logistics, a TMS can help make operations more efficient and improve customer service. A TMS can help you move your freight from origin to destination quickly, efficiently, and cost-effectively. Everything from bulk commodities to tiny packages can be managed through a TMS, and the benefits of these systems are vast. Through analysis, process refinement, and route optimization, these systems are designed to help manufacturers, distribution companies, and other freight shippers save money. Thanks to in-depth reporting and analytics, you can gain actionable insights to help improve processes and mitigate spend waste. Track deliveries in real time, improve warehouse efficiency, and reduce total freight spend in the long term. 

Create Contingency Plans

Things don’t always go to plan – an effective logistics strategy means expecting the unexpected. Inbound Logistics found that 73% of companies had experienced a disrupted supply chain, and it took more than a month for almost 1/3 of those companies to recover.  

Always have a contingency plan for every aspect of your process. Keep your eye on every piece of the supply chain and be prepared to be flexible – you may need to switch to a backup plan at any given moment. The best advice: have a network of vendors and suppliers that you can depend on for products and services in the event of an emergency. 

Hire the Right Logisticians

Sometimes, new ideas and strategies are essential – and in some cases, that may mean acquiring new logistics resources outside of your current roster. If your logistics workflow needs an overhaul, consider hiring a new logistician. As you interview candidates, ask yourself the following questions:

  • How much experience does he or she have? You’ll want to hire someone who’s faced the many challenges and obstacles prevalent in the field.
  • Does he or she possess great interpersonal skills? You’ll want this individual to work well with your current team, and be able to pull the best from your employees
  • Are they well connected in the supply chain industry? This goes back to our point early: you’ll want to be able to expand your network. 
  • Are they financially savvy? You’ll want to hire an individual with the financial acumen needed to increase savings and boost your bottom line. 

Final Notes

Logistics management is no small feat, but with the right strategies, you can set your business up for success in 2020. Keep the above tips in mind and make this next year your most profitable. 

Adam Hansen