learn how to optimize turnaround time in logistics

Expert Tips to Optimize Turnaround Time in Logistics

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The biggest trend in logistics is finding ways to speed up and streamline the supply chain. In this context, one of the key metrics managers use is turnaround time in logistics. As strategic partners for many companies, the specialists at Logistic Packaging know what slows down logistics processes and how to remove these obstacles.

What Is Turnaround Time in Logistics?

Let us start with the definition of the term. Turnaround time (TAT) represents the period of time between the beginning and the end of a logistic process. For example, in retail logistics, turnaround time means the period between the arrival of goods in a distribution hub and the delivery of these goods to the stores where they will be sold.

In the automotive industry, the internal logistic loop is extremely complex. Thus, here we are talking about several turnaround times. However, combined, they should give a final value that meets the expectations of management.

What Are the Factors that Affect the Turnaround Time in Logistics?

Over the years, the consultants at Logistic Packaging observed a series of factors that prolong TAT. These factors are:

  • Industry-specific – as explained above, industries with complex logistic loops may experience delays due to the many steps in the supply chain
  • Operational factors – using outdated systems and machinery and relying on manual labor are two of the biggest operational factors that increase TAT
  • Process complexity – complex logistics processes, with many checkpoints, especially involving cross-border deliveries, usually take longer and are more difficult to optimize.

Now, let us share our tips to optimize turnaround time in logistics and stay ahead of your competitors:

Coordinate Logistics Processes with All Stakeholders

As packaging producers and suppliers, we always remind our clients that we can help coordinate their efforts if we are included in discussions about planning. In the digital age, it is easier than ever to coordinate with business partners and vendors, even if they are located in different countries.Careful coordination can identify potential difficulties and help the logistics teams find workarounds ahead of time.This approach becomes essential in a world faced with increasing uncertainties and sudden regulatory changes.

Accurate and Comprehensive Resource Management

Before starting any project, a manager will evaluate if the available resources are adequate. This is also the right way to plan processes in order to optimize turnaround time in logistics.

To ensure that no surprises appear along the way, logistics manager must include all the resources the process needs:

  • Human resources
  • Packaging
  • Transportation
  • Technology and machinery

For specific industries, including retail, the resource management planning must include specific periods with a sudden increase in activity – the sales seasons.

Identify and Remove Bottlenecks

Bottlenecks appear all the time in logistics processes. Some of them are impossible to predict, being the result of specific circumstances. But many of them are repetitive and can be mapped, studied and eliminated.

It may be an issue of working with an unreliable transportation partner. It could be a lack of compatibility between modern automated machines and old packaging materials. These bottlenecks increase turnaround time in logistics and can lead to client dissatisfaction and lost business.

Increase Automation

Finally, one of the best ways of optimizing all processes, not just turnaround time in logistics is investing in automated solutions and machinery. Manual labor is unsafe, slow, and prone to accidents. It is also extremely costly in the long term.

Robots and automated logistics equipment can work 24/7 maintaining the same level of efficiency. Also, you can make better use of the talents in your team, by assigning them roles where they can use their skills and experience to add value to your business.

Logistic Packaging is a reliable long-term partner for companies in all industries. We offer professional returnable plastic packaging materials and expert advice to reduce costs and optimize various performance metrics, including turnaround time in logistics. Send us an email today to start discussing your packaging needs with our experts!