Operational and logistics goals are for supply chain managers what revenue targets are for sales managers. You can prove your worth in your profession by creating, reaching, monitoring and updating relevant goals which will help your organization become more profitable.
There are various goals in the supply chain field. And various industries have specific KPIs which supply chain managers must meet. The Logistic Packaging specialists have worked with many clients and had to find solutions that meet a wide array of organizational goals.
When All Else Works Fine, Improve Operational and Logistics Goals
There are moments when some companies seem to reach a plateau. They have a consistent customer base. They have strategic partnerships with suppliers and collaborators. The market statistics show a growing trend.
Yet, the company is not able to push its bottom line further or to grow its market share. These are some of the issues supply chain managers brought to the discussion table with our packaging and logistics consultants.
After an extensive experience with clients operating in various industries, we identified five common operational and logistics goals that the company should achieve. These must be on any supply chain manager’s to-do lists.
Here they are:
1. Logistics Network Optimization
The logistics for each delivery can vary over time. As your clients expand their own operations, they will instruct you to deliver to different locations. Also, each location may have different logistic equipment available to speed up loading and unloading.
This means that you must exercise very tight control on your stock of packaging materials and negotiate flexible terms with your transport services supplier. In this way, no unexpected change in the instructions accompanying orders will catch you unprepared. You will always be able to prepare the order in the adequate packaging and ship it in the most cost effective manner.
2. Product Range Management
Products sitting on your warehouse shelves represent a double loss. First, some of them will be left there beyond their saleable date and will be added to your operational losses. Secondly, while they take up valuable warehouse space, you are unable to stock up with fast selling and in-demand products.
As the well known Pareto principle states, 80% of your revenues are generated by 20% of your range of products. Thus, you need to perform periodic assessments of the sale performance of your product line. As applicable, you should discontinue some of these products and increase production for others.
3. Optimizing Inventory Levels
Adequate inventory levels help successful manufacturers and distributors win extra market share by being able to deliver last minute and urgent orders. This is the point that makes the difference between different companies that sell products of similar quality and at similar prices.
With ecommerce putting pressure on retailers to deliver more, faster and cheaper, relying on a dependable distributor is a must for these companies. Thus, one of the key operational and logistics goals for supply managers must focus on the optimization of inventory levels based on market trends and predictions.
4. Smart Warehouse Management
Warehouse space is one of the most valuable assets for manufacturers and distributors. Here, the Logistic Packaging team has managed to perform complete overhauls of inefficient warehouses, by changing the way space is used and allocated.
Through smart use of space saving containers, label holders and mechanized equipment (such as the pallet inverter and pallet box discharger), we can help supply chain managers reach this strategic operational goal. With careful planning for each square inch, both horizontally and vertically, your warehouse can hold larger inventories and operate more efficiently.
5. Coordinating Sales and Logistics Efforts
The sales team closes the deal, but the logistics team has to deliver it and keep the promise made in the contract. Thus, the supply chain manager must act like a liaison officer between these two teams and synchronize their efforts.
With the help of a trusted logistics and packaging partner like Logistic Packaging, you will be always prepared to deliver each order and keep every promise made by the sales team.