Logistics brings together all the necessary methods for the correct operation of a company. For a company to be competitive, it must have good management of its supply chain, considering aspects such as transportation, shipments and inventories . Sometimes it is necessary for the company to adopt structural changes to improve its logistics; in others, they are small modifications that make processes more efficient.

Finally, the correct administration of this area has direct effects on the quality of the service and the costs of the product; and this is where you can find competitive advantages and added value for your clients.

Below we share the areas that you should consider to improve your logistics and be more competitive:

These are tools that facilitate visibility in the supply chain, providing information about the processes and improving the exchange of data between all members of the chain.

Some of the basic systems are:

The main objective of this practice is to ensure the availability of materials and products to satisfy the demand. Here the key is to define processes to efficiently manage the products.

In some companies, the warehouse can account for up to 60 percent of costs. Learning to manage it is key to competitiveness. How can you do it? Here are some ideas:

1. Use automatic collection systems that increase the efficiency of resources related to warehouse management.

2. Strategically plan the supply network. Find the most economical way to send and receive the product, maintaining quality and customer service.

3. Use shared warehouses. It is recommended for SMEs that have changing geography, as it allows them to be flexible.

4. Have buffer stores. They allow a more dynamic distribution and ensure a quick response.

This area often represents high costs in organizations, so improving its management is essential for competitiveness. This includes implementing network design strategies and some of the best practices are:

Outsourcing these processes is a good practice to improve competitiveness. This includes shippers, logistics service providers, and integrated service providers. Specialists use advanced technology, with the intention of providing the best service, such as electronic communication tools. For this scheme to work, you need to implement collaborative practices with these providers. Costs will decrease and your efficiency will increase.

At this point, good planning is required to improve supplier-customer coordination. Take note of some of the best practices:

As in any area of the business, logistics requires measurement and feedback, using indicators such as Inventory Turnover, Cost of Goods Sold and Return on Assets.

These are some tips you can follow:

It is required to integrate business processes to respond correctly to the customer. For this, it is necessary to achieve collaboration between all members of the supply chain, through mutual trust and the exchange of information.

Source: Entrepreneur

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