The 5 Best Ways to Improve Your Business Logistical Strategies

Lizzie Weakley

September 13, 2016

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Competition is fierce in today's business world. One of the best ways to ensure you stay in the game among your competitors is to have an efficient logistics strategy. Taking steps to minimize your warehouse and distribution costs, utilize your production capacity to its fullest and improve customer satisfaction by delivering on time is essential to remaining on top of things. Consider these five best ways to improve your business logistical strategies if you feel your company needs to make some changes.

1. Automate Communication

Automating communication in as many ways as you can is the first step to improving logistics. Investing in warehouse management software, automation of reports and other such steps will ensure that everyone is on the same page, resulting in fewer mix-ups and better productivity.

2. Maximize Storage

Running an efficient warehouse starts with having an efficient organizational system in place. Maximize your vertical space, use proper shelving and label everything. Doing so will allow you to hold the most inventory possible without having to invest in another space and hiring additional workers.

3. Optimize Transportation

Not only is saving space in your warehouse important, you want to do the same when it comes to your transport. Rising costs in transportation hurt your bottom line. Consider changing the design or materials used in your packaging in order to optimize size, weight and capacity. Consulting with a company like Commonwealth Inc. can help you to do that. You also want to be sure you have strategized proper load and route planning to get the most out of your runs.

4. Outsource When Possible

While it's often preferable to keep operations in-house, there are times when it makes sense to outsource. Hiring out is a good idea to meet the needs of unique situations like over-sized deliveries, unexpected order volume or seasonal needs. Building relationships with reliable vendors can save you in a pinch.

5. Emphasize Customer Service

Customer loyalty is the end goal for any business. Creating return customers is far more efficient than appealing to new ones. Keep this in mind when weighing whether to invest in a particular logistical tool. If it will likely improve delivery time and accuracy, it may very well be worth an investment of time, money and staff. Dissatisfied customers talk, and word of mouth can have a tremendous negative impact on your profitability.

These five tips to improve your business logistical strategies should get you started toward maximum efficiency. A bit of planning and investment now will pay off in future profits.