Logistics optimization is an integral part of business growth and success. According to Supply Chain 24/7, "Supply chain and logistics optimization are neither easy nor cheap, but it is the biggest opportunity for most companies to reduce their cost and improve their performance significantly. For most supply chain and logistics operations, there is an opportunity to reduce cost by 10% to 40% by making better decisions." Embracing analytics tools and technology make the best use of available resources. Plus, it will ensure the chain stays strong. In the end, it empowers leaders with a more able strategy to meet customer wants and needs. Here are seven examples of logistics optimization managers need to embrace.
Old, outdated data is the single greatest weakness of traditional data analyses. Within the logistics industry, timeliness is everything. Modern data collection methods enable logistics optimization through real-time data—including up-to-the-minute communications and feedback. Of course, that also implies a need for integrated systems. Speaking of integration, shared data connections with normalized data streamlines all operations.
All the data in the world will do no good when it's in its raw form. It needs to be broken down and applied. Logistics optimization embraces data analytics with advanced key performance indicators (KPIs) and metrics. That's so available information can be and interpreted and used throughout the chain.
While managers use KPIs to monitor and track the progress of a company's business goals, they are not necessarily fool-proof. Remember that data can be overwhelming. Thus, supply chain KPIs must be meaningful and actionable. Those traits give rise to more productive improvements.Various indicators can be monitored to provide a complete view of how well the chain performs. And they can also help highlight logistics optimization opportunities as they appear or seem within reach.
Logistics optimization can take on many forms in shipping and logistics. End-to-end optimization can help strengthen relationships, both within and outside the network, including 3PLs and carriers. While some of these companies may offer limited analytics, they lack the full picture. Strong and open lines of communication with all partners will strengthen every step. Plus, enterprises need data analytics beyond the included resources of most 3PL partnerships. That's why more companies are turning to experts like Intelligent Audit to get a holistic analytical picture of their shipping data.
Mistakes will occur when taken without the context of the whole picture. Issues will arise despite even the best of planning and forethought. Planning for delays, disruptions, and deviations is the best way to address them. That ensures when they do occur, things can get back to routine faster. Flexibility is the power of logistics optimization. It goes back to having data at your fingertips to make decisions on the fly.
Adaptability, when it comes to logistics optimization points, creates on-going success. Knowing what customers want and recognizing when it shifts is a must-have skill. Adapting to meet those demands is a huge part of supply chain network efficiency. That means connecting supply chain analytics to customer-facing and business-to-business (B2B) systems.
Within the supply chain network, human involvement will always be necessary somehow. But embracing supply chain automation and artificial intelligence (AI) advancements invigorates optimization efforts. It will help to modernize the flow, making it more profitable from start to finish.
Partnering with a logistics data leader is the greatest investment you can make. Optimizing day-to-day tasks and overarching processes will always save time, money, and resources. Visit Intelligent Audit to request a consultation. And learn how your enterprise can achieve marked improvements with data-driven decision making.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.