6 Ways to Increase Efficiency In Logistics Management

8 min read
Vlad Kovalskiy
November 16, 2021
Last updated: January 17, 2024
6 Ways to Increase Efficiency In Logistics Management

Customer experience and the success of your business rely heavily on your logistics processes, especially if your business involves the physical movement of tangible products and goods. Logistics management can be the most tedious and challenging part of any business but, if done right, it can also be satisfying and increase efficiency quite attainable. As with anything when managing a business, careful planning needs to be done beforehand. Useful tools, capable staff, and a foolproof system all come together in aid of consistently effectual execution.

A lot of factors have an effect on how well your logistics management performs but there are a lot of ways of improving efficiency in logistics management. You only need to know where to look for what you need and how to get them. Here are the 6 ways to increase efficiency in logistics management.


Benefits of efficient logistics


The efficiency of logistics affects more than just supply and demand. If you look closer, you’ll see that a lot of the things that are going on in your business are a direct result of your efficient logistics management. They are some of the following:

  • Loyal customers – Efficient logistics management ensures the reliability of your company’s shipping and delivery timeframe. This consistency and dependability are not only pleasant for customers and clients but also impressive, inspiring them to keep coming back.

  • Referral customers – Nothing gets a business name around better than word of mouth. If you have happy customers, you can be sure they’ll be talking about why and what is it about your business that makes them happy, encouraging more people to give your company a try.

  • Happy employees – If the business flow is well looked after thanks to efficiency in logistics management, your employees will be less stressed, more satisfied with their work and more willing to provide optimum customer service.

  • Good business flow – Proper logistics management reduces errors, protects your company’s integrity and safeguards your business from stock-keeping challenges that can wreak havoc to your daily operations.

  • Monetary savings – Errors, delays, and inconveniences, no matter the size, cost money and this is money that you can be spending on other more worthwhile things like employee incentives or infrastructure improvements.

  • Improved marketability – If you excel in logistics management, you’re bound to be known for it. Pretty soon, your business will be known for being consistent in delivering quality products or excellent services, thus increasing your business’ profitability and marketability.

There are a lot more benefits that your business can enjoy from efficient logistics. If you’re ever wondering how or where to start, here are the 6 ways to increase efficiency in logistics management to help you out:


1. Thorough and careful planning


Although you might want to go into battle with guns blazing, you can only win the war with proper planning. Being able to come up with your roadmap to success and being able to foresee stumbling blocks, challenges and derailments is key in getting started to efficient logistics management. You need to come up with a comprehensive plan that tackles details that include the following:

  • The product or service you’re transporting.

  • Possible issues like unavailability of transportation, non-working holidays or staffing shortages.

  • Internal problems within the company.

  • Unreliable shipping partners.

  • Inaccurate inventory.

  • During the planning stage, you need to get a lock on the following:

  • Procurement of supplies.

  • Reliable supply chain.

  • Secure and safe storage of products or services.

  • Realistic delivery timeframe.

Knowing what is required of you, being able to foresee possible problems down the road, and securing the supply chain for your product or service ensures that you have an efficient logistics management plan in place.


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2. Overall better management 


Efficiency in logistics management involves being able to stay on top of everything whether it’s supplies, staffing, transportation, or something else entirely. Contingency plans should be in place in anticipation of problems arising here and there. You can’t afford to be caught unaware so it’s better to be prepared for anything. Is this even possible? We say a resounding “YES!”.

Bitrix24 makes it all possible with a click or a tap. Thanks to Bitrix24’s impressive suite of solutions targeted to transportation and logistics, you have full access to tools that will help with your document management, tasks and project management as well as your very own CRM. You’ll be able to plan for anything, even little accidents and changes to your customers’ needs and demands.


3. Inventory and Stock Management


Think of it this way: you won’t know how many customers you can cater to without knowing how much stock you still have left. Part of efficient logistics management is being able to see trends in the demand of your target market so you’ll be able to deliver flawlessly. You need to be able to look at reports of how stocks are being used up as they come in so you can make adjustments if needed.

Look into employing an inventory clerk or stock-keeping manager to help you keep track of how your stocks flow in and out. You need someone who knows how to come up with a comprehensive report that’s also easy to understand, to help with your daily operations. There’s nothing worse than having to apologize for overselling your products and asking paying customers to wait for their orders.


4. Total and open communication


For a machine to work properly, it should be well-oiled and that oil should be able to free flow within the said machine. Same with your company and the movement of your stocks in accordance with the needs of your customers. Nothing improves efficiency in logistics management than good communication. This covers communication with your customers and suppliers, contractors, and direct employees. If you miss one link in the chain, it will break.

Bitrix24 bridges the gaps created by distance and time with well-built tools to aid in cultivating your communication with everyone else. Enjoy real-time communication with the use of a telephony system, chat and video conferencing as well as audio calls. With Bitrix24, getting in touch and keeping in touch – whether it’s with your customers, suppliers, or staff – is much easier.


5. Route management


Route management goes beyond finding shortcuts to cut down on transport time and shorten delivery ETAs. More and more consumers are becoming aware of the meaning of “carbon footprint” and “going green”. It’s up to you to pay attention and make the necessary adjustments to show everyone that you not only have an efficient logistics management in place but you’re also socially conscious and responsible in business.

Make space in your plan for route management, to plan two or more courses from one point to another in case one way is inaccessible. Being diligent in this manner will also help cut your delivery timeframe to further impress your customers and clients as well as cut your fuel consumption. Another upside is that you will be helping the environment in your own little way.


6. Modernize, automate and integrate


Take a step back and look at your current processes, tools, and workflows. Is it time to modernize some things? Is it time to get rid of old tools and bring in new ones? Are there other apps or software that you wish to use that will be beneficial? Every day, there are new innovations to improve the efficiency of the logistics, transportation, and storage industry and you can get your hands on these innovations to help your business.

Aside from high-quality and user-friendly communication tools, Bitrix24 also allows you to manage tasks and projects so you won’t miss out on important deliverables and deadlines. Bitrix24 also has task management and time tracking tools that you and your team can use and, of course, you can also integrate over 300 apps and tools that you may need.


The last stop


Efficiency in logistics management or the lack thereof affects more areas in your business than you may be aware of. The good news is, you don’t have to go it alone. You will have your team with you along with your partners, suppliers, and contractors.

You also have Bitrix24 and its full collection of tools that will be profoundly helpful to your business and its logistics management needs. Spruce up your team, task and project management schemes, communicate with clients, customers, and suppliers in real-time, keep documents and files secure and easily accessible at the same time, and automate processes and workflows for optimized productivity. The best bit yet, Bitrix24 is absolutely free! Sign up today and take your business to new heights.

 


FAQ

What logistics management is?

Logistics management is a subset of the grander schema of supply chain management. Its aim is to orchestrate the flow and warehousing of goods, services, and related intelligence from their inception point to their ultimate consumer destination, all with an intention to satiate customer needs.

What methods can be employed to augment the efficacy of logistics management?

To sharpen the edge of efficiency in logistics management, an eclectic mix of strategies can be brought into play: automation, perfecting transportation paths, efficient stewardship of inventory, embracing technological advancements, empowering the workforce through training, and fortifying alliances with suppliers.

How can the introduction of automation bolster efficiency within logistics management?

The induction of automation into the logistics ecosystem can act as a catalyst, expediting operations, minimizing human-induced discrepancies, escalating precision, and enhancing productivity.

Why does inventory management hold a pivotal role in improving logistics management efficiency?

Mastery over inventory management creates a balance between supply and demand. It mitigates the expenditure on storage while precluding situations of stock scarcity or surplus.

In what ways can technology act as an ally in bolstering logistics management efficiency?

It facilitates real-time tracking of goods, paves the way for data-driven decision-making, and refines various logistical processes. Together, these advancements coalesce into an enhanced logistical efficiency.

Could you expound on the importance of workforce training in logistics management efficiency?

The cornerstone of enhanced logistics management efficiency often lies in robust staff training programs. Such initiatives equip the workforce with the required competencies and wisdom to execute their responsibilities with greater efficacy and efficiency, thereby driving productivity and logistics efficiency upwards.

How can a robust relationship with suppliers augment logistics management efficiency?

Cultivating resilient ties with suppliers can create a conduit for effective communication, increased dependability, superior negotiation prowess, and potential cost reductions.


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Table of Content
Benefits of efficient logistics 1. Thorough and careful planning 2. Overall better management  3. Inventory and Stock Management 4. Total and open communication 5. Route management 6. Modernize, automate and integrate The last stop FAQ What logistics management is? What methods can be employed to augment the efficacy of logistics management? How can the introduction of automation bolster efficiency within logistics management? Why does inventory management hold a pivotal role in improving logistics management efficiency? In what ways can technology act as an ally in bolstering logistics management efficiency? Could you expound on the importance of workforce training in logistics management efficiency? How can a robust relationship with suppliers augment logistics management efficiency?
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