What is Smart Logistics?
Since 2020, we have been living in a pandemic. This has made a lot more consumers start buying online besides the ones that were already doing so before. This has put an extra burden on companies, especially in what concerns delivery. As you can imagine, you can’t look at logistics the same way you did a few years back. Nowadays, you need to look at smart logistics since it’s a way to gain a competitive advantage. More and more companies are already using smart logistics solutions that include scalable, flexible, and future-oriented technologies to make operations more efficient, effective, and smarter. Traditional supply chains aren’t enough anymore, and companies need to come up with smart solutions to achieve supply chain competitiveness.
What Smart Logistics Operations Involve?
Some logistics operations may include the use of radio-frequency identification. This should allow productivity to improve in the warehouse as well as the product flow. But more than this, it is also important to consider the use of sensors on vehicles or smart meters on routes to get more transparency as well as data that can be analyzed.
Example-1 DHL:
One of the smart solutions for logistics DHL is using smart trucks with sensors. Simply put, they allow the company to know where the cargo is in real-time, besides regulating temperature.
Example-2 CARREFOUR:
Carrefour, a European retailer, is using blockchain to track its iconic chicken product. With this technology, the company tracks and traces stock cuts and labor costs reduce waste and keep supply information in real time.
It can be understood in more detail during the Supply Chain Management Certificate Course and Professional Diploma in Supply Chain and Logistics Management, which is offered by AIMS’ institute of supply chain management.
Benefits of Using Smart Logistics Solutions:
There are many benefits you can get from using smart logistics no matter the area or niche you operate in.
1: Ensure Production Quality By Anticipating Product Damage:
One of the main goals of a company is to deliver its products to consumers in a fast and efficient way. However, at the same time, companies need to make sure that product damage is avoided. While there is always a percentage of damaged products, your goal is to make this number a minimum.
Overall speaking, a company needs to ensure that its production processes run smoothly. But more than this, it also needs to prevent defective parts or products from being assembled. However, if a company deals with sensitive products that may break or deteriorate over time or when not kept at a specific temperature, for example, it needs to be extra careful.
2: Production Planning – Detecting Delivery Shortages:
Another major benefit of using smart solutions logistics is related to detecting delivery shortages. The truth is that many materials take a lot of time to arrive at the production site. Some even need to change transport several times along the way. Generally speaking, there are always some blind spots along this route where you don’t have any information regarding these materials. Although this happens when materials are transported by land, if they are transported by sea the problems can be even bigger. Just think about storms that can hit ships not to mention port problems that can lead to delays in operations and supply chain management.
The worst part of this all is that it may take you a lot of time, even weeks, to discover what’s going on and to fix it. Naturally, this causes disruptions in production. Again, using smart logistics solutions, you can better control your materials and keep track of your current stocks and where the materials you ordered are in real time.
3: Ensure Delivery Reliability:
There’s no question that delivery delays cause a lot of financial damage to a company. This is another reason why you should consider using smart logistics. After all, it will help you answer many questions such as How reliable is my supplier? Is it possible that problems will arise again because he has already exceeded On-time Delivery (OTD) in the past? and Will he actually deliver the agreed quantities within the agreed period?
5 Smart Logistics Strategies to Boost Your Business:
With the increased pace of business, staying ahead has never been more crucial. To do that, you need to stay on top of every aspect of your operation. To help you with this, we’ve compiled a list of the best strategies for boosting your business. These tips and tricks will help you streamline operations for greater efficiency and better performance in everything from inventory management to customer service. Read on to learn how these smart logistics strategies can transform your business and thrive in today’s competitive environment.
1. Improve Your Operational Efficiency:
The first step in boosting your business is improving your operating efficiency. This means automating where possible and streamlining manual processes. You should also look to optimize your operations by segmenting your customers and focusing on the most profitable items. For example, it’s worth focusing on high-value items like food and beverages, which have high margins and account for a large percentage of your sales. Also, focus on products that aren’t seasonal to boost your sales. If you have specialized equipment, you should look into ways to operate it more efficiently. If you process similar products, you can also look into reducing overhead by sharing the equipment between products.
2. Educate and Engage Your Workforce:
The next smart logistics strategy is educating and engaging your workforce. This means educating your employees about your business and giving them the skills they need to grow their careers with you. This can be done through training programs and educational programs for frontline staff and managers. You should also be engaging with your customers, as this will give you a better picture of your needs and how to meet those needs. For example, if you sell food products, you should look into how to handle food safety issues in your operation. This will help you boost operational efficiency and boost your business.
3. Automate Where You Can:
Another key logistics strategy is automating where you can. This includes operating a 24/7 shipping system, using tracking software, and collecting data to optimize your processes. This can also include automating certain functions like inventory management, packing, and shipping. For example, if you operate a one-person office with few employees, you should consider operating as a virtual office. This can help save on overhead costs like rent, utilities, and insurance by operating from a location that’s close to your customers. If you don’t have access to equipment or have limited space, operating as a virtual office can also help you boost your business.
4. Invest in Technology:
When it comes to boosting your business, investing in technology will help you maximize your efficiency. This includes using cloud-based software and digital devices to boost your productivity. It’s also worth investing in technology that can help you boost your operational efficiency like sensors that track and monitor your in-warehouse operations. You should also look into digital inventory management software, which can help you manage your inventory and expedite the creation of shipping plans. You should also invest in technology that can help boost your customer service, like virtual receptionists or chatbots that can handle customer inquiries.
5. Trust is Key:
Trust is the final key to boosting your business, and it’s one that you will find difficult to boost. When you work with suppliers and customers, you need to trust their integrity. This means that you need to perform due diligence on each party, as well as be confident in your decision-making. This will help you boost your business and boost your profit margins.