" The line between disorder and order lies in logistics. - Sun Tzu "
As perfectly expressed by Sun Tzu, many things depend on success of logistics. Every business must focus on a comprehensive logistics strategy that will help them to reach their customers easily. This puts huge responsibilities on logistics service providers as their performance is critical for the success of entire supply chain. The question that needs to be answered is what makes logistics organizations successful.
To manage the difficult logistics operations the LSPs must be more agile and extremely efficient. They must be proactive and anticipate the challenges beforehand than being reactive. Let us see how LSPs can be more successful –
1. Increase Productivity - Streamline and Mange Operations
In logistics, increasing productivity isn’t just about doing more shipments. Complicated processes and documentation brings down the productivity of logistics professionals. Successful LSPs automate their operations by using comprehensive logistics software which helps in streamlining the operational processes. Automation has helped LSPs to reduce Job Turn-around Time by lowering the amount of efforts for every task. With reduced documentation errors, automated report sending and eliminating duplicate data entry, LSPs have easily improved their productivity.
2. Control Cost - Control And Standardize Processes
LSPs that carefully plan and execute their logistics strategy can successfully control the cost to realize substantial business growth. Logistics companies have effectively utilized powerful software tools for significant cost control. By minimizing documentation errors and mistakes, LSPs have considerably reduced the costs. Maintaining & retrieving the best suitable tariff rates and Credit control mechanism allows LSPs to control the expenditures. Using KPIs and reports to monitor the variance between planned and actual expenses is also a proven way to control the costs.
3. Keep Customer Happy - Empower Organization to Sustain Growth
Customers today need their logistics partners to go beyond just delivering the cargo. Successful logistics service providers give better service experience to their customers. With logistics software, LSPs can send Customized Daily Status Report (DSR) or automated email and SMS notifications to their customers. LSPs can provide additional facilities to their customers with Web-integrated Customer Service portals and mobile apps. Interactive and automated visibility software provides real-time information of cargo. CRM solution helps logistics companies to manage entire customer life-cycle and generate valuable customer insights.
4. Stop Revenue Leakages - Enhance Profits
All the business functions and activities have an impact – positive or negative – on the revenue. Thus, eliminating revenue leakages is equally (or even more) important for profitable business growth. Logistics software allows LSPs to tightly integrate finance with operations which provides huge business benefits. LSPs can send alerts on outstanding dues & collections which improves fund-flows. Integration also helps to prevent unbilled service expenses and to build an approval mechanism to avoid over payment.
5. Consistency In Service - Alert For Any Fallacious Activities
LSPs must focus on managing the organization as a whole and must harness latest innovations in technology to provide consistent service to their customers. Integration of logistics operations with end-to-end software helps in standardizing the processes and increasing the efficiency. Mechanism to create Alerts and Notifications allows management to prevent costly mistakes. Effective work-flow management helps to eliminate bottlenecks and thus, the unnecessary delays.
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