Are unsung heroes residing in your transportation and supply chain departments?
From their dock and warehouse surroundings, logistics professionals use information flow, physical inventory flow, and financial flow to improve company profits. Read more.
Information flow
Information is power. Today’s technologies let you see and analyze your entire supply chain, and apply what you know to achieve better business outcomes. Purchase-order and vendor-management technologies automate these functions based on predetermined “rules” for inventory levels and replenishment protocols. They also measure vendors’ performances against these rules, which keeps everyone working on schedule. Once inventory is shipped, technologies let you keep track of it – down to the SKU level – and alert your customers and/or warehouse personnel as to its status. Proof of delivery also is automated, letting you invoice sooner and with the assurance that your bills accurately reflect shipments. Read more
Physical flow
Goods move from origin to destination, and logistics makes certain it happens efficiently and cost effectively. This is more than access to carriers and vessels. Consolidation practices can generate full-container and truckload shipments, which move at a lower cost. Activities such as kitting, light manufacturing or samples packaging, when part of a warehousing solution, add flexibility to your operations. Import and export oversight ensures the availability of required information and payment of appropriate fees to prevent delays or fines. In some supply chains, shipments can bypass distribution centers altogether and go straight to warehouses for deconsolidation, adding speed to the supply chain. Read more.
Financial flow
In the cash cycle, the less time money is tied up operating the business, the better the company’s financial performance. Logistics affects this cycle from the initial expenditure for goods until receipt of customer payments. Areas frequently impacted are measurable indicators such as days sales outstanding, cost of goods sold, days in inventory, fixed asset utilization and revenue growth. Read more.
If you have unsung heroes in your transportation and supply chain departments, maybe it’s time to say, “thanks.” If you think your organization could benefit from outside expertise, contact us. We’re all over logistics!