What is the goal of Logistics?

What is the goal of logistics? 

Logistics plays an important role in the world when it comes to creating value and fulfilling demand.

But how do logistics companies create value and meet their customers’ requirements? Well it essentially all boils down to efficiency and overall good customer service and support.

Here are 5 logistics goals to strive for to ensure that your logistics efforts create consistent value that will help you to meet your customers’ requirements.

1. Respond rapidly to changes-in the market or customer orders

Being alert and having the ability to quickly respond to sudden changes in the market can be the difference between outstanding or really poor customer service.

For example, following the Suez canal blockage, many logistics service providers needed to act quickly to find alternative modes of transportation to meet the customers requirements on time, many quickly resorted to air freight and were able to meet their customers’ requirements on time.

2. Minimize variances in logistics service.

If you are able to successfully minimise variance in your logistics services, you will be able to make better forecasts and decisions because you essentially have less unknowns. This is extremely valuable when it comes to planning. It also helps you to operate optimally or more efficiently.

3. Minimize inventory to reduce costs.

Holding extra inventory results in increased storage costs. It’s important to have enough inventory in order to satisfy customer demand, but there is a fine line between having enough inventory to meet demand and having too much inventory that eats away at your margins because of the storage costs. Striking the right balance here is key and can be done when using the right inventory strategy and monitoring in place for demand forecasting etc.

4. Consolidate product movement by grouping shipments.

When you consolidate products, you are essentially bundling many smaller shipments into one large shipment. The benefits in doing this include lowering the unit cost of transport, and it can help to reduce your carbon footprint by moving more goods with less resources. Goods can be consolidated between multiple shippers, shippers can then offer carriers enough freight to fill containers. This can create a better relationship between carriers and shippers and even create long term partnerships.

5. Maintain high quality and engage in continuous improvement.

By maintaining a high quality of service, you will be able to ensure that your customers’ requirements are being met consistently. This will create repeat customers and can strengthen your business’s reputation and revenue streams. When it comes to continuous improvement, this again refers to being able to operate optimally, and by continuously improving you will be creating more and more value to your customers.

TrustedTrucks can help you to minimize variances in your logistics processes

TrustedTrucks is a transparent and easy to use qualification platform. By optimising and automating the qualification process TrustedTrucks helps you to remove complexity and save time during qualification, which in turn helps you to get transport orders out faster.

Connect with service providers in a few quick clicks and establish new business relationships all in one place on the TrustedTrucks network.