Best practices in logistics and supply chain management
March 18, 2019
FOX Brasil Tips for Freight Forwarders
Doing effective logistics and supply chain management is a challenge for most freight forwarders. However, any entrepreneur should know that running a good management system is the key to success, especially when it comes to the logistics segment. All stages of the processes conducted by your company should be streamlined and coordinated in order to avoid problems that could compromise the outcome of each operation.
If you aren’t sure how to improve your business management practices, here are some crucial tips that can make your processes much more efficient. Enjoy your reading!
How to improve your logistics and supply chain management?
Cash Flow Control
Taking care of the financial aspect of your freight forwarder is one of the main obstacles when we talk about management, and most certainly a crucial one to ensure the success of any business. For this reason, as part of your managing strategy, you should use metrics to keep track of your company’s cash flow and manage all your bills and expenses, making this a daily task.
There are many cash flow management tools available for you to accomplish this task. These tools have been any manager’s greatest allies when it comes to monitoring finances, providing them with an easy and automated way to access and control all information regarding their business’ book records.
Focus on strategic planning
When talking about measures to improve your logistics and supply chain management, we can’t forget to mention strategic planning. At this stage, the weaknesses, strengths, opportunities, and threats faced by your business will be evaluated.
After analyzing the context in which your business is inserted, which includes competition, main challenges and the current conditions of the market, the manager or entrepreneur will then create strategies to make the company more competitive, identifying indicators, targets and action plans that should be put into practice.
These actions range from internal efforts to the use of external opportunities such as changing suppliers or developing new partnerships.
Have a contingency plan
Regardless of how good your plan is, it is impossible to assess and prepare for every eventuality that your business might face. Logistics processes are constantly subjected to be affected by multiple factors, and therefore, a good manager should know their work is far from being done after their business plan has been made.
It is important to keep a close eye on the performance of your supply chain and know how to adapt the original plan in case any problem arises or, depending on the circumstances, even come up with a backup plan to prepare for a specific situation.
Innovate in your processes
With the development of technology, companies and customers themselves have adopted new exigencies. And in order for your business not to stay behind the competition, it is important to keep up with these innovations.
Unlike what you might think, investing in innovation is not necessarily about making technology purchases that could unbalance your company’s finances. Instead, you should bet on creativity by offering products and services that somehow innovate in the market and aggregates value to what your business is selling.
Remember to research the market trends, get to know your target audiences’ interests and what you can do to please them even more, offering experiences that can increase your business’ credibility and customer loyalty.
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