Sales and Fulfillment
How do managed logistics services improve supply chain efficiency?
Supply chain management has become one of the key focus areas for modern businesses as a robust supply chain network is crucial to ensure timely deliveries and meet customer expectations even in the face of various disruptions. However, businesses often make the mistake of overlooking logistics management, which is responsible for ensuring that customers receive their goods at the right time and in pristine condition.
Logistics costs often represent 12% to 20% of the revenue; but with the right approach to logistics and supply chain management, businesses can significantly reduce these costs without compromising customer experience. But what constitutes logistics management, and how can it improve supply chain efficiency?
Connecting logistics management and efficiency
Logistics management encompasses the management and coordination of personnel, resources, and information across different systems to ensure goods reach the right place at the right time without damage or compromising quality.
Focusing on logistics efficiency by tracking the movement of products and optimising the flow of information and goods can help businesses ensure quick and cost-effective delivery and enhanced customer satisfaction. This, in turn, can result in enhanced supply chain efficiency and a sustainable competitive edge.
Improving supply chain efficiency with managed logistics services
The interdependencies of supply chain and logistics mean an efficient logistics system is a crucial aspect of an optimised supply chain. Here are some ways managed logistics services can help optimise logistics operations for enhanced supply chain efficiency:
Streamlined processes
Logistics services can help you streamline various supply chain processes, including shipping, receiving, warehouse management, transportation, and many more. This enhanced efficiency can eliminate waste in terms of time and resources, offer real-time insights enabling you to respond quickly to any disruptions and ensure complete visibility while maintaining customer satisfaction levels.
Optimised inventory and warehouse management
Inventory and warehouse management are crucial elements of logistics management that can significantly impact supply chain efficiency. Companies can ensure they carry optimal inventory levels and efficient warehouse operations for a streamlined order fulfilment process with minimal delays and reduced operational costs.
Automation
With the right logistics management technology, you can automate different facets of the logistics process, including order processing, shipping labels, or tracking, to save time, improve accuracy, and boost overall logistics efficiency.
Improved communication
Communication is the key to efficiency in logistics and supply chain management. Effective logistics management tools facilitate clear communication and collaboration between different stakeholders involved, promoting transparency and visibility while lowering the chances of errors and delays.
Data-driven decision management
In today’s data economy, advanced analytics tools are essential to monitor KPIs, identify areas for improvement, and grab emerging opportunities as market trends change. Managed logistics services can help you leverage advanced analytics capabilities to uncover actionable insights into various facets of the supply chain. This way, you can take a data-driven approach to improve and optimise supply chain efficiency.
Common supply chain and logistics challenges
Logistics is a critical, albeit complex, aspect of supply chain management. Businesses cannot avoid many common logistics challenges when trying to optimise their supply chains. Some of the most common and significant challenges include:
Rising costs
Logistics costs include everything from warehousing, fuel, and insurance to taxes and personnel expenses. These costs have been on the rise for the last few years, making fast and reliable shipping expensive. This affects the overall profitability of many businesses, with companies selling low-value items facing the brunt of this issue.
Customer expectations
Next-day or same-day delivery are no longer value-added features but a normal expectation for most customers. Without highly efficient shipping and logistics operations, businesses can no longer meet these expectations.
Visibility
As your operations grow and the more moving pieces you must manage, the risk of logistics efficiency issues cropping up increases, especially if you do not have the right tools to ensure end-to-end supply chain visibility.
Regulatory landscape
Bureaucratic red tape and evolving regulatory compliance requirements plague businesses, especially when addressing supply chain and logistics operations across international borders. Keeping track of ever-changing permit processes, taxes, and other regulatory requirements can be a major challenge.
Investing in tech-powered managed logistics services and third-party logistics partners can help businesses overcome these challenges and enhance supply chain efficiency.
How can Infosys BPM help enhance supply chain efficiency?
Effective logistics management is one of the building blocks of supply chain efficiency, with modern logistics services helping businesses leverage advanced technology and data-driven insights to optimise their supply chain operations. Infosys BPM offers a suite of managed logistics services, encompassing everything from transport planning and execution and freight claims management to analytics and design and compliance management. These specialised services can help you minimise operational costs, ensure global logistics compliance, and drive sustainability across the supply chain and logistics value chain.
