Operational excellence is essential for success and sustainability in the logistics sector. However, trust issues plague the industry, especially with third-party brokers. Addressing these issues is crucial.
Let us explore how controlling logistics and supply chain management can build trust and ensure operational excellence.
In the globalised business landscape, supply chain management plays a pivotal role in the success of organisations across various industries.
The efficiency and effectiveness of supply chain operations can significantly impact a company's profitability, customer satisfaction, and overall competitiveness.
However, one persistent challenge in supply chain management is the lack of collaboration and trust among supply chain partners.
A lack of trust can affect business relationships and operational success. There are several factors contributing to trust issues:
Two main types of fraud, double brokering and load phishing, are particularly problematic.
These fraudulent practices not only cause financial losses but also damage the reputation of businesses and the industry.
The risk of cargo theft, especially for high-value goods, is a growing concern.
According to the Transport Asset Protection Association (TAPA), cargo theft during road transport across Europe, the Middle East, and Africa (EMEA) amounted to over €172 million in 2020.
High-profile cases, such as Blue Water Shipping overbilling for freight services that were never performed and for improper markup allegations and banks facing losses due to falsified shipping documents, highlight the severity of the issue.
However, while combating fraud remains paramount, another pivotal aspect shaping the industry's landscape is the significance of customer service.
Ensuring timely delivery of the right product in the right condition, place, time, and price is critical for success in logistics.
Companies must exceed customer expectations to gain a competitive edge, managing the entire customer journey from order placement to delivery.
Exceptional customer service builds strong relationships, enhances reputation, and drives business growth.
Research shows that personalised service leads to increased spending and sales growth.
However, failing to address customer service concerns can have severe consequences.
A significant 70% of buying experiences are influenced by how customers feel they are treated, and 90% worldwide consider issue resolution their top customer service concern.
Logistics disruptions, inaccurate order processing, communication breakdowns, poor product condition, and inefficient returns management are common challenges leading to customer dissatisfaction.
Addressing these issues is essential for delivering exceptional customer service and maintaining a competitive edge in the logistics industry.
Let us delve into some effective strategies to drive continuous improvement in operations and achieve operational excellence.
Increased supply chain visibility enhances customer satisfaction by simplifying processes and providing instant gratification. Transparency, including shipping information and price comparisons, builds credibility and trust.
Offering tracking updates and transit times keeps customers informed, enhancing the overall brand experience.
Leveraging technology is pivotal in enhancing operational efficiency and decision-making in today's logistics landscape. Innovative solutions such as Artificial Intelligence (AI), the Internet of Things (IoT), and data analytics provide real-time insights and automate routine tasks.
AI aids in demand forecasting and route optimisation, while IoT devices enable real-time tracking of shipments and inventory. Data analytics facilitates informed decision-making based on insights from large data sets, improving accuracy, speed, and reliability in logistics operations.
Customer-centric logistics operations are vital for achieving operational excellence:
Setting specific logistics performance management parameters is crucial for tracking operations and making informed decisions.
Key Performance Indicators (KPIs) such as order accuracy, on-time delivery, lead time, stock rotation, warehousing costs, truck turning, capacity utilisation, productivity, transportation costs, and number of shipments act as benchmarks for measuring performance and identifying areas for improvement.
While 82% of shippers believe technology will make KPI management easier in the next two years, the majority of businesses still rely on spreadsheets.
Paper documents dominate the global cargo trade with four billion in circulation at any one time, posing challenges such as easy falsification, loss, and time delays.
Embracing technology for KPI management streamlines operations enhances accuracy, and improves efficiency in logistics processes.
Incorporating these strategies and embracing technology are essential steps toward continuous improvement in operations and achieving operational excellence in the dynamic and competitive logistics industry.
Selecting the appropriate technology is crucial for continuous improvement in operations and achieving operational excellence in logistics. Here is why:
Selecting the right technology that optimises operations through data-driven insights, you can streamline processes, enhance productivity, and stay ahead in this competitive landscape.
Achieving operational excellence in logistics demands a strategic blend of trust, technology, and customer-centricity.
From combating fraud to embracing innovative solutions, companies must navigate challenges while prioritising transparency and efficiency.
By leveraging cutting-edge technologies like CtrlChain system and fostering strong partnerships, logistics firms can streamline operations, exceed customer expectations, and drive sustainable growth in their dynamic landscape.