What is supply chain and logistics management?

Supply chain and logistics management is the entire process that refers to the coordination of logistical processes and how they are carried out from the place of origin to the final destination. For example, cargo movement from the place of manufacturing to the city where the cargo is to be delivered refers to supply chain and logistics management. The objective of supply chain and logistics management is to ensure that all logistical activities are carried out in time and ensure visibility of all logistical activities in the supply chain.

Tips for better logistics supply chain management

Every company has the aim of constantly improving their logistical management functions. Improvement of supply chain and logistics management functions helps improve the efficiency of logistical processes and improve the company’s profitability. We’ve listed some tips for better logistics supply chain management in this blog post. Read on to learn more about them.

• Ensure proper planning

Businesses must plan before efficient logistical processes are executed in an organization. Good planning helps companies ensure that the proper logistical activities are carried out within a specified time frame. To ensure proper planning, companies must analyze the entire logistical process and check whether the techniques are helping the business achieve its end goals. For example, if a company aims to transport products to their end destination within a specific time, the routes, trucks, product loading, and unloading points, etc., must be planned out in advance. Moreover, planning helps ensure that there are no delivery delays, ensure efficient supply chain management, and is crucial for client satisfaction.

• Reap benefits of technological innovation

Companies cannot ignore the importance of adapting to the latest technological processes in today's modern era. Technology is changing rapidly, and adopting it in a business can help speed up the pace of logistical processes. Examples of technological innovation include artificial intelligence, robotic process automation-based business capabilities, and data-based analysis of trends related to a company’s logistical operations. For example, businesses can track the entire route followed by a truck operator, analyse the time taken on routes, identify truck drivers at entry and exit points, etc., helping reap the benefits of digitalization across the logistical network.

• Optimize routes

Whenever cargo needs to be transported from one location to another, a transporter follows a specific route. Over time, the business can optimize this route to minimize the idle time (for example, when the truck driver may be traveling across locations without any products in their truck). Additionally, route optimization ensures that the driver follows the route that takes the least time to fulfill cargo deliveries efficiently.

• Collect and analyze data

Data is the backbone of every business. Daily, a company can gather data like the number of trips across cities, the number of deliveries fulfilled, etc. Hence, a digital logistics partner must collect and analyze this data to help you understand the future course of action you must take in your business. For example, assuming that cargo is transported to Gujarat from Delhi each day, data can show whether the transporters transported all freight to the destination. If the data shows unfulfilled deliveries, the cause of the unfulfilled deliveries can be analyzed, like route diversions by truck drivers, a breakdown in the truck functioning, etc.

• Measure and optimize metrics

Supply chain management is more than just the logistical processes, and it extends to analyzing them and refining them based on metrics. Some metrics include the number of shipments, delivery time, and the average number of days delivery is late.

-Number of shipments:

The number of shipments that drivers transport from one location to another must be considered. Next, whether the trucks have additional capacity to transport more cargo must be judged. Businesses can optimize the number of trucks and cargo based on this number.

-Delivery Time:

Analyze the number of days it takes for cargo to reach the destination point once it has left the source of origin, like the warehouse. Based on the delivery time, businesses can analyze whether this delivery time can be reduced for faster deliveries, whether the business can change routes to reduce the delivery time, etc.

-Average Days Late:

A significant reason due to which customers are dissatisfied is late deliveries. If the truck drivers are transporting the cargo late at the final destinations, the business must identify the causes for the same. Then, the business must take actions to reduce the number of days on which cargo transportation is late, like inefficient planning before the trip, the wrong route being followed by the truck driver, and so on. Based on the metrics mentioned above, the business can plan out the corrections and actions to improve metrics. Moreover, these metrics may reveal any flaws in the logistics management functions and companies can then take the right steps to overcome them.

Based on the tips regarding logistics supply chain management, we hope you’ve obtained a better understanding of how to bring efficiency to your logistics ecosystem.