The main reason businesses often overlook these issues is that fixing them feels too complicated. Addressing loss-making products and customers requires a cross-functional approach, which means it’s not just about improving one area of the business. It’s a holistic problem that spans procurement, inventory management, customer service, and forecasting. Take low-margin products, for example. Companies often resist eliminating unprofitable products because they’re concerned about disrupting their product range or losing sales…
LOGISTICS
Easy Logistics Cost Reduction – But Few People Do This
Small orders are a hidden cost center. Most businesses have a mix of small, medium, and large orders, but the small ones are the real culprits when it comes to logistics inefficiency. They tend to cost more to process and deliver than larger orders, making them a prime area for cost reduction. By reviewing your order patterns, you can identify where smaller orders are unnecessarily inflating your logistics costs…
Order Profitability – Online Audit
All Supply Chain and Logistics operations leak profits. It’s natural. But are you aware of it? Sadly, normal reporting systems don’t report very well at a customer and product profitability levels. They tend to report aggregate figures. And so these very common losses are ‘hidden’ within the data. It’s very common to have at least 10% of your customers orders as loss makers. And I’ve seen as high as 81%…
3PL Logistics: How Quickly Can You Outsource Logistics?
When dealing with national outsourcing contracts encompassing warehousing and transportation, the timeline can vary significantly. It starts with defining the outsourcing scope…
Boost Your Logistics Performance With These Top 10 Tips! (Plus Extra Help)
Boosting logistics performance is like mastering a complex juggling act. Drawing from decades of consulting experience, here are ten expert tips to enhance your logistics performance effectively…
Logistics KPI Tips – Key Performance Indicators
A frequent mistake I see in Logistics is people tracking too many KPIs. I recommend sticking to about three or four KPIs for each level within your organization. For instance, if you’re managing a warehouse, you’d focus on three or four key metrics.
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The Big Six in Logistics in 2023
The key logistics trends include six major areas where clients frequently seek our help. Effective warehousing and inventory management are prominent among these trends…
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Fleet Route Optimisation in the Past, Present, and Future
Over a relatively short period, a transport or fleet manager’s ability to support an efficient distribution network through route and delivery optimisation has shifted from almost nil to almost limitless…
What’s Hot in Logistics?
During the pandemic, businesses stockpiled inventory to manage supply chain disruptions. Now, the focus is on reducing excess inventory and improving management practices. Companies are adopting advanced tools for better demand forecasting and inventory deployment. Many are still struggling with accurate demand planning, leading to inefficiencies like back orders and suboptimal inventory distribution across warehouses…
Freight Rates & Reducing Your Logistics Costs
Focusing solely on the freight “rate” can be misleading. When people try to lower freight costs, they often overlook crucial factors. Truly understanding freight rates involves looking at rate structures and consignment profiles, which your freight carrier already considers. By analyzing these elements, you can identify opportunities for significant savings…