The key logistics trends include six major areas where clients frequently seek our help. Effective warehousing and inventory management are prominent among these trends.
How crucial are these factors for enhancing logistics efficiency? Addressing these challenges effectively can significantly impact overall operational performance.
Curious about the specific trends? Watch the full video below to discover more and stay informed.
There are six critical areas in logistics that I believe deserve our focused attention. From my experience with over 200 global client assignments each year, these priorities are essential to balancing high service levels with cost efficiency in today’s evolving landscape.
Warehousing
One major challenge is managing warehouse capacity. Many businesses face constraints due to higher inventory levels and limited space. For instance, one client increased warehouse capacity by 30% by reorganizing racking systems and incorporating articulated forklifts. Improving warehouse productivity often means rethinking layout, optimizing aisle widths, and refining slotting strategies to make the most of available space.
Outsourcing
Outsourcing continues to be a popular solution, especially for those struggling with capacity issues or dissatisfaction with current providers. However, finding the right warehousing and freight partners is becoming tougher due to industry consolidation and resource shortages. To successfully navigate this, businesses need to prepare meticulously, position themselves as appealing partners, and allow sufficient time for the outsourcing process to unfold.
Freight
Freight management poses its own set of challenges, including rising costs and the need for efficient handling and route planning. Companies often encounter issues with rate structures and cherry-picking, which can be unsustainable. By presenting freight in a manageable way and avoiding rate cherry-picking, businesses can mitigate costs. It’s crucial to conduct accurate rate assessments and understand freight profiles to optimize transport expenses.
Inventory
Effective inventory management is crucial, particularly in sectors like mining where managing large, costly spare parts is complex. Balancing inventory involves accurate forecasting, reducing obsolete stock, and ensuring high inventory accuracy. Utilizing advanced classification systems like double ABC analysis can enhance inventory handling and help cut costs.
Find out the rest of the Big Six in Logistics by watching the full video.
For help with the Big 6 in your organisation, jump over to Logistics Consulting.
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated November 29, 2023, under the title “The Big Six in Logistics in 2023“.
