For any company, selling means at least surviving and, in the best case, growing and expanding. But in order to be able to sell in different markets and channels, which are increasingly saturated and competitive, in addition to good sales, the company must offer products at prices similar to those offered by the competition.
In order to do so, any company, regardless of its size, must optimize all its processes , that is, achieve or improve the planned objectives, using the same resources, if not fewer.
This requires planning and coordination of the different departments or areas of the company. For example, production costs can be reduced by planning raw material purchases annually instead of several times a year, thereby achieving savings in volume, or by establishing staff shifts and holidays based on the defined annual demand. To achieve this, it would be necessary to establish an annual sales forecast and with it the number of units and references that will need to be manufactured each month, season or specific period.
Quality management systems based on the ISO 9001 standard or electronic process control applications such as ERP systems can be very useful in this function.
But in addition to the production processes, the effort to achieve business efficiency that translates into competitive prices must extend to the logistics function. Under the logistics function we find the different processes and activities kuwait mobile number example related to the supply and storage of raw materials and components , as well as the management of orders in the warehouse, the dispatch and transport of manufactured products to customers.
Process optimization and cost reduction
Optimizing logistics processes not only saves time for operators in warehouse or transport processes, and therefore money, but also improves customer service, because products will arrive in the shortest possible time and the number of incidents, delays and returns will decrease.
There are numerous tools and strategies to improve the activities of the logistics function, which can range from the correct location of inputs and outputs of materials and products, the layout of the production chain and the warehouse, shelves and references, to augmented reality tools that improve order preparation times.
But nowadays, optimising a company's logistics function is not limited to planning and managing processes in its facilities. For example, companies that have a fleet of delivery or distribution vehicles must take fuel consumption into account as a critical optimisation element. In this case, correct planning of transport and routes to ensure that vehicles travel with the greatest possible load, as well as constant training of drivers in efficient driving styles or the use of more efficient vehicles can be of great help to the company.
In this effort to optimize the logistics function, it is increasingly common to include suppliers and even customers , using systems and tools that can be integrated with those of other companies. For example, sharing electronic order management systems with customers or suppliers, something common in ERP systems, produces considerable savings in the administrative function and allows order times to be shortened, even if customers are in other countries or territories.
logistics warehouse
Costs of international operations and e-commerce
The commitment to cost optimization can be extended to the company's operations, both import and export to different countries. To do this, in addition to correct reception, management and transmission of the order to the production area, a thorough preparation of the necessary documentation, insurance and certificates that accompany the orders will be necessary to avoid involuntary losses or retentions of the orders in different international customs.
Managing the best logistics routes, times and costs of international transport, in coordination with the transport provider, whether carrier or logistics operator, will save time and money and improve the customer's perception of the company's image, predisposing them to new purchases.
Similarly, cost optimization of the logistics function must be applied to e-commerce systems, where orders are smaller and more numerous, not only to the delivery of orders, but also to so-called reverse logistics, which is applied to the return of orders.