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Optimize and streamline logistics
Reliable delivery of materials and goods to factories and customers can be a resource-intensive affair for both manufacturing and trading companies - but if the processes don't work, it can be downright life-threatening for businesses.
Conversely, well-oiled logistics can help ensure stable operations, growth opportunities and good customer relations.
At H. Daugaard , we have identified three focus points that all companies should periodically review to ensure optimal and efficient logistics:
- Logistics strategy
- Transparency and flexibility
- The number of collaborators on the job
- If you're strong in all three areas, you know you have an optimized and efficient logistics solution.
How often you should review your company's logistics solution depends on how much of your day-to-day operations are affected by logistics and how much of a cost logistics is to the goods and services your company provides, but a good rule of thumb is to review everything every 2 to 5 years.
Create an overall strategy for your logistics
Start by specifying the wishes and requirements for your company's solution. The more concrete and clear your strategy is, the easier it is to have a good dialog with different logistics providers about their ability to support your business. There is typically a good correlation between price and quality in the market, so it's a good idea to have a clear picture of how much good logistics affects your business. Is speed more important than price? Is delivery reliability more important than speed? Is smiling service more important than flexibility?
In the strategy, it is important to clarify, among other things:
- Whether overnight delivery is expected?
- Are there minimum orders?
- What flexibility is expected from the logistics provider?
- What are the requirements for delivery reliability?
- Are there seasonal fluctuations?
- Do the types of goods have special requirements for handling or storage, for example?
- Whether logistics has an impact on your branding - for example, as part of a sustainable transition?
You know your business and customers best, so it is important that you take responsibility for specifying the requirements and wishes for the logistics solution, but sometimes there may also be new opportunities that are overlooked. At H. Daugaard , we have the opportunity to act as a sparring partner and tailor a logistics solution that specifically fits your business, products and market.
Whether you choose to work with H. Daugaard or another provider, the strategy ensures that you and your logistics partner strive for the same goals. The better the logistics partner understands your business, the better service you will experience as you can get a customized solution.
Transparency and flexibility in logistics
When you choose to work with a professional logistics partner, you get access to the necessary expertise and advice to create the most efficient logistics set-up. Every manufacturing or trading company may have its own limitations in terms of volume and fluctuations, and in recent years we have seen that transportation from, for example, the Far East has been under pressure, which can make it expedient at times to secure larger quantities of raw materials and products so that your company does not experience the same fluctuations in delivery as the world market. Sometimes increased storage capacity will not only ensure your company's security of supply, but can also provide access to economies of scale that are not necessarily possible with just-in-time strategies.
For example, it can be strategically important to get raw materials to storage facilities close to production and finished goods to customers in your company's local markets - especially if customers' delivery requirements are extremely short. If logistics are complicated and opaque, it can be difficult to see where in the chain there are unnecessary risks and missed opportunities for improvement, which can ultimately mean lost revenue and productivity, as well as dissatisfied customers looking for other suppliers in the market.
Involve your logistics partner in the processes so that they are constantly optimizing and have an overview of the opportunities for economies of scale, risk minimization and streamlining administration, workflows and delivery speed without compromising security of supply.
The number of partners on the logistics solution
You and your company are always in the best position when you can see through the logistics - both in terms of warehousing and distribution. At H. Daugaard , we find that far too many customers accept more or less opaque solutions where responsibility is divided among many players. On paper, this may look like the cheapest solution, but experience shows that it is often expensive, administratively cumbersome and a source of errors.
If you want to work with several different partners on your company's logistics solution, you should at least ensure that there is a clear description of the entire process that takes place when goods are delivered - whether it's materials and raw materials for your own production company or products to be delivered to customers.
If there is a failure in one place in the chain - the whole chain fails
- And it can be difficult to fix it quickly when responsibility is placed on multiple actors.
At H. Daugaard , we have the option of receiving orders directly through our digital system, which ensures our customers transparency and traceability throughout the process. At the same time, we offer a dedicated contact person to ensure a high level of information and service. In addition to reducing the risk of errors to an absolute minimum, it also helps streamline the entire process, so we can often deliver faster and with more quality in the delivery than with logistics solutions where there are several players involved.
If you want to know more about warehousing and logistics, read on: Warehousing and logistics: How to avoid logistics slowing down growth
At H. Daugaard , we are always ready to review your current logistics solution and give you sparring on the possibilities for optimization and efficiency.
