.svg)
Warehousing and logistics: How to avoid logistics slowing down growth
If you take away just one strategic point from this post, we hope it will be "keep it simple".
"Keep it simple"
Most people are familiar with the expression and message that the simpler you can do something, the more likely it is that the result will actually be useful. Basically, when you ensure a simple and transparent set up of your company's logistics solution, you eliminate several sources of error.
Despite the fact that it has never been easier for people to communicate with each other than it is today, many can probably recognize that the more stages a message has to go through, the greater the risk of something being missed along the way. Ultimately, a single overlooked email can have a negative effect on a company's deliverability, bottom line and reputation.
We see many examples of companies that choose to work with multiple suppliers in the supply chain experiencing consequences that have a negative impact on the supply chain:
- Delivery reliability
- Errors in communication and handling of goods
- Flexibility in terms of delivery
- Bottlenecks in warehousing and distribution
In a nutshell: What's won on the carousel is lost on the swings. And that loss can have numerous additional costs in the form of dissatisfied customers, bad reputation and lost orders.
At H. Daugaard , we have worked to provide our customers with simple, customized and transparent solutions. We offer to handle the goods all the way from production to warehousing, picking and packing and delivery. This also applies to demanding types of goods, such as chemicals. In everyday life, this means that our customers have a single point of contact, and that H. Daugaard takes full responsibility for delivering the goods as agreed.
Numerous cases have shown us that when a company's logistics solution is as simple as possible, it ends up being more efficient in terms of cost, quality and delivery reliability.
Warehouse and logistics solution can make or break revenue
At H. Daugaard , we have been providing logistics solutions for more than 100 years. We specialize in optimizing logistics solutions in a variety of markets, and our many years in the logistics industry have given us great insight into the logistics challenges that new customers may bring with them.
It's this insight that enables us to identify the points above as the most common pitfalls. And it's that experience that ensures our customers a set-up without these sources of error. Over the years, we have all too often seen how a complicated logistics solution has resulted in high costs for a company because it has had a direct negative effect on the company's level of service to its customers - and thus also on the company's earnings and opportunities for growth.
Fortunately, we also have countless case studies that support our claim that a simple and efficient logistics solution supports a company's customer satisfaction, delivery reliability and growth potential.
Logistics solution is all about strategy
On a more strategic level, we have also learned that the logistics solution is crucial to meet market fluctuations.
Trends towards increasingly volatile markets have been around for years, but the recent corona crisis has highlighted that the right logistics set up is crucial for delivery reliability. We live in a time when the demand for a product can change very quickly, and the real limit to revenue and growth can quickly become logistics. Because how do you sell a product you can't deliver? How many resources does it take to maintain inventory and a staff that can handle peak periods? And vice versa - how do you avoid unnecessary costs during periods of low activity?
Regardless of industry, one of the biggest tasks for any business is to adapt to supply and demand and ensure the same high level of service and quality of delivery - no matter how much demand fluctuates to one side or the other.
Therefore, our advice is for companies to give their logistics solution a strategic service review and make an overall decision: Should we handle all or part of the logistics ourselves? Or should we do it in collaboration with specialists? And how many different specialists and contact points do we want to service and collaborate with?
Stable customers deserve stable quality
On a more practical level, the logistical set-up is also crucial.
Because what good is it that a company has produced a top product if customers don't receive it on time? If the products are damaged on arrival? Or if the company simply can't keep up with demand?
If companies can't live up to the aforementioned parameters, customers will most likely start looking for other suppliers.
And this is where the warehouse and logistics solution comes in. Despite the excellence of the product, it ends up being the deciding factor that determines whether your business can deliver the same high standards when demand suddenly increases significantly or drops drastically.
That's why the transportation and logistics solution is essential for a company's ability to scale in the market. Every company should keep this in mind when selecting a logistics partner.
