Most of us are familiar with this expression and its message: A useable result is much more likely if things are kept as simple as possible.
Naturally, we have also worked with this mechanism in the logistics industry. Numerous cases have made this very clear. If a company’s logistics solution is more complicated than it needs to be, the solution ends up being both costly and inefficient.
For this reason, logistics should be made as transparent as humanly possible. Logically, this is most easily achieved if the solution is kept as simple as possible.
In our experience, logistics solutions are often made more complex if many parties are involved. Even though it has never been easier for people to communicate with each other, many may recognize the fact that the more links in a chain cargo or a message travels, the greater the risk that something is lost along the way.
For our part, we see examples that when a company uses too many different suppliers in the supply chain it may have an adverse effect on:
Errors and faults happen partly because the demands for coordination increase in line with the number of parties involved. Having the overall view is much more difficult, and this may ultimately have a negative impact on a company’s bottom line.
H. Daugaard has delivered logistics solutions for more than a century. We are specialists in logistics solution optimization in a wide range of markets. Having been in business for so long has provided us with great insight into logistics challenges faced by new customers.
This insight has enabled us to pinpoint the areas from the list above which are most likely to be a challenge. Over the years, we have all too often seen how a complex logistics solution has ended up being extremely costly for a company because customer service levels were negatively impacted – and thus the company’s profitability and growth potential.
Fortunately, we also have numerous cases underlining our statement that simple and efficient logistics solutions help to support a company’s customer satisfaction, delivery security and growth potential.
We are always experiencing a good and stabile service with reliable and dedicated employees. They always find a solution and they act agile
We experience H. Daugaard as self-driven and incredibly cooperative. Their ability to put the puzzle together for Envases Europe makes great value to our business
Our customers are really pleased with H. Daugaard. Their follow-up is incredibly fast, and their response time is short. We do not have any complaints, and most importantly – our sales are increasing due to the fantastic delivery performance.
Aalborg Portland has trough many years been having an extremely satisfactory transport collaboration with H. Daugaard. A crucial factor to us has been that the logistics run optimally every day. Especially delivering on time, which H. Daugaard fulfil. H. Daugaard is a reliable collaborator that always finds the most optimal transport solutions with high reliability of delivery.
On a strategic level, we have experienced that the logistics solution is paramount in meeting market fluctuations.
Markets have tended to be increasingly volatile for years. The corona crisis truly spelled it out for us – the right logistics set-up was more important to security of supply than ever. We live in a day and age in which the demand for a product can change in the blink of an eye. An age in which the real limitation to turnover and growth may well end up being logistics. How do you sell a product, you cannot deliver? And on the other hand – how many resources are required to maintain a stockpile and staff to handle peak periods?
Regardless of industry, one of the greatest tasks for any company is adaptation to supply and demand in its markets of operation. In addition, it is essential to a sustainable business that the company can deliver the same high service and quality time and again – regardless of demand fluctuations up or down.
We advise any company leader to take a good, strategic look under the hood of the company’s logistics solutions with an aim to overall decide and consider: Should we handle logistics ourselves? Or should we corporate with specialists?
In a more down to earth sense, the logistical set-up is also paramount.
What good does it do, if a company has manufactured a top-notch product, and customers do not receive the product within the agreed time frame? If products are damaged upon arrival? Or if companies are simply unable to keep up with demand? No degree in rocket science is required to imagine the reaction of customers under any one of those circumstances – they are most likely to look elsewhere at alternative suppliers.
This is where the warehouse and logistics solution enters the picture. Despite the excellence of a product, the deciding factor ends up being whether your company can deliver the same high standard when demand suddenly increases or falls dramatically.
The transport and logistics solution is essential to a company’s prerequisite for market scalability. Any company should have this in the back of its head when selecting a partner for its logistics cooperation.
In our next post, we will give you more good advice. The subject will be how a company keeps its logistics set-up simple to maintain the ability to understand the individual links of the supply chain – the key to a complete overview.