The term ‘agility’ means to move quickly and easily. Agility in logistics and transportation companies means reaching their customers within the estimated time and the ability to bring control over the circumstances that are unexpected or disruptive. All transportation companies or e-commerce companies should have devised plans and strategies that will help them resist and bounce back to give in the most credible and dependable services. To implement agility and control over the working of the company, the company should have access to resources for:
Determine the optimisation levels that can help in improving the functionality of the logistics services provided. To get a better understanding of the operational systems of the company and to be able to access data in real-time. To switch the company to advanced technology and the latest developments in the market.
The reasons for logistics and transportation companies to agility and control in their working is important because:
Meet the Market Demands
Implementing agility into the business strategies can help the company or business to keep up with the high expectations of the market. The market is constantly evolving and requires adaptation to adapt to the needs and demands of consumers far and wide. An agile supply chain will be able to keep up with consumer expectations, affordable rates on shipping and speedy delivery. The companies require to envision many ways to enforce agility and control in the supply chain management.
Helps in reducing supply costs
Optimising costs is the most relevant feature bringing in profits to the business. When it comes to the logistics sector, optimising logistics costs should be the first and foremost requirement. There are many ways in which the logistics industry can reduce its costs on:
Warehousing and Storage fees Inventory Management Order Fulfilment Shipping
The agility of the business can be initiated through sourcing the goods from nearby areas, which can help reduce the transportation costs and sourcing raw materials for goods that are in demand.
Streamlines supply chain processes
Agility helps in bringing a uniform and systematic touch to the transport and logistics sector and making it more niche. This can improve the efficiency of the system and reduce the occurrence of errors. It can be possible only through inducing automation into the working of transportation and supply chain management. Bringing in automation doesn’t mean taking away manual efforts. It helps in making the process more effective by replacing old methods with new ones like automated order processing, placing of orders, shipping etc.
Read More: Is Automation Key to Logistics Efficiency?
Better Customer satisfaction
When the products are delivered within the time frame, it gives a better image of the transport and logistics company. Customers are always in the search for reliable and trustworthy logistics services which will help deliver the products on time. The logistics company should possess a dependable network of logistics solutions to meet the expectations of the customers. Agility and control can be brought in through new technologies that can help in order accuracy and deliverance.
We can look into the various strategies that can induce agility and control in the logistics and transportation companies:
Agility can be encouraged better when you know about the warehouse and the stock that vests in it. Inventory management and forecasting bring in predictive analysis of the warehouse and the stock structure. By keeping up with such requirements, the business will be able to predict the fluctuation in demand and help in maintaining healthy stock levels. It will help the business to conduct promotional sales, flash sales and enough stock for the festive season that is coming ahead. The spontaneous deliverance of products can help in the agility factor and bring in control over for timely decision making.
Setting Maintenance Points
Setting a maintenance level for the logistics company is very important for the smooth functioning of the sector. The transportation companies should have a clear-cut idea of the order flow. When the idea is devised, they can help determine the need for transporting vehicles and set them accordingly. If this is not enhanced, then there might be no availability of vehicles when the need arises. Analysing the external inputs on logistic requirements helps in rendering the goods and services to the customer within the estimated time.
Real-time data access helps in bringing more visibility to the activities of the company. It helps in proactive decision making which is highly beneficial for the company. Tracking the movement of the goods transported will bring in a better analysis of the time and resources taken to deliver a particular consignment. The routes will help in understanding and estimating the average time and hassles taken to reach the destination. It can help in finding better fuel-efficient ways which help in reducing the costs at large. Real-time tracking can also address the reasons for delays and discrepancies in a much more vivid way.
Implementing the right freight forwarding software can bring in insights from the past deliveries which help you save time and enhance agility and control over the deliveries. Past insights can help understand the requirements and other factors which pertain to a certain order delivery or deliveries which help in setting up the resources accordingly. Over some time, such collected data insights can devise a reliable system which helps the goods to reach the consumer at a preferred time and also help in decreasing the costs incurred for logistics resources.
Orderly alerts can bring much-needed agility to logistics and transportation companies. Alerts on the working of the system or when a particular logistics process is being delayed, supervisors can adopt measures which make sure that it doesn’t happen at a later date.
In this fast-pacing world, it is a much-needed requirement to have quick and spontaneous logistics services, which can meet the requirements of the consumers within a pre-estimated time. Implementing agility and control into the logistics business is one way in which the business can have a competitive advantage against the competitors.