When creating the logistics strategy for your company, it's important to consider all the ways in which the company could succeed or fail. By examining things from every angle, you're more likely to ensure your strategy is robust and thorough, and your business will benefit from it. Here are five common mistakes companies make when create a logistics strategy, which can hurt the success of your strategy.
Not investing in technology
Technology can be expensive to implement and adopt, and it's easy to see why so many logistics companies are wary of the upfront costs. However, technology has the potential for significant return-on-investment for companies who implement it properly. With competition in the industry continuing to put a strain on companies, the only way to remain competitive is to modernize your processes and invest in technology that can help you do so.
Poor inventory visibility
In order to make the best decisions for your business, you need accurate data to base your decisions off of. Accurate and up-to-date data on your inventory is essential to make purchasing and procurement decisions, as well as improvements to warehousing and distribution needs. Without visibility, you're missing out on this essential information.
The only constant in business is change. As your business grows and progresses through the years, it is bound to change in various and possibly unpredictable ways. If your strategy is too rigid, you will be unable to adapt quick enough to meet the changes that may present themselves, and you risk losing out to the competition who was better able to adapt.
Not Using 3rd Party Resources
This relates to flexibility. Having some 3rd party partners which can quickly be leveraged in times of change and transition can help you to quickly adapt to minor changes without having to manage these changes with only your existing resources.
New strategies, technology, and resources are fantastic ways to improve your business, but they are nearly useless if your team doesn't know how to use or implement them. It is important that you train your employees in all new resources and technology, and keep open communication about changes to strategies and reasons for these changes. This way, your team will be better prepared to leverage these changes and new resources to improve your business in all areas.