Whether a large corporation or a small and medium enterprise, the supply chain is its lifeline. The logistics management process within that supply chain focuses on storing and transporting goods until they are sold to the final customer.
The goal of this management process is to reduce costs and increase customer satisfaction. The combination of efficiency, effectiveness and differentiation determines the success of logistics management.
To achieve this feat, the logistics managers take various steps such as:
- Find the quickest route for transportation
- Use an efficient delivery method
- Find vendors that have their transportation facility
- Discover new ways to automate the processes.
As per expert advice, you need to focus on specific areas within logistics management if you want to have a well-oiled supply chain.
So let us discuss them one by one.
Types of Logistics Management Process to Nail the Supply Chain
These are the ten prime areas of the logistics management process you’ll need to focus on to manifest a flawless supply chain:
1. Automation process
Automation is salvaging risks and loopholes across the industrialized world, from surgeries to logistics management. There are so many aspects of logistics management that automation can help to make it more efficient and swift.
Do not forget, the history of logistics is the history of automation — from the steam engine to a robotic arm moving parcel.
Did you know McKinsey Global Institute estimates that the warehousing and transportation (logistics) industry has the third-highest automation potential of any sector?
Task automation, tracking, and monitoring delivery using inventory management software are areas you can consider automating.
2. Forklift inspection process
A forklift is an indispensable part of a warehouse. They are used to move goods from one place to another within the warehouse. A 3-wheel forklift has a maximum load capacity of 4,800 pounds, while an all-terrain forklift can handle weight up to 35,000 pounds.
If forklifts are not inspected regularly, they can malfunction and stall the whole process.
They can also pose a serious risk to employees in the warehouse. Therefore, it is necessary to document the forklift inspection process to avoid malfunctions at critical moments. During the inspection, the employee must check for oil leaks and the condition of tires, brakes, guards, and motors.
3. Facility inspection process
Managing logistics facilities such as transport centers, distribution centers, and process distribution centers is the primary role of a logistics manager. An ill-managed logistics facility can become an unsafe work environment for the employees. It can also accrue fines and penalties for non-compliance from the regulatory bodies.
Therefore, for an efficient overall logistics management process, it is necessary to inspect the facilities every month.
In addition, the management should ensure appropriate safety measures such as fire extinguishers, fire blankets, proper lighting, secure loading dock, etc., within the facility.
4. Fleet inspection process
If a business has a fleet of trucks and other vehicles transporting goods from one place to another, its timely inspection is as necessary as a logistics facility.
Failing to do so will result in a supply chain breakdown, but it will also jeopardize employees’ lives.
It is good practice to have an annual inspection of the vehicle fleet.
The inspector should ensure the brakes, horn, turn signals, seat belts, etc., are in good working conditions. It will save the business from long-term repair costs and keep the supply chain up and running.
5. Warehouse inspection process
Warehouses are plain buildings used to store either raw materials or finished goods. They are crucial to any business that deals with import, export, and manufacturing of goods.
They can avoid liability if their warehouses comply with rules and regulations. A timely inspection of warehouses keeps employees safe by providing a hazard-free workplace.
Warehouse inspection is a logistics management process in which supervisors need to check for damages, safety measures, proper lighting, storage, equipment, etc.
6. Inventory management process
Inventory management primarily deals with stocking goods such as raw materials, WIP goods, and finished products. A business may maintain an inventory for various reasons. For example, the checklist helps in keeping seasonal demand in check. It can also reduce the overall time lag in the supply chain.
A business can incur unnecessary expenses that arise from overstocking due to a poorly managed inventory.
To mitigate this, it is necessary to follow an inventory management process that deals with the company budget, current stock levels, purchase order approval, arrival time, etc.
7. Container inspection process
An ISO container is a standardized freight container that is used to transport raw materials and goods. The best thing about these containers is their intermodality, which means they can be easily transported via ship, rail, and trucks.
Businesses should inspect their shipping containers at regular intervals to ensure the safe delivery of their cargo.
For example, the container should be empty before the inspection. Check the exterior and the interior condition of the doors, curbside, roadside, roof, and bottom of the container.
8. Order Fulfillment Process
Order fulfillment is an important aspect of the logistics management process, which includes the steps businesses take to ensure safe and quick delivery of the product to the customer.
Although the efficiency of the order fulfillment process may not be a cause of concern for SMEs, it can hurt the supply chain of large corporations and conglomerates.
Hence, it is wise to have a standardized fulfillment system to record order details, request items from inventory, weigh packages, schedule delivery, etc.
9. Order Processing
Order processing effectively delivers customers for small and medium businesses that do not have a complex fulfillment system.
Since it deals with the end-users, customer feedback is a crucial component of the order processing system. While the order fulfillment process needs a large team of employees, a single supervisor can handle the order processing.
For positive customer feedback, the supervisor must contact the warehouse, check the inventory, and keep in touch with the customers.
When your logistics plans go astray (which can happen), the individual in charge of cleaning up the mess must have excellent interpersonal skills. That person will not only have to re-arrange things with your staff, potentially making their lives more difficult, but they will also have to locate a last-minute logistics supplier to step in on occasion.
A manager with good skills, expertise, and a solid network of industry experts will be able to get your business out of a potential logistic mishap.
There are many advantages of an efficient logistics management process. It can reduce transportation costs considerably and reduce response time. Customer satisfaction can skyrocket with the quick and timely delivery of products.
Managers can also treat the fine line between overstocking and understocking to maintain the optimum level of inventory.
Successful and well-planned logistics management can help businesses develop supply chains that seamlessly integrate production and distribution processes. That can lead to higher profit margins and lower costs.
Logistics Management Process Automation Can Be a Savior
With the help of automation software, businesses can simplify their logistics management process that can, in turn, save valuable time, which can be utilized elsewhere.
Pulse is a cutting-edge EHS platform that offers different business automation features such as inspection checklist templates, API integrations, reporting, analytics, and more.
Signup for a free Pulse lifetime plan with limited features and see first-hand how this helps you achieve the desired results.