We all know that Logistics does not make money, it depend on sales generated from it subsidiaries, contractors or customers. These internal customers are crucial for the profitability of the unit and sustain the growth of the unit. There are many large to medium organisations nowadays focusing on customer whether it is an internal or external. Co-workers are engaged in the team meetings and briefing which seems to be an excellent initiative from the management.
Lets focus on how we can achieve efficiencies in your routines. We will go through few steps, precisely 8 steps of logistics to efficient goods handling.
Creating SMART and qualified goals that are aligned with the company values. Establishments without well defined goals run aground very quickly. SMART goals should be Specific, Measurable, Achievable, Relevant and Time bound. There are various ways we could accomplish goals at work and well at home.
Example of SMART Goals at work is to grow professionally in my position to a higher annual salary
Specific : I want to earn a pay increase
Measurable: I will keep a track of my progress and work with the management to ensure my goals and expectations are met within the year.
Achievable: Can we achieved by working hard and become a valuable member of the company.
Relevant: Realistic approach towards development and project opportunities with in the year to demonstrate my contribution
Time Bond: I want to achieve this in a year.
Example of Smart Goals in your personal life.
Specific: I have to pay off $4,000 in unsecured debt.
Measurable: I have to put aside $100 each month to that debt.
Achievable: I can achieve this by cutting down unnecessary expense
Relevant: I need to reduce my debt and would apply extra money to saving and paying off the debts.
Time Bond: Pay off my debt in 40 weeks
New year is an ideal time to start with the SMART goals.
Everyone plays a critical role in the success of the organisation. Recruit the necessary and relevant people, give them good training and have a pool of competent successors. Secure competences and flexibility with the logistics and across the company. Making sure the right crew are in place and have the necessary skills, knowledge and cross-functional know-how to carry out task. Build a structure to secure the logistical process. Clarify who does what is a footstep of formulating succession planning, recruitment, training and development plans.
It is important to get a balance between them, this will determine how efficient the goodsflow process. How will you see a pallet which will not move for 3 months in a prime location as compared to a product that will have a quick turnover time. Always aim for direct flow which will give you profitability in the long term. External contractors have to aligned to the delivery schedules of the unit.
Ensure stock figures are accurate and teams in the unit have a good knowledge of the warehouse or seasonal calendar. Carefully manage changes in the forecast. Accurate inventory results in high products availability and a great shopping experience. No matter how great the shopping experience is, what is the point if the store shelves are empty?
Correctly dimensioned and well-managed locations are key factor for the success of the warehouse. Optimizing these attributes will drive efficiencies in the Logistics process. Plan, test, calculate where you can reduce time and gain money. If you think a narrow aisle take 2 seconds longer than the wider aisle, consider changing the high turnover locations to the wider aisle.
Do we really make optimium use of the technology that we have? Is there anything that we regret investing and not using. Its like you own a Lamborghini, but it sits in the garage most of the time. Similarly Techonology should be used widely within the teams to collaborate, learn and grow.
Achieving efficient goods flow for large volumes needs planning. Take into consideration the in-deliveries, staffing and equipment. The efficiency of goods receiving. product movement, retrievals and replenishment have a big impact on costs and customer satisfaction. The way everyday routine works in vital.
Following up on the performance of the unit is an important task which quite a few organisations mis it. They think by implementing the system it will for itself, but when things go wrong, the drop in customer satisfaction and rise in the cost is often immediate. On the positive side when the logistic operation runs smoothly it brings immediate benefits of the unit and the profitability of the organisation.