The Unseen Supply Chain
As consumers continue to buy record amounts of products, there is a largely unseen and unappreciated aspect to business that remains in the background. The process of getting the right product to the right customer at the right time is the job of effective logistics. Every company that produces a product for consumers or other businesses must deal with the issue of the supply chain, or logistics.
Not only do companies have to ship products to customers, they are customers to many other companies for raw materials and supplies. Every day, billions of dollars of products are in transit to meet the needs of the economy and its businesses. Over the past few decades, energy and other costs have combined to make logistics a major cost for many companies.
During the same period of time, these economics and developments in technology have created a new focus on the way the supply chain functions. Logistics is a multi-billion dollar business that requires a new level of discipline and attention. Because of these market dynamics, there are now third party logistics services that focus solely on supply chain issues.
Focusing on the Right Priorities
For many companies, it is a challenge to stay on top of their core business. In most of these companies, the logistics end of the operation garners little attention as an area of potential improvement. The right third party logistics services, such as LeanCor, can play a significant role in bringing operational improvements that produce measurable financial results.
In a great majority of situations, the outsourcing of the logistics function can produce significant benefits to a company. The first area of improvement is providing greater control over issues such as inventory and customer satisfaction.
Properly installed technology and best practices provide minute-to-minute insights to the overall status of logistics operation and detailed, real-time information for customers. Management is freed from issues related to shipping and warehousing to focus on their core business.
A second source of improvement is financial performance. Very often, third party logistic services bring a positive impact to a company’s bottom line. Throughout the areas of inventory, materials and supplier management, transportation and warehousing management, and all aspects of the supply chain, a disciplined and educated approach can introduce efficiencies and other savings.
Why Outsourcing Logistics Makes Sense
The basic concept that the right third party logistics services rely on for maximizing the benefits of outsourcing is lean logistics. LeanCor, for example, has a discipline of relentlessly seeking continuous improvement in all aspects of operations to constantly achieve new levels of performance.
The use of third party logistics services is an increasingly popular choice of many businesses, both large and small. Choosing the right outsourcing option calls for an evaluation of the vendor’s operating philosophy, supply chain experience, and success history. The best candidates will offer the ability to customize web-based applications and technology to the total supply chain process.
Rather than management giving up control of the logistics operations, the right vendor will actually provide more visibility and management control of all processes. With real-time information and greatly improved reporting, problems are more readily identified and resolved.
Developing an appreciation and culture of lean logistics is an important goal for today’s businesses. Choosing one of the third party logistics services can prove to be a wise step in that direction.
Posted by LeanCor Supply Chain Group
LeanCor Supply Chain Group is a trusted supply chain partner that specializes in lean principles to deliver operational improvement. LeanCor’s three integrated divisions – LeanCor Training and Education, LeanCor Consulting, and LeanCor Logistics – help organizations eliminate waste, drive down costs, and build a culture of continuous improvement.Facebook LinkedIn Twitter Google+