The success of most companies does not rely on luck. Success usually happens after periods of hard work and planning each step of the way as carefully as possible. Another determining factor in success is making the right choices on outside companies that can assist in handling the different aspects of operating a business. Securing the right type of company to move products across town or across the world can be very important to reaching and maintaining a presence in many markets. Here are 4 things top logistics companies have in common to assist their customers in getting their products out of inventory and into the hands of people who will use them:
1. Superb management practices. Knowing what to do and providing direction is fundamental to good management practices. Each employee should be aware of what the expectations are when doing their job. They should also be thoroughly trained in proper procedures and methods of how their duties are to be carried out. The less doubt an employee has about what they are doing the better it is for the overall operation. The management teams from the top logistics companies understands this and will make sure the proper steps are taken to ensure employees are prepared to perform.
2. Sound cash-flow procedures. The top logistics companies understand that inventory that is stored is money that is tied up and can't be used. They will emphasize the fast movement of products from manufacturers to end suppliers is crucial to generating a positive cash-flow. Positive cash-flow normally means the company is making money and paying its bills on time .
3. Use the latest technologies and innovations. Methods, systems and software are constantly being updated to improve efficiencies and procedures. The top logistics companies know that how things are done today may not be the best way to do it tomorrow. These companies are always on the lookout for new innovations that will help them get the job done better. There are no "this is the way we do it, it has always been successful and we're not going to change" statements coming from management. Instead the question asked is: "how can we do something better and who do we call to show us?"
4. Honestly measure how good of a job they are doing. Performing a critical analysis of how a company is functioning is beneficial to determining where the weaknesses are that need correcting. The top logistics companies are never completely satisfied with how they are doing things. They will analyze and reanalyze every aspect of their business to achieve the greatest output in all their processes.
The top logistics companies share many similarities. The comparison normally begins with the quality of management hired to run the operation. These managers allow for employee input and are open to new ways of doing things. They try their best to ensure that products are quickly moved from inventory to end users to ensure a continuous cash flow without resorting to borrowing money to fund day to day operations. These are management teams that get things done and can be a good partner for customers to count on to help maximize profits for all.
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+